Using percents to create a budget. Financial Management

1. Questions about
Percents?
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2. How do I find
the percent of
a number?
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3. Why do I need
to find the
percent of a
number?
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4. Both of these are very
good questions! When you
create a budget, you
need to know how much
of your income you need
to set aside for expenses.

5. Remember that income
is money that “comes
in.” An Expense is
money that is paid out.
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6. Also remember that
an expense can be
one of two things: a
want or a need.
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7. So, what
does all of
this have
to do with
finding
percents? Image from MSClipArt

8. When you plan your
budget, you need to
find what percent of
your income you will
need for your
expenses.
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9. So, what does
that look like?
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10. Let’s say you have an income of
$1200. You need to use 60% of it to
pay your monthly bills. How much
money do you need to set aside for
monthly bills?
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11. To find how much money you need, you
multiply 1200 by 60%. To do this, you
first change 60% to a decimal. Drop
the percent sign and move the decimal
2 places to the left.
60% = .60
1200 x .60 = 720
So you will need $720 to
pay your monthly bills!

12. Let’s look at some more examples.
1. 32% of $1500 (change % to decimal)
.32 x 1500 (multiply decimal by 1500)
$480
2. 45.8% of $2650
.458 x 2650
$1213.70

13. Now it’s your turn! You can do it!
Make sure you have a calculator
handy and don’t forget to change
the percent to a decimal!
1. 35% of $2400
2. 42.6% of $1650
3. 70% of $3350
4. 66% of $4675
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14. ANSWERS:
1. $840
2. $702.90
3. $2,345
4. $3,085.50
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