CHAPTER 3 RECORDKEEPING Recordkeeping Recordkeeping Keeping track of

CHAPTER 3 RECORDKEEPING

Recordkeeping • Recordkeeping- Keeping track of monthly expenses by recording them in a budget sheet. • Expenditures- Items you spend money on.

Monthly Expenditures Living Expenses (Variable Expenses)Routine expenses, such as food, utilities, and clothing, that vary from month to month. Fixed Expenses- Regular expenses that do not vary from month to month, such as rent, mortgage, and car payments. Annual Expenses- Expenses which occur once a year, such as insurance premiums and real estate taxes.

3 -1 Average Monthly Expenditures • FORMULA Average monthly expenditure = Sum of monthly expenditures / # of Months STEP A) Find the sum of monthly expenditures B) Take the sum of monthly expenditures and divide by the number of months.

Example 1 – Use Figure 3. 1 • Sue and Bob Miller keep records of their expenditures. They want to know how much they spend each month (on average). What is their average monthly expenditure? • Step 1: Find the Sum of Monthly Expenditures • 1368. 22 + 1365. 00 + 1337. 21 = • $4, 070. 43 • Step 2: Divide the Sum of Monthly Expenditures by the Number of Months • $4070. 43 / 3 = _____ • $1, 356. 81

6 Concept Check • Turn your textbook to Page 158 • #’s 1 -3

Concept Check Review • Credit Cards • 121. 74+298. 65+171. 28= $591. 67 • 591. 67 / 3= $197. 22 • Groceries • 275+319+285. 92= $879. 92 • 879. 92/3=$293. 31 • Home Repairs • 275. 68+96. 45= $372. 13 • 372. 13/3= $124. 04

3 -1 Assignment: Page 158 -159 • Classwork: Turn in for Credit • Complete Chart: #’s 5 -8 • #’s 11 -15*Show Work

9 Do Now 1. Find the average. $125. 00 $320. 20 $450. 25 $356. 35 $312. 95 2. Are credit cards fixed or variable expenses? 3. Are groceries fixed or variable expenses? 4. Is rent fixed or variable?

10 What is the average monthly expenditure for the three months? July August September Car 340. 00 Electric 123. 23 Electric 120. 20 Electric 102. 30 Credit Card 100. 00 Credit Card 250. 00 Food 45. 00 68. 00 $728. 20 $608. 23 $708. 91 98. 00 $790. 30

12 Do Now • List one fixed expense. • List one variable expense. • What variable expenses did you spend your money on this week?

3 -2 Preparing a Budget Sheet • A Budget Sheet is a breakdown of all your expenses per month. • An accurate Budget Sheet allows you to compare your total expenses to your Net Income. • Why is this important?

Budget Sheets • Budget Sheets- A record of monthly expenditures • Expense Summary- A monthly report that compares the amounts you spend to the amounts you have budgeted. • Emergency Funds- Extra money set aside to be used for unpredictable expenses, such as medical bills and vehicle repairs.

3 -2 Preparing a Budget Sheet Total Monthly Expenses Monthly Living Expense Monthly Fixed Expense • STEP 1: Find the total monthly expenses • STEP 2: Find the monthly share of annual expenses • Annual Expenses / 12 (months in a Yr) • Add up ALL expenses = Total Monthly Expenses Monthly Share of Annual Expenses

3 -2 Practice Page 161 Figure 3. 2 1. What are total monthly living expenses? 2. What is their total monthly fixed expenses? 3. What is their total annual expenses? 4. What is set aside each month for annual expenses? 5. What are your total monthly expenses?

Section 3 -2 Classwork • Concept Check 1 & 2 • Page 163, #’s 3 -10 • Check Answers & Turn In • Workbook Page 36

Do Now • Find your new seat!

Annual Expense Review • Your annual expenses are $15, 000. How much should you set aside each month? • $15, 000 / 12 = $1, 250

Annual Expenses • Find the total amount of annual expenses? • How much should you set aside each month for your annual expenses? $11, 507 / 12 = 958. 92 Life Insurance $400. 00 Renters insurance $155. 00 Property taxes $10, 000. 00 Car Registration $52. 00 Car insurance $900. 00 Total $11, 507 Monthly Share $958. 92

Monthly Living Cost • Find the total Monthly Living Costs Food $325. 00 Water $25. 00 Credit Cards $320. 00 Sporting Events $225. 00 Gas $53. 00 $948. 00 Total

Classwork • Complete the worksheet handouts

Do Now- Collecting Today • Jim Miller had the following monthly expenses: • September: $1, 540 October: $1, 899 November: $1, 756 • December: $2, 244 • What is his average monthly expenditure for the 4 -month period? • $1, 540 + $1, 899 + $1, 756 + $2, 244 = $7, 439 • $7, 439 / 4 = $1, 859. 75 Average Monthly Expenditure

Goal • Review Chapter 3 and NYS minimum wage.

NYS Minimum Wage • What is the current NYS minimum wage? • $10. 40 Per Hour • Increases to $11. 10 on 12/31/18

NYS Minimum Wage • Do you think the minimum wage should be more for people working in NYC or Westchester?

Review • What is the monthly share of expenses? MONTHLY ANNUAL LIVING FIXED EXPENSES $1, 200 $1, 600 $4, 800 MONTHLY SHARE Total Monthly Expense ? ? $400 $3, 200

Classwork • Finish Workbook 35 -36 • 1 -9 • Worksheet Handouts • Review Terms Page 167 • Complete Numbers 1 -9 • #1 only use 3 keywords to use for a sentence

Do Now May June July Aug. Sept. Total Average 640. 00 710. 00 700. 00 685. 00 705. 00 $3, 440 $688

Terms • Annual Expense: Expenses which occur only once a year, such as real estate taxes.

3 -3 Using a budget • Expense Summary: Comparison between amounts budgeted and amount actually spent. • Step 1: Compare! • Step 2: Find the difference Difference

3 -3 Example 2 • Chris and John Escobar kept accurate records of their expenditures. At the end of September, they prepared an expense summary. They had planned to spend $210 on transportation. They actually spent $197. 80. How much more or less did they spend on transportation than they had budgeted for? • Step 1: Compare the amounts (less or more) • Less • Step 2: Find the difference • $210 - $197. 80= $12. 20

Concept Check • Complete the problems to find out how much more or less the amount spent is than the amount budgeted. • Zoe and Douglas Hamilton Budgeted $167. 80 and spent $158. 90 • Less • 167. 80 -158. 90= $8. 90 • Millie Bradley budgeted $647. 50 and spent $671. 92 • More • 671. 92 - 647. 50= 24. 42

3 -3 Classwork • Textbook Pg. 165 - 166 • Complete #’s 3 -11 and 13 • Show work for full credit

Do Now • Open textbook to page 165 -166 • Finish numbers 5 -9

Review Packet • Test on Wednesday • Worksheet handout • Please show work

Do Now- Find the Annual Expense & Monthly Share of the Annual Expense Life insurance $575. 00 Home Owners/Renters Insurance Car Insurance $840. 00 Charitable Contributions $600 Car Registration $54. 00 Total $2, 544 Monthly Share $212 $475. 00

Worksheet Handback Review • Monthly Budget Sheet • Questions? ?

• Classwork (Finish) üTextbook Pg. 165 - 166 üComplete #’s 3 -11 and 13 • Homework üWorkbook Pg. 37 ü#’s 1 -5 • Quiz Tomorrow

Do Now • Get into your Assigned groups • Page 3 Net Income: $2, 000 • Turn in Homework • Classwork (Finish) ü Textbook Pg. 165 - 166 ü Complete #’s 3 -11 and 13 • Homework ü Workbook Pg. 37 ü #’s 1 -5

DO Now (Collection Today) 625+318+455+265+150+177= $1, 990 On Average she spent for each expense 1990/6= $331. 67

CHAPTER 3 TEST REVIEW Mr. Conway

Review Expenses Amount Budgeted Amount Spent Difference Heating $80. 00 $0. 00 Cell Phone $35. 00 Water $24. 50 $31. 70 $80. 00 - $0. 00= $80. 00 Under $35 - $35= $0. 00 Even $31. 70 - $24. 50= $7. 20 Over

Average Monthly Expenditures • Last quarter, Jamal Williams had the following monthly expenditures: January: $1, 875; February: $1, 643; March: $2, 173. His expenses for April were 1. 5 times his expenses for February. His expenses for May equal his average monthly expenditures for January through March. What is Williams’ average monthly expenditure for April through May? • 1. 5 x 1, 643 = $2, 464. 50 April • 1, 875+1, 643+2, 173= $5, 691 /3 = $1, 897 May • 2, 464. 50+1, 897= 4, 361. 50 /2= $2, 180. 75

Preparing a Budget Sheet • Lucille Richards earns $1, 250. 00 semimonthly and has the following expenses—monthly living expenses: $837. 50; fixed monthly expenses: $925. 00; annual expenses: $4, 200. How much can she afford to spend each month on entertainment, after she pays her bills? • 837. 50 + 925 +(4, 200/12)= $2, 112. 50 Monthly Expenses • 1250 x 2= $2, 500 Semimonthly Salary • 2500 -2112. 50= $387. 50

Using a Budget • Kelly Krantz saved $250. 00 to buy clothes and supplies for the new school year. She went to the mall and bought the following items: 3 pairs of jeans that cost $35. 00 each; 5 shirts that cost $15. 50 each; new shoes for $48. 00; 6 notebooks at a cost of $1. 50 each; and a pack of pens for $2. 75. How much more or less than she budgeted did she actually spend? • (3 x 35)+(5 x 15. 50)+48+(6 x 1. 50)+2. 75 = • 105+77. 50+48+9+2. 75= $242. 25 • 250 -242. 25= $7. 75 Less