Michel Dayana Balcázar Arévalo

What are my own income and expenses?

Now that you’ve learned about David’s earning and spending habits it’s time to learn
about your own. Use the table on the next page to keep track of your income and
expenses for a period of one month.

Real World Math authors Donna Guthrie and Jan Stiles, suggest the following key steps
for tracking your income and spending.

1. Include all sources of income.

Identify where you get your money - allowance, part-time jobs, gifts, etc. What
you make may vary from month to month so try to look for trends. For
example, you may have more income on the month of your birthday or around
special holidays.

2. Don’t forget about taxes!

Make sure you base your earnings on the money that you actually take home
(net salary) and not on your total salary (gross salary). Don't forget that income
taxes and Social Security taxes are deducted from what you earn. If you like to
learn more about taxes and how it affects your earnings refer to the resources
section at the end of this chapter.

3. Keep track of everything you spend.

Keep tabs on everything you spend - even the littlest things. Keeping an
accurate record of your spending habits will go a long way towards helping you
understand where your money is going. Also, be sure to save your receipts for
everything you buy. This will also help you to keep better track of your
expenses.

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 My Income & Expenses for the Month of

INCOME EARNED
SENA
$580.000
MANICURE Y PEDICURE
$250.000

$
TOTAL INCOME: $830.000

EXPENSES THIS MONTH SPENT

food for pet dog $160.000

paying for cell phone bill $59.000

pay electricity bill $50.000

eyelashes $70.000

do market. $150.000

buy Netflix gift card $30.000

monthly savings goal $150.000

transport $85.000

buy cool. $8.000

buy unnecessary things from dollar city. $35.000

TOTAL EXPENSES: $797.000

DIFFERENCE: $33.000
(Income minus Expenses, or Net Income)

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 Activity:
1.What was your total income for the month?

R/:my total income was $830,000.

2.What were your total expenses for the month?

R/:my total expenses add up to $ 797.000.

3.What was your net income? (Net income is income minus expenses.)

R/:my net income was $33.000.

4.Was your net income more than, less than, or equal to your expenses for the month?

R/:my income is greater than expenses, because i had control of my expenses at the
time of making purchases.

5.If your expenses were greater than your income, what expenses do you think you
could reduce or eliminate? Why?

 would eliminate Netflix gift cards because i hardly didn't use Netflix and that
card is lost.
 I should reduce the buys from dollar city because many times I buy things that I
don't use, and they stay stowed around.

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 6.What expense should you most likely not reduce or eliminate? Why?
I can't reduce:
 food because it is important for a healthy life.

 my dog's food because it is my responsibility.

 the market because without a market we cannot eat.

 the electricity bill is important to be able to do homework.

 saving serves for a better future because they are elements that help you get your
things.

Reduce and eliminate unnecessary things my expenses would be: $742,000

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Understanding my needs and wants

An important concept in budgeting and money management is to understand the

difference between things that you need and things that you want.

Needs are things you must have for survival. Examples include food, water, your
home, and clothing. Without food, you would not be able to live. Needs can also
represent things that are key for helping you succeed at something that is important to
you. One example may be having baseball cleats for playing on your high school
varsity team. Wants are something that you would like to have, but are not necessary.
Wants are things you could put off having right away or you could do without
completely. Some examples of wants would be a video game, music player, or the
latest cell phone.

Sometimes a need seems like a want, and a want seems

like a need

Needs and wants may sometimes seem to overlap. For example, although cake is a
food, it is a want and not a need. In general, you need a basic diet to survive, but
that diet does not need to include cake.

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Activity:
Either on your own or with your classmates decide which item you think is a
need or want by circling one of the words for each item shown. Remember,
something you need usually means you must have it for your survival, personal
health and safety, or personal success. Something you want is not necessary to
have right away or at all.

1. 2. 3. 4.
Skateboard Eyeglasses Music Player Lunch

Need Want Need Want Need Want

Need Want

5. 6. 7. 8.
Winter Clothing Cell Phone Video Game School Supplies

Need Want Need Want Need Want Need Want

9. 10. 11. 12.

Diamond Ring Ice Cream Cone Watch Umbrella

Need Want Need Want

Need Want Need Want

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 Activity:
Use the table below to list some things that you believe are needs and wants.
Then explain briefly why you feel that way.

Needs Wants Why

Food important to have a good diet.

dog food because it is a responsibility so that he

can live more time with us

house receipts They are necessary to be able to keep the

food in the house in good condition.

buy Netflix gift card. It is a pleasure for each person to see

new movies.

eyelashes They are a wish for women to look

prettier.

monthly savings goal

It helps you to achieve your dreams
later.

They are unnecessary to buy because

buy unnecessary things from when we get to the store, we find
dollar city. everything cheap and that makes us buy
them and not use them.
do market
It is a necessity because it helps us so
that our houses do not run out of markets
and thus be able to prepare food.

Cell Phone
It is necessary because it helps us to
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 communicate with loved ones and to be
able to be in contact with our work
groups and any information that teachers
send us.

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