Idea 15of 23Builds onValues shape a budget
Surplus, balanced or deficit
How can you tell whether a plan fits the money?
Today you'll discover
- what a surplus is
- what a deficit is
- how to tell from the two totals
Think firstJo has $30 for Saturday
Jo plans $12 + $8 + $9 + $6 for the day. Does that fit in $30?
Decide first, then press Next. Compare the two bars under the lists.
Jo's Saturday budget: $30 in; out, activity $12, food $8, gift $9, save $6. Bars show money out longer than money in, and the line reads: $35 is $5 more than $30, a deficit of $5. Then Kai's budget with $7 left over, a surplus. Then Jo's plan with a $4 gift: $30 − $30 = $0, balanced. The last step shows Eli's November budget, $50 in and $52 out.
See the whole ideathe big idea and the key word, in one place
The big idea
More in than out is a surplus, equal is balanced, and more out than in is a deficit.
Three kinds of budgetIn − out is more than $0: a surplus. Exactly $0: balanced. Money out is bigger than money in: a deficit.
Easy to get wrongA deficit is a plan to spend money you do not have. Fix it before spending, not after.
Key words
- surplus
- money left over when the money in is more than the money out
- balanced budget
- a budget where the money out equals the money in exactly
- deficit
- how much the money out is more than the money in
Ready to use it?
- Say whether a budget has a surplus, a deficit or balances.
- Find the size of the surplus or deficit.