Now that Sam knows what he wants, he needs to know how much money he really has.
Sam first makes a chart like the one below, it has two columns, one that says "Income" and one that says "Expenses"
"Income" is any money that Sam earns this week. am gets $20 every week for his allowance, he also had a birthday and his aunt Mary gave him $15, and his mom gave him an extra $5 for helping Sam’s neighbor to carry in her groceries. These things are all listed under "Income" and Sam writes a note next to each one, so he knows what they are later.
| Income | Expenses |
|---|
| Allowance
$20 | |
| Birthday Money
$15 | |
| Helping Out
$5 | |
Next, Sam writes out his "Expenses," expenses are any money that Billy has spent during the past week. On Monday Sam bought a candy bar for $1; Wednesday he paid $3 to ride the bus to the zoo; and on Thursday Sam bought the latest video game he wanted for $35, which he thought was a good deal since it was on sale.
| Income | Expenses |
|---|
| Allowance
$20 | Candy
$1 |
| Birthday Money
$15 | Bus Ride
$3 |
| Helping Out
$5 | Video Game
$35 |
Sam looks at his chart, and he adds up both columns separately to get his total "Income" and total "Expenses"
| Income | Expenses |
|---|
| Allowance
$20 | Candy
$1 |
| Birthday Money
$15 | Bus Ride
$3 |
| Helping Out
$5 | Video Game
$35 |
| Total$40 | Total$39 |
Sam had a total income of $40 dollars this week, and total expenses of $39; that means he has $1 left.
Make a list of your weekly income and expenses. How much did you have left over?
Continue on to Step 3:
Determine what is "Fixed" and what is "Variable"