​Learning Objective

​I can develop a system to keep and use financial records and balance a simple budget.

Created by HISD Curriculum using Google Slides

Let’s review our vocabulary.

Budget

A plan used to decide
the amount of money
that can be spent and
saved for a given
period of time.

Balanced Budget

When expenses are
equal to income; also
known as a zero
budget; extra money
not spent on itemized
expenses can be
allotted to savings in
order to balance a
budget.

​Surplus: Extra money left over after expenses, income is greater than expenses.

​Deficit: Spent more than you made, expenses are greater than income.

Created by HISD Curriculum using Google Slides

Guiding Question:

What is a balanced budget?

Created by HISD Curriculum using Google Slides

What is a balanced budget?

A budget is a spending plan that helps people make responsible decisions about spending
and saving money. A balanced budget is when expenses are equal to income. Look at the
example of a budget below. What do you notice? What do you wonder?

We notice that William has 4 sources of income, which is money he is earning. We also
notice that he has four expenses. We also notice that we don’t know William’s total income or
total expenses.

Image by HISD Curriculum using Microsoft Word

Created by HISD Curriculum using Google Slides

What questions can we answer from William’s budget?

1.

What is William’s total income for the month?

2.

What is William’s total expenses for the month?

3.

Did William create a balanced budget?

4.

If not, how much more money does William need to pay for all of his expenses?

Let’s answer our first question.

Image by HISD Curriculum using Microsoft Word

Created by HISD Curriculum using Google Slides

What is William’s total expenses for the month?

We can find William’s total expenses by adding the money he spent on savings, snacks,
movies, and donations. Let’s generate our equation and solve.

e = $20.00 + $26.38 + $25.75 + $16.50

e = $88.63

William’s monthly expenses were $88.63.

Did William create a balanced budget?

Image by HISD Curriculum using Microsoft Word

Created by HISD Curriculum using Google Slides

Your Turn!

Go to the “Let’s Practice” activitynext.

First lets sort between income and expenses.

​Purchasing a PlayStation for $554.74.

Earned $25 per lawn and mowed a total of 15 lawns this month.

Got $15 per hour babysitting and baby sat total of 16 hours this month.

Parents gave me my $100 monthly allowance.

Bought a game for $64.35

Put $50 in savings.

Was gifted $200 from birthday cards from family.

Paid $27.19 for my BBF birthday gift.