Cogito
Consumer Math · Chapter 2 · Lesson 1
Building a Budget
Give every dollar a job.
12 problems · about 21 minutes · TEKS M.M.2.A
What this lesson teaches
The student builds a monthly budget separating fixed from variable expenses.
- A budget plans money before it arrives.
- Fixed expenses stay constant; variable ones are where adjustment happens.
- Treat saving as a fixed expense taken first.
Warm Up
Straightforward practice. Get the method working first.
5 problemsIncome $2800, expenses $2500. Surplus in dollars?
Answer 300
Why $300.
What does "pay yourself first" mean?
Answer Set savings aside at the start of the month, before spending.
Why Savings go first, as a fixed expense.
Income $3000, expenses $2600. Surplus in dollars?
Answer 400
Why Subtract.
Expenses $900, $250, $180 and $120. Total in dollars?
Answer 1450
Why Add them.
The 50-30-20 rule on $3000 net. How much to saving, in dollars?
Answer 600
Why 20% of 3000.
Build It Up
The same ideas with more to keep track of.
3 problemsSame rule and income. How much to needs, in dollars?
Answer 1500
Why 50% of 3000.
Income $2000, expenses $2150. Deficit size in dollars?
Answer 150
Why 2150 − 2000.
Rent $1200 out of $3000 net. What percentage is housing?
Answer 40
Why 1200 ÷ 3000.
Stretch Yourself
Mixed problems. Work out what kind of question it is before you start.
4 problemsSort each expense by its type.
Answer Fixed: Rent, Car loan payment · Variable: Groceries, Entertainment
Why Which ones are the same amount every month?
The 50-30-20 rule on $4000 net. How much to wants, in dollars?
Answer 1200
Why 30% of 4000.
The Surplus: Income $2400, expenses $2200. What is the surplus, in dollars?
Answer 200 dollars
Why $200.
The Deficit: Income $1800, expenses $2000. What is the surplus, in dollars?
Answer -200 dollars
Why −$200, a deficit.