40 Chapter 2 Making Smart Decisions
When a budget period ends, fill in the Actual column in the budget with
amounts for actual income and expenses. When a real expense is greater than
the amount planned, identify the cause. Did you ignore the plan? Was there
an unexpected expense? Was your estimate too low? Adjust your budget to
reflect actual income and spending. Try it for a few weeks. You may wish to
draft a similar form for your own financial planning.
Put your budget in writing and keep it up-to-date as you go along. The
tips in Figure 2-6 can make a budget work better.
Budget
Week or Month of _______________
Sources Estimated Actual
Income
Babysitting $ 25 $ 25
Yard work 40 40
After-school job 200 200
Allowance 40 40
Gifts 10 10
Total Income $ 315 $ 315
Expenses
Fixed Expenses
Bus pass $ 15 $ 15
Lunches 90 90
Savings 15 15
Total Fixed Expenses $ 120 $ 120
Variable Expenses
Snacks $ 20 $ 20
Movies/concerts/events 40 40
Clothes 50 50
CDs/music files 25 25
Gifts 20 20
Magazines 15 15
Grooming aids 25 25
Total Variable Expenses $ 195 $ 195
Total Expenses $ 315 $ 315
Goodheart-Willcox Publisher
Figure 2-5 Use a form similar to this one for your budget. Use your estimates of
income and expenses, financial goals, and record of spending to complete
your budget.
FYI
Before you give to a
charity, research it
to understand how
your money will be
used. There are many
resources on the Internet
that will help you evaluate
an organization and its
goals.
Engage
Ask students if they have ever
created a budget. Why or why not?