Budget for Fun

Purchasing concert tickets, buying electronics, and dining out can become expensive.

Why should you budget for entertainment?

Lesson Objective Compute the average monthly expenditure.

Content Vocabulary

recordkeeping

expendituresrecordkeeping

Keeping track of items you spend money on during a period of time, to help you manage your money.

recordkeeping

Keeping track of items you spend money on during a period of time, to help you manage your money.budget sheet

living expenses

budget

expenditures

Items you spend money on.

expenditures

Items you spend money on.budget sheet

A record of monthly expenses.

budget sheet

A record of monthly expenses.living expenses

Routine expenses, including amounts for food, utility bills, and pocket expenses.

living expenses

Routine expenses, including amounts for food, utility bills, and pocket expenses.

budget

A plan for using money in a way that meets your wants and needs.

budget

A plan for using money in a way that meets your wants and needs.

Lesson Objective Use records of past expenditures to prepare a monthly budget sheet.

Content Vocabulary

fixed expenses

annual expenses

fixed expenses

Regular expenses which do not vary from one month to the next, such as rent.

fixed expenses

Regular expenses which do not vary from one month to the next, such as rent.

annual expenses

Expenses which occur only once a year; such as real estate taxes.

annual expenses

Expenses which occur only once a year; such as real estate taxes.

Lesson Objective Compare the amount budgeted to actual expenditures.

Content Vocabulary

expense summary

emergency fund

expense summary

A monthly report that compares the amounts that you have spent to the amounts that you have budgets.

expense summary

A monthly report that compares the amounts that you have spent to the amounts that you have budgets.

emergency fund

Extra money set aside to be used for unpredictable expenses, such as medical bills and vehicle repairs.

emergency fund

Extra money set aside to be used for unpredictable expenses, such as medical bills and vehicle repairs.

Expense Summary

Once you have completed a budget sheet outlining your past expenditures, you can use it to plan for future spending.

SummarySummarySummarySummary

Needs and Wants

Recordkeeping is a way for you to

manage your money.

Budgeting

A budget sheet is helpful in planning how to use your money in a way that best fits your wants and needs.

NeedsBasic living expenses are paid for first.

WantsUse money leftover to buy things you want.

1. Rhonda Dixon spent the following amounts on groceries for the last three months: $198.45 in January, $202.49 in February, and $211.45 in March. What was her average monthly grocery bill?

A. $202.31

B. $204.13

C. $207.66

D. $207.94

2. ALGEBRA Earle Edwards had a $234.53 average monthly expenditure for gasoline and other related automobile expenses during the first quarter of this year. He spent $250.75 in April and $220.59 in May. How much can Earle spend in June to have the same average as in the first quarter?

A. $232.25

B. $235.25

C. $237.25

D. $239.25

3. Randy Cappabianco spent the following amounts on clothing during the last quarter: $158.50, $165.90, and $321.09. What is Randy’s average monthly clothing expenditure?

A. $209.12

B. $210.58

C. $211.96

D. $215.16

4. Kyle Jensen spends $2,390.50 each year on annual expenses including car insurance, life insurance, and real estate taxes. Calculate his monthly share of these annual expenses.

A. $99.61

B. $199.21

C. $1,195.25

D. $2,390.50

5. Calculate the total monthly expenses using Wilbur Wong’s records of past expenditures: annual expenses, $5,400; living expenses, $890; fixed monthly expenses, $645.90.

A. $1,535.90

B. $1,985.90

C. $4,506.58

D. $6,935.90

6. Calculate the total monthly expenses using Derek Lyon’s records of past expenditures: annual expenses, $2,800.50; living expenses, $1,070.28; fixed monthly expenses, $1,942.09.

A. $484.41

B. $2,100.59

C. $3,245.75

D. $5,812.87

7. Silas Walker and his wife have budgeted $55.00 each month for their cell phone bill. Last month, they spent $52.11. How much more or less did they spend on their cell phone than they had budgeted?

A. $2.89 more

B. $2.89 less

C. $3.11 more

D. $3.11 less

8. Trenton Daniels budgeted $295.45 on groceries each month. In June, he spent $299.40. How much more or less did he spend than the amount budgeted?

A. $3.95 more

B. $3.95 less

C. $4.00 more

D. $4.00 less

9. Heidi Stiles budgeted $200.73 on heating for the month. Last month, she spent $150.60. How much more or less did she spend than the amount budgeted?

A. $50.13 more

B. $50.13 less

C. $75.13 more

D. $75.13 less

10. Lindsay Thibodaux budgeted $100 per month on gasoline and $50 per month on tolls. Last month, she spent $99.63 on gasoline and $56.50 on tolls. How much more or less did she spend on each expense during the month?

A. $0.37 less on gasoline; $6.50 less on tolls

B. $0.37 more on gasoline; $6.50 more on tolls

C. $0.37 less on gasoline; $6.50 more on tolls

D. $0.37 more on gasoline; $6.50 less on tolls

End of

Chapter 3Recordkeeping