Mathematics for Everyday Life

Lesson 9: Budgets

1. The following are four tips for maintaining a budget. Explain how a person could follow each tip. (2 marks each) 1. Be a good consumer. 2. Exercise willpower and self-control. 3. Develop a good record keeping system. 4. Evaluate your budget regularly. 2. Complete the following budget and answer the questions that follow. (8 marks) a. What is the difference between the budget and the actual expenses? b. Where did this person spend less than planned? c. At the end of the month how much money did this person have to add to their savings? d. What would you change about this budget? Why? 3. Create a budget for each of the following people. (5 marks each) a. Rob has a monthly income of $1652. - His fixed expenses include $550 for rent, $232 for school loan payment, $152 for care payment and $112 for insurance. - His variable expenses include $85 for utilities, $40 for telephone, $120 for food, $50 for household items, $50 for transportation and $100 for entertainment. Kari has a monthly income of $810. - Her only fixed expense is $150 for rent. - Her variable expenses include $45 for utility and phone bills, $95 for food, $50 for personal items, $50 for bus fare and $40 for entertainment. Dan has a monthly income of $1550. - His fixed expenses include $600 for rent, $472 for car payments and insurance. - His variable expenses include $20 for telephone, $195 for food and household items, $50 for gas and $100 for personal items and entertainment