Economics ?

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, 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, 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 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?