Question

Make a weekly budget that enables you to meet the financial goal you choose in the Show What You Know section. Copy the chart below into your notebook. Use the chart to create a weekly budget by following these steps: Consider how you receive money today. Whether you have a part-time job or earn spending money by doing chores for your family, you earn or obtain some income. Write down your income from all sources. Include cash gifts if you anticipate receiving them. Identify your spending needs (purchases that are required for you to live) and their cost in dollars. Include basic needs like housing, food (breakfast and dinner), transportation, and basic clothes (e.g., jeans and t-shirts, jacket, shoes). Sum up your purchases that are needs. Subtract the needs from your total income. Enter this under the column labeled Result. Will your income cover your needs? Identify your spending wants (purchases that are luxuries) and their cost in dollars. Sum up your wants and subtract them from the remaining income. Are you in a deficit or is there still money left (a surplus)? If there is money left, will you spend it or put it towards your savings plan for your financial goal listed above? If you are running a deficit, how will you bring your earning and spending into balance? How will you afford your financial goal? Weekly Budget Income Needs Wants External Support Result Income Source 1 Enter Amount Income Source 2 Enter Amount Total Income Enter Sum Need 1 Enter Amount Need 2 Enter Amount Need 3 Enter Amount Total Needs Enter Sum Income after Needs Enter Difference Want 1 Enter Amount Want 2 Enter Amount Want 3 Enter Amount Total Wants Enter Sum Income Remaining Enter Difference Expense 1 (10 gold coins) Enter 10 Expense 2 (10 gold coins) Enter 10 Expense 3 (10 gold coins) Enter 10 Total Coins Enter Sum For the items provided for you by someone else, put a placeholder amount—say ten gold coins for each in the bottom rows under the column “External.” We will maintain a separate account for the gold coins called “external support.” How many gold coins do you need each week? This is debt you have incurred. If you were living on your own, you would need income to cover those gold coins.

Answer 1

Here's an example of how to create a weekly budget, based on hypothetical data, to help you reach your financial goals. You can adjust the numbers based on your actual income, needs, wants, and goals.

Weekly Budget Chart

| Income | Amount ($) | |-----------------------------|-------------------| | Income Source 1 (Part-time Job) | $150 | | Income Source 2 (Chores) | $50 | | Total Income | $200 |

| Needs | Amount ($) | |----------------------------|-------------------| | Need 1 (Housing) | $80 | | Need 2 (Food) | $40 | | Need 3 (Transportation) | $30 | | Total Needs | $150 |

| | | |-----------------------------|-------------------| | Income after Needs | $50 | | Result (Income - Needs) | |

| Wants | Amount ($) | |----------------------------|-------------------| | Want 1 (Eating Out) | $20 | | Want 2 (Entertainment) | $15 | | Want 3 (New Clothes) | $10 | | Total Wants | $45 |

| | | |-----------------------------|-------------------| | Income Remaining | $5 | | Result (Income - Wants) | |

| External Support | Amount (Gold Coins) | |-----------------------------|-------------------------| | Expense 1 (Support from Family) | 10 | | Expense 2 (Gifts Received) | 10 | | Expense 3 (Other Support) | 10 | | Total Coins | 30 |

Summary:

• Total Income: $200
• Total Needs: $150
• Total Wants: $45
• Remaining Income after Needs and Wants: $5 (which can be put towards savings)
• Total External Support Needed: 30 Gold Coins (This would be your weekly financial obligation based on external support received.)

Financial Goals Planning:

If your goal, for instance, is to save up for a new bike costing $200, you can allocate the remaining $5 towards your savings every week. In 40 weeks (200/5), you'll reach your goal.

If you find that your needs and wants exceed your income, you may need to consider cutting down on some wants or finding ways to increase your income to balance your budget.

For saving, if your goal runs into a deficit after your needs and wants, you either need to increase your income (get more chores, find an additional job, etc.) or reduce your spending in either needs or wants to stay financially healthy.