A budget is a way to keep track of your money. When you budget your money carefully, you can buy the things you want, instead of hoping to get them on your birthday or the holidays.
Long John Saver’s Budget
Money earned washing the car: $3
Money earned mowing the neighbor’s lawn: $7
Money earned from paper route: $10
Went to movies: $6.50
Bought popcorn and drink at movies: $4.50
Helped sister pay for Mom’s birthday present: $5
Deposited into his account: $5
How much was Long John Saver’s total income?
Answer: Total income = $25 ($5 + $3 + $7 + $10)
How much was Long John Saver’s total expenses?
Answer: Total expenses = $21 ($6.50 + $4.50 + $5 + $5)
How much does he have left over?
Answer: He has $4 left over ($25-$21).
Long John Saver wants to buy a new bike that costs $75.
If he saves $5 each week, how many weeks will it take him to save $75?
Answer: At $5 each week, it will take him 15 weeks ($75 divided by $5).
What if he saves $10 a week?
Answer: At $10 each week, it will take him 7.5 weeks ($75 divided by $10).