Question

Economics help?!!!!!!

In this lesson, you will submit a yearly budget based on your current salary or the specific salary from the career path activity earlier in the lesson. As you work to create your budget, please make sure that you complete all of the steps detailed in the lesson:

Calculate Your Income: Determine your net income value by subtracting estimated taxes and fees from your gross income.
Calculate Your Expenses: Estimate how much you will spend in a full year for each of the 11 categories listed in the lesson.
Put It All Together: Using the provided budget worksheet, compile and present calculated income and expenses.
Analyze Your Budget: Determine if you are living within your means. If necessary, find ways to reduce expenses so that they are in line with your income.

Reflecting on this Activity
Teen with hand on chin thinking© 2009 JupiterImages Corporation

Inspect your budget again, ensuring that all numbers represent yearly costs and that your calculations are realistic and correct. In the title of your budget, please indicate the career path for which you are budgeting. Check that your expenses are fully covered by your income. Save a copy for yourself and for your instructor, and answer these reflection questions:

Why is budgeting important to your life?
Describe your experience with this process. Was it easy, difficult, or somewhere in the middle? What factors contributed to your feelings?
How might the use of credit for a large purchase affect your budget? Discuss which type of credit plan you would use, and how your budget can help you protect your credit score.
What adjustments did you have to make to your budget? How did you decide where to make changes?
Will you begin using a budget regularly now? Why or why not?

Answer 1

Budgeting is important in my life because money is an important resource and it needs to be managed well.
It was easy because it was not real. Maybe when I become an adult, it will become difficult.
A large purchase credit will take a big part of the budget. The interest will take out those parts intended for things which means that I will have to make cheap purchases for those items that can be adjusted.

Answer 2

Answer:Budget is a financial statements indicating estimated and sizes of anticipated revenue and proposed expenditure for a period of time.

The personal budget of an individual could be a surplus budget or deficit budget, or balance budget. It is surplus when income is greater than expenditure. It is deficit when expenditure is greater than revenue, it is balance when income is equal to the expenditure.

In a situation where the income is not enough to cover the expenditure the person can cut down most of the expenses to a manageable size, so as to ensure that there is more money to meet the most pressing need at the point in time.

Explanation:

The person could make changes to the budget by cutting down all expenses that is not necessary, that is not so important at the moment. With a view to make money available for those item that has to do with the survival of the home such as food, clothing and shelter.

All the purchase of luxury item that can affect the budget should be removed from the budget until there is more money to satisfy them.