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Smith's rent $300.00
Car insurance $50.00
All utilities $75.00
Phone $30.00
Groceries $200.00
Gasoline $50.00
Clothing $20.00
Sundries $15.00
Laundromat $25.00
Movie Rental $5.00
Eating out $25.00
Sue and Dave try and save $50.00 per month.
They give $50.00 per month to their church.

1. Do the Smiths have any money left over At the end of the month? if S0 how much?

2. What percentage of their total income do they spend an fixed expenses?

3.If the Smiths were to quit eating out, how much money would they save?

4. What is the ratio between money saved per month And total money spent?

5. If the Smiths want to save 10% of their income per month, how much would they have to have?

TITLE:
Planning a Budget/ Part 2 of 3, Completing a Monthly Budget Form.

OBJECTIVES:
Students will understand the benefits of keeping a budget and will understand required math.

MATERIALS LIST:
Worksheets, lesson notes, calculator if desired.

TARGET AUDIENCE:
All ABLE 5+ Math

INSTRUCTIONAL GROUP SIZE:
Small

ACTIVITY DESCRIPTION:
1. Determining differences between luxuries/ necessities.
2. Writing a monthly budget form.
3. Applicable Math- percentages, ratios, fractions.

Dave works at a local factory. His gross pay is $800.00 per month His net pay is $623.00 per month. How will he pay for the following items? Mark G for gross pay and N for not pay.

Mortgage __
Social Security tax __
Union Dues __
Groceries __
State Income tax __
Car payment __
Pension __
Federal income tax __
Entertainment __
Clothes __

I Why have a Budget?
A. Vocab

1. Budget - a spending plan
2. Expenses - reasons for spending money, name of money you spend
3. Fixed Expenses - expenses that stay the same every month. Money you must spend in a certain amount. 4. Flexible Expenses - expenses that change from month to month.
5. Income - money you earn or receive

B. Discussion

1. Why have a budget? To manage money
a. helps you live as well as possible on the money you have
b. smarter than having no plan
c. lets you see where and how you spend your money
d. lets you save for future bills
e. lets you avoid problems immediately after payday
f. lets you compare your income to expenses, to better use your money

C. How to:prepare a budget

1. Figure income
2. List expenses
3.Add fixed and flexible expenses
4. Subtract expense from income
a. if money is left over, good b. if money is not left over, change budget

II Paycheck
A. Discussion / Vocab.

1. Deductions examples:
a. social security - money saved until you are a senior citizen or when you become disabled
b. federal withholding tax - money to the federal government
c. state withholding tax - money to the state of Ohio
d. Hospitalization or other insurances
e. pension/retirement
f. union dues
g. hold or liens
2. Gross income
a. amount earned before deductions are subtracted
b. when you apply for a job, the pay is listed as gross income
3. Net income
a. amount earned after deductions
b. take home pay

B. Pay check handouts

1. Gross pay--here called gross earnings is $800.00
2. Tax description
a. Discuss what each is
3. Discuss year to date fed. withholding etc. 4. complete worksheets

1. What is the total amount of taxes deducted?
2. What is the net pay?
3. The deductions are what percent of gross pay?
4. The net pay is what percent of gross pay?
5. What percent of Y.T.D gross pay are the following:

a. YTD OASDI
b. YTD HI
c. YTD FED W/H
d. YTD ST W/H
e. YTD LOCAL

OBJECTIVES:
Students will understand the benefits of keeping a budget.

MATERIALS LIST:
Lesson notes, worksheets

TARGET AUDIENCE:
All ABLE

INSTRUCTIONAL GROUP SIZE:
small

ESTIMATED TIME:
1 Hour

ACTIVITY DESCRIPTION:
1. Discussion of goal setting.
2. Worksheets on individual goals.

IV. Budget Goal Setting
A. Vocab.

1. Goal - something you want and try to get
2. Need - something you must have
3. Want - something for which you wish or desire

B. Discussion

1. a budget can help you pay for the things you need and save for the things you want.
2. different people have different needs and wants.

a. if a person doesn't have a winter coat, this is a need
b. if a person desires a winter coat for style, this is a want
3. it is important to know the difference between needs and wants, because you must pay for your needs before your wants
4. but knowing your wants will help you set goals
a. wants can become goals
b. money can be saved if goals are set
5. make a plan to get things you want
a. set a date for your goals
b.divide goals
1. present goals - things wanted soon
2.near goals - things you want within the year
3. future goals - things that are far off but that you need to save for now--retirement, college, home.

C. Complete worksheets Goals

	Cost		Monthly Savings		When can I buy?
Present goals
1.
2.
3.
Near goals
1.
2.
3.
Future goals
1.
2.
3.

	NEEDS ( I MUST HAVE)		WANTS ( I WOULD LIKE TO HAVE)
Cigarettes
Stereos
Medical care
Pop
Movie tickets
Food
CDs
Video rentals
Clothing
Telephone
Preschool
Transportation
TV
New clothes
Baby sitter

TITLE:
Shopping for Clothing and Housewares

OBJECTIVES:
Adding, subtracting, multiplying, dividing, and interchanging fractions, decimals, and percents; Estimating and Rounding; Computing sales tax,; compute discounts; using shortcuts and mental math while shopping.

MATERIALS LIST:
Handouts and local discounts or department store advertisements.

TARGET AUDIENCE:
Multilevel GED® or ABE

INSTRUCTIONAL GROUP SIZE:
Large, Small, Individual

ESTIMATED TIME:
1/2 to 1 hour per handout. Optional- Sales tax chart with local sales tax.

ACTIVITY DESCRIPTION:
Some instruction and prior knowledge of fractions, decimals, and percents needed. Discuss advertisements and how they encourage shoppers to come to their store. , Discuss value of reading carefully to see what limits and dates apply. Discuss comparison shopping. Discuss tax rate chart. Easiest handout is "Estimating When Shopping." Work in groups or individually. Use other handouts at following sessions as desired.

RESOURCES/SOURCES USED:
Essential Math for Life, Glencoe, books 2, 3, 8; Connections, Steck-Vaughn; Lifeskills: Developing Consumer Confidence, Contemporary Ch. 3

Estimate When Shopping

BOXES $5.29 LARGE HANGING PLANT $I5.99
BASKET $7.99FRAME $6.49 WATERING CAN $2,79
FLOWERS $4.19 HOUSE PLANT $.99

1. Which 2 items cost less than $4.00?

2. Which 2 items cost about $5.00?

3. Which 2 items cost about $7.00?

4. If you have $10.00, can you buy the basket and 3 house plants?

5, To the nearest dollar, estimate how much the boxes, the frame, and the hanging basket will be.

6. What would be some reasons that estimating is a useful skill?

7. In what shopping situations do you feel estimating would be helpful?

Sales Tax
Sales tax is applied to some things we buy. States can decide the amount of sales tax and the items which will have the tax applied. This money is used by the state for such things as police and highway patrol, the repair and maintenance of roads and highways, and education. Local communities can add a small amount to the tax for local projects, Sales taxes are figured in percentages and added to the purchase price. The store is required to turn the money over to the state.

Step 1: Multiply the price by the rate of the tax. $5.85 (original price)

$5.85(original price)
x . 05 (rate of tax--5%)
$.2925(tax)

Step 2: Add the tax to the original price.

$5.85 (original price)
+ .30 (tax)
$6.15 (total price including tax)

$. 2925 = .30 (State sales tax is always rounded Up.)

Find the sales tax and the total price including tax.

Original price		Sales Tax		Amount of Tax		Total Price
Shoes, $55.00		6%
Shirt, $20,00		6%
Picture frame, $7.95		6%
Blanket, $31.95		6%
Frying pan, $15.49		6%
Hose, $10.00		6%
Rake, $8.99		6.5%
Lamp, $25.00		6.5%
Jacket, $59.99		6.5%
Car, $14,550		6.5%

What might be an advantage to shopping for a car in a different state or county? Figuring Sale Prices Shopping for items on sale is a great way to save money. When you are looking at the discount being offered, it is important to be able to figure how much will be saved and how much the item will cost with the discount.

Example: A coat regularly sells for $79.00 This week it is on sale for 15% off.

1) How much can you save by buying the coat on sale? $11.85
2) What is the new sale price? $67.15

The following items are on sale for 25% off the regular price. Find the amount saved and the new sale price.

Swing set $115 1) Amount saved 2) New Price	Saw $19.83 1) Amount saved 2) New Price
Shovel $7.99 1) Amount saved 2) New Price	Ceiling light$57.86 1) Amount saved 2) New Price
Clothes Hamper $5.97 1) Amount saved 2) New Price	Cassette/radio headphones $9.97 1) Amount saved 2) New Price

Shortcut for Computing the Sale Price
Stores offering a discount will usually express the sale as "25% off or "1/4 off." This means that to learn what the new price is you might use 2 steps: Compute the discount and then subtract from the original price.

Here is a shortcut: If the discount is "25% off," then the price you will pay will be 75% of the original price. If the discount is "1/4 off," then the price you will pay Will be 3/4 of the original price. You simply multiply the original price by 75% or 3/4.

Shortcut: Subtract the percent discount from 100%; then multiply your answer by the original price. Or, subtract the fraction discount from 1; then multiply by the original price.

Example:

Original price is $10.00 Discount is 25%. New price is 75% x $10.00 = $7.50.
Original price is $10.00 Discount is l/4. New price is 3/4 x $10.00 = $7.50.

Use the shortcut to find the new price on the following items:

Four canisters $25.00 Discount is 20% Discount is 40% Discount is 75%	Sunglasses $7.99 Discount is 33 1/3% Discount is 35% Discount is 15%
Ceiling fan $32.99 Discount is 1/4 Discount is 1/5 Discount is 3/4	Sauce pot $18.00 Discount is 1/3 Discount is 2/3 Discount is 1/8

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