Using a Budget

1. SECTION 3-3 pp. 153-155 Using a Budget

2. Compare: • amount budgeted to actual expenditures Section Objective

3. Key Words to Know expense summary (p. 153) A monthly report that compares the amounts you spend to the amounts you have budgeted. emergency fund (p. 153) Extra monies set aside to be used for unpredictable expenses, such as medical bills and vehicle repairs.

4. A Rock Star’s Lyrical Leverage p. 153 List a few “surprise” expenses that you might incur in a year.

5. Example 1 At the end of March, the Zornows prepared an expense summary. They had planned to spend $220 on groceries. They actually spent $231.85. How much more or less did they spend on groceries than they had budgeted for?

6. Example 1 Answer: Step 1 Compare. Is the amount spent more or less than the amount budgeted? Is $231.85 more or less than $220.00? More.

7. Example 1 Answer: Step 2 Find the difference. $231.85 – $220.00 = $11.85 more than the amount budgeted

8. Example 2 At the end of September, the Escobars prepared an expense summary. They had planned to spend $210 on transportation. They actually spent $197.80. How much more or less did they spend on transportation than they had budgeted for?

9. Example 2 Answer: Step 1 Is the amount spent more or less than the amount budgeted? Is $197.80 more or less than $210? Less.

10. Example 2 Answer: Step 2 Find the difference. $210 – $197.80 = $12.20 less than the amount budgeted

11. Practice 1 The Murrays’ electricity bill for July was budgeted for $88. They actually spent $124. How much more or less did they spend than they budgeted?

12. Practice 1 Answer $36 more

13. Practice 2 The Zieglers’ entertainment expenses for August were budgeted for $110. They actually spent $104.62. How much more or less did the Zieglers spend than they budgeted?

14. Practice 2 Answer $5.38 less

15. END OF SECTION 3-3 Using a Budget