1. What is a budget?

2. Explain the difference between income and expenses.

3. What is your current source of income?

4. What are your current expenses?

5. What are fixed expenses?

List some examples.

6. What are flexible expenses?

List some examples.

7. List three reasons for having a savings account.

• Pretend that you make $160.00 per week (Gross pay).

1. Your employer deducts 15% of your gross pay from your paycheck for taxes and benefits. How much would you take home? ______________________

2. Although you are paid on a weekly basis, most of your expenses are paid on a monthly basis. Assuming there are four weeks in most months, how much would you have to spend? __________________________

3. The budget sheet below provides spaces for you to write in the amount you would spend each month for each expense item when you live alone or with one or two others. Remember: you cannot spend more money than you earn per month. Some of the items you must pay; the amounts you spend vary when you share expenses.

BUDGET ITEM; LIVE ALONE SHARE WITH ONE SHARE WITH 2

Electricity __________________________________________________________

Telephone __________________________________________________________

Water ______________________________________________________________

Garbage ____________________________________________________________

Clothes _____________________________________________________________

Entertainment ________________________________________________________

Groceries ___________________________________________________________

Personal Supplies ____________________________________________________

Household Supplies ___________________________________________________

Transportation ________________________________________________________

Savings _____________________________________________________________

Gifts ________________________________________________________________

Insurance ____________________________________________________________

Spending Money ______________________________________________________

A.

Joe wrote a check to Desert View Apartments for one month’s rent. He wrote the check on Ausust 1, 1998. The rent is $300.00 a month. Fill in the check, using the information given.

B. Balance Joe’s checkbook.

RECORD ALL CHARGES OR CREDITS THAT EFFECT THE ACCOUNT