Problem #9 Test 2Solution

15.5 x 35 equal 542.5

FIT 2-A 47SS 0.062 33.64

Medicare 0.0145 7.87Local 0.015 8.14State 0.03 16.28

Medical 50Deduct 162.93

Record Keeping and Budgeting

Chapter ThreeObjective: Compute the average

monthly expenditure

Average Monthly Expenses

• Should individuals keep track of their financial records?

• Key Terms:• Budget- plan for using money in a way that

best meets your needs and wants• Expenditures- items you spend money on • Budget Sheet- tool used to keep track of your

spending habits

Making a budget:

• Income = Expenses

What about savings and Investing?

Budget project

• Keeping track of the little things

Net Worth

• How much am I worth?• Why is this important?• What do you want to see happen to your net

worth over your lifetime?

What about variable expenses?

• Monthly Electric Bills:• 121.47, 153.56, 125.88, 201.00• What is the average bill over the four month

period?• 150.48• Insurance bill that comes only twice a year• 400 every six months• Average monthly expense?• 800 / 12 =

Concept Check page 158

• Problems 1, 2,3• 197.22• 293.31• 124.04

Budgeting Project

• Description:• Keep a log of your day to day expenses for a

period of 30 days.• October 1 thru October 31• Project: 30 points• Includes analysis and pie chart at the end of

the month.

Closure

• How does the word “average” relate to budgeting concepts?

• When do you average your monthly costs instead of real costs?

Homework page 159

• Problems 11-14