1. In the Red or in the Black
DIRECTIONS: Now that you’ve done the calculations and have finished your Living
on a Budget project what’s left? If you’ve managed to spend less than what you bring in,
congrats – you’re in the black. If not, and you’re coming up short for the month, you’re
considered to be in the red and need to make some adjustments to, at the very least, balance
your budget – unlike our federal government which continues to pile more debt on top of prior
debt year after year. So what do you do? Get out your pencil and calculator and start
trimming!
No. 1 – First, identify the expenses in your budget chart as either variable or fixed (you
need to know what these are). You will need to know these in order to complete No. 2. (5
points)
No. 2 – Whether you are in the red or the black where can you realistically make
budget cuts? If you are in the red, where can you identify expenses that can be trimmed, or
cut out, to get your budget back in balance? If you are in the black, how did you manage to
do so? In both cases you need to make your budget balance without cutting your savings you
are stashing away. (5 points)
No. 3 – Now it is time to explain what you have learned with this lengthy budget
project. Write a well-organized summary of just what you have learned and how you plan to
utilize this project as you prepare for college or private civilian life in the near future. There
is no particular length but be sure to refer to each of your major expenditures and how you
decided what to spend on each and if it turned out to be appropriate or not, and why. In
your response, too, explain how the project – Living on a budget – has, or has not,
inspired you to seriously consider using a budget in your real life, either now or in the future.
(20 points)
No. 4 – Your final part – A HOMEWORK ASSIGNMENT - is to take your
finished overall budget project and share it with your parents/guardians and get their
feedback on the assignment and what they think about it and the real world connection it
hopefully will make for you about spending and saving your hard-earned money. (10
points)