Idea 12of 23Builds onEstimate the tax and the change
A budget plans money in and out
What goes into a budget, and what does it tell you?
Today you'll discover
- what income and expenses are
- how to total each side
- how to find what is left
Think firstKai's budget for October
Kai gets a $20 allowance and earns $24 walking dogs. What is his income for October?
Decide first, then press Next. Read the left list, then the right list.
A budget sheet headed Kai's budget, October. Money in on the left: allowance $20, walking dogs $24, total $44. Money out on the right: bus fare $12, movie with friends $10, save for a bike $15, total $37. Two bars compare them, and a line reads $44 − $37 = $7 left over: a surplus. The last step shows Zoe's two-week budget.
See the whole ideathe big idea and the key word, in one place
The big idea
A budget plans the money in and the money out for a set time, like a month.
Making a budget
Say the purpose and the time. List the money in. List the money out. Compare the totals. Share it, then adjust it.
- Purpose and time
- Money in
- Money out
- Compare
- Adjust
Easy to get wrongSaving is planned too. Money set aside for a bike is listed with the money out, so it is not spent by accident.
Key words
- budget
- a plan for the money coming in and going out over a set time
- income
- money coming in: pay, an allowance, gifts
- expense
- money going out: things bought, bills, and money set aside to save
Ready to use it?
- List the income and expenses in a budget.
- Find what is left over.