Balancing a

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Chapter 9 Personal Finance
9.7
Balancing a Budget
9.7.1
MATHPOWERTM 11, WESTERN EDITION
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Balancing a Budget
A balanced budget is one for which the total
expenditure equals the total income.
Fixed expenses occur regularly. Some examples of
fixed expenses are things like mortgage and car
payments.
Variable expenses can also be regular but are
more easily controlled. Some examples would
include things like the food, transportation,
and entertainment.
Occasional expenses occur once or twice in a year
or unexpectedly. Some examples are the family
vacation and home renovations.
9.7.2
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Calculating Expenses
If the club had a total of 2400, calculate the
amount spent for each expense.
Ice Rental
720
600
Uniforms
480
Travel
Equipment
360
240
Misc
2400
9.7.3
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Balancing a Budget
One year Pauls net income was 31 340 and he
received 2850 from an investment. His total
annual expenses were
Rent 9600
Utilities 840 Food 5420
Telephone 342 Cable TV
284 Home Insurance 285 Car
Licence 110 Car Insurance
1125 Car Repairs 1720
Gasoline 1840 Clothing 2170
Entertainment 3450 Reading
Personal Care Material
185 Products
395 Vacation 1785
Gifts 685 Donations
625 Miscellaneous
1265
Complete an annual budget statement for Paul. Was
it a balanced budget? What percent of his net
income was Paul able to save?
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9.7.4
5
9.7.5
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Pauls Annual Budget Statement
Since total income and total expenditures are not
the same, this is not balanced budget.
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Therefore, he saved 5.9.
Percent saved
9.7.6
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Assignment
Suggested Questions
Pages 565 and 566 1-18, 20, 21ab, 25ab
Chapter Review Pages 572 and 573 1-28, 29a
9.7.7