Setting Up a Budget

A budget, also called a spending plan, can help you prioritize expenses, save for your future and stay out of debt, all of which contribute to a happy and healthy life.

1. Create a realistic spending plan by listing your expenses, which are all your costs.  For one month, write down what you spend your money on, right to the last penny.
2. Identify your income.  Income is all money coming in from allowances, part-time jobs or birthday money.  It's important to have a clear picture of the money you earn.
3. Plan for your expenses into two categories:  fixed or variable.  Fixed expenses are always the same, while variable expenses are those you have more control over such as entertainment, magazines or extracurricular activities.
4. Set aside 10% of what you earn for savings.  For example, if you have $1.00 in your pocket, set aside 10 cents for savings.
5. Ensure that you balance your budget and do not let expenses exceed income.

Here is a great Expense Calculator.  It shows how much you can save by cutting back on costs. 

Your task:  Prepare a simple personal budget using a spreadsheet.

You can use the spreadsheet in GoogleSheets, Excel in Microsoft Office, or LibreOffice.

1. List your sources of income. (allowance from parents, gifts, odd jobs etc)List your expenses for a month. (food, entertainment, movies/games, travel)
2. Savings – an expense calculated at 10% of your income.
3. Reflective response – are you living within your means? Complete this below your spreadsheet.

Submit your responses to the questions in the online text box or attach a file to the assignment submission link.