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Budgeting 101
In this module, your assignment is to create a draft budget for yourself. You might ask, “Why do I need a budget in high school?” The idea behind this activity is to teach you the skills to create a budget and identify:
1. Your spending habits
2. The reality of how you will need to spend your money in the future.
3. Understanding the difference between a fixed and variable expenses.
Budgeting allows you to create a spending plan for your money, it ensures that
you will always have enough money for the things you need and the things
that are important to you. Following a budget or spending plan will also keep
you out of debt or help you work your way out of debt if you are currently in
debt.
Fixed vs Variable Costs
Fixed Costs vs Variable Costs: Creating a budget is essential to saving for your life goals, and an important part of establishing one includes knowing the difference between your fixed and variable expenses. Fixed expenses are costs that typically remain the same in price and frequency, while variable expenses are costs that can change regularly.
Examples of Fixed Expenses
Examples of Fixed Expenses
Fixed expenses can include essential expenses, such as those needed to maintain a basic standard of living each month. Some of the most common fixed expense samples include:
Rent or mortgage payments
Renter’s insurance or homeowner’s insurance
Cell phone service
Internet/cable service
car loan payments
Examples of Variable Expenses
Examples of Variable Expenses
What’s included in a budget under variable expenses will vary from one person to another. But some of the most common variable expenses you may pay include:
Gas and Parking fees
Groceries
Dining out
Clothing
Personal care expenses
Entertainment / hobbies / recreation
BUDGETING ASSIGNMENT
YOU MAY WORK IN PAIRS OR ON YOUR OWN
YOU MAY WORK IN PAIRS OR ON YOUR OWN
Instructions
In pairs, create a MONTHLY budget which reflects the life of 2 college students using the chart provided. Using the Internet or talking to parents/older siblings/friends, provide reasonable costs for each of the outlined budget categories.
*** Provide snapshot of the accommodation and phone/cable/internet plan
STOP! Make a copy of the document before you start the assignment!
SUBMIT
SUBMIT YOUR ASSIGNMENT TO YOUR ADVISORY GOOGLE CLASSROOM
Due: April 28th
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