Unlock the ProblemUnlock the Problem

Families have many expenses. If they own a home, their budget includes

paying for a home loan. They may also budget for food, transportation,

utilities (electric, water, or natural gas bills), emergencies, savings, and

charitable giving.

Essential Question?

Transp

ortatio

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Utilitie

s

Savings

Charita

ble

giving

Emer

gencie

sFo

od

Home l

oan

Doll

ars

Expense Type

0

200

400

600

800

1,000 950

500

400 400350

500

250

Monthly Budgeted Expenses

Name

17.7 Adjust a Budget

The Smith family’s net monthly income is $3,350. The graph shows the

budget for the monthly expenses. The family car needs emergency

repairs that cost $725. How might the family change their budget

to pay for the car repairs and balance the budget?

Balance the budget.

The family income is $3,350.

What is the total of the budgeted expenses?

__

How much money is budgeted for emergencies?

__

So they need __ − __ or

__ more to pay for the car repairs.

The family could try to decrease expenses,

such as ______.

The family could try to increase income

by ______.

The family could withdraw money from their __ this

month and make it up in future months.

How can you balance a budget when expenses exceed income?

Personal Financial Literacy—5.10.E Also 5.9.C

MATHEMATICAL PROCESSES5.1.A, 5.1.D

Module 17 653

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Share and ShowShare and Show

Problem SolvingProblem Solving

Mathematical ProcessesMath Talk

Charity

Books

Clothing

Music

and

Games

Savings

Snacks

Doll

ars

Expense Type

0

10

20

30

40

50

10

20

1210

28

20

Ryan’s Weekly BudgetUse the graph at the right for 1–3.

1. Ryan receives an allowance of $15 each week. He works shelving

books at the library 4 times a week and receives $20 each time.

He also gets $5 each week when he completes his chores at

home. Is Ryan’s budget balanced? Explain.

2. Ryan does not do his chores this week. How much less is his

income than his expenses?

3. Explain two ways Ryan might be able to balance his budget

when he does not do his chores.

4. Write MathWrite Math How can you determine if a budget is balanced?

5. Write MathWrite Math How can you balance a budget if the expenses are

greater than income? Give examples.

6. Think about your weekly expenses. Name an expense that is easy to

reduce and one that is not.

Explain why balancing the budget is important.

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Problem SolvingProblem Solving

Michelle’s Expenses

Rent $675

Food $800

Cable TV and Internet $45

Land-line telephone $29

Cell phone $50

Clothes $100

Savings $200

Entertainment $200

Loan payments $250

Education $150

Charitable donations $200

Pet related $75

Transportation $385

Gas/oil/electric $400

Name

Use the table for 7–9.

7. Representations Michelle is a cook. Her net income

is $3,200 per month. Is Michelle’s monthly budget

balanced? Explain.

8. Multi-Step How can Michelle adjust the

expenses in her budget to balance it? Use the column to the

right to change amounts so her budget will be balanced.

9. Michelle decides to give up her

land-line telephone and reduce her

entertainment budget to $50. She also decides

to cater two parties to earn $250 for each party.

Use Michelle’s numbers to calculate if there is

enough money left over to buy an oven for $312.

Explain your reasoning.

10. Multi-Step Alex works in a call center answering phones.

He earns $13 per hour after taxes and works 35 hours per

week. Each week, Alex is also paid $195 after taxes at his

part-time job. If Alex balances his budget, how much are

his weekly expenses?

Module 17 • Lesson 7 655

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Mathematical ProcessesM

Daily Assessment TaskDaily Assessment Task

TEXAS Test Prep 14. Natalia’s net income is $28,000 per year. She would like to have a

balanced budget. If her other expenses are three-fourths as much

as her income, how much can she save each year?

A $28,000

B $700

C $21,000

D $7,000

Fill in the bubble completely to show your answer.

Use the chart for 11–12.

11. Which of the following changes can be made to

balance Dean’s budget?

A Decrease the book purchases to $15.

B Decrease the paper route income to $15.

C Increase the movie rentals to $15.

D Increase the paper route income to $22.

12. Multi-Step In February, Dean would like to get a new cell phone plan that

costs $30 per month. He can increase his paper route to $25 per month.

He would like to continue buying books and renting movies. Which of the

following will allow him to keep a balanced budget?

A Keep his expenses the same, and increase his income by

$10 per month.

B Spend no more than $15 on books and increase his income

by $5 per month.

C Spend no more than $10 on books and $10 on movies.

D Spend no more than $15 on books and $7 on movies.

13. Sandy’s expenses are greater than her income. Which of the following

could Sandy increase in order to balance her budget?

A loan payment C charitable donations

B music downloads D hourly pay

Dean’s January BudgetIncome Expenses

Allowance: $25 Monthly cell phone: $18

Paper route: $20 Books: $20

Movie rentals: $12

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Problem SolvingProblem Solving

Hobby

Supplies Ten

nis

Lesso

nsPet

food

Charity

Savings

Doll

ars

Expense Type

0

10

20

30

Jordan’s Weekly Budget

18

12

20

15

20

Homeworkand Practice

Name

Use the graph at the right for 1–2.

1. Jordan earns $10 each weekday for chores she completes

after school. Her mother pays her $20 on Saturday and

$15 on Sunday for helping with her catering business. Is

Jordan’s budget balanced? Explain.

2. Next week, Jordan has a tennis match on Saturday and

cannot help her mother. What would be the difference

between her income that week and her expenses?

Use the table for 3–4.

Adjust a Budget17.7

Personal Financial Literacy—5.10.E Also 5.9.CMATHEMATICAL PROCESSES 5.1.A, 5.1.D

3. Jesse earns $2,500 per month after taxes, working at a car

repair shop. Is his budget balanced? Explain.

4. Sometimes Jesse works on his friends’ cars on the weekend

and earns an extra $100 per car. How can Jesse balance his

monthly budget?

Jesse’s Monthly Expenses

Rent $795

Food $750

Cable $80

Electric bill $225

Clothes $125

Savings $200

Car loan $200

Gas $150

Cell phone $55

Entertainment $100

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Module 17 • Lesson 7 657

Lesson CheckLesson Check TEXAS Test Prep

Fill in the bubble completely to show your answer.

5. Mr. Porter wants to spend an extra $150 this

weekend on a family outing to the state fair.

Which of the following could be a way to adjust

his budget to allow for the extra expense?

A Work fewer hours this week.

B Work overtime.

C Give money to charity.

D Increase gasoline usage.

6. Alexis earns $50 a day for five days this week.

Her weekly expenses are $280. How can she

balance her budget?

A Increase her income $5 each day.

B Increase her income $20 this week.

C Decrease her expenses by $30.

D Decrease her expenses by $20.

7. Which of the following changes can be made

to balance Tatiana’s budget?

A Decrease spending on sports equipment

to $20.

B Increase income from house cleaning to

$30.

C Increase spending on acting lessons to

$25.

D Decrease spending on meals with friends

to $25.

8. Multi-Step Tatiana would like to buy soccer

shoes that are on sale for $30. She will use her

sports equipment budget for part of the cost.

Which of the following plans will allow Tatiana

to have a balanced budget?

A Increase her income by $15.

B Spend only $15 on meals.

C Spend only $20 on meals and increase

her house cleaning income by $15.

D Increase her income by $60.

Use the chart for 7–8.

9. Multi-Step Duke works at a grocery store sacking groceries.

He earns $12 per hour after taxes and works 24 hours each week.

His weekly expenses total $324. How many more hours would

Duke need to work to balance his budget?

A 1 hour C 4 hours

B 2 hours D 3 hours

Tatiana’s March BudgetIncome Expenses

Allowance $40 Sports Equipment $25

House cleaning $25 Meals with friends $35

Acting lessons $15

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Monthly Expenses

Rent $800

Utilities $65

Food $400

Entertainment $300

Clothing $300

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VocabularyVocabulary

Choose the best term from the box.

1. ___ is the income that is left after taxes. (p. 629)

2. A ___ is money added to the cost of items

or services. (p. 623)

3. ____ is a portion of the value of an item,

such as land. (p. 623)

4. The total income before any taxes are taken out is ____. (p. 629)

5. ___ is money that is paid to a city, state, or the U.S. government

based on earnings. (p. 617)

Concepts and SkillsConcepts and Skills

6. The monthly income for a family is $2,000. The family’s monthly

budget is shown. Describe two ways the family could adjust their

budget to put $300 in a savings account each month. q TEKS 5.10.E

7. What are some advantages and disadvantages of using a debit card

over a credit card? q TEKS 5.10.C

Vocabulary

budget

gross income

income tax

net income

property tax

sales tax

Unit 6 Assessment

Name

Unit 6 659

TEXAS Test Prep

Monthly Expenses

Rent $900

Utilities $75

Food $600

Entertainment $300

Clothing $200

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8. A family’s monthly income is $2,100. Their monthly budget

is shown. How can the family balance their budget if their

rent increases by $250? q TEKS 5.10.E

9. Martin gets a check for $25 for his birthday on May 8th. The next day,

he spends $16 on CDs and $2.50 on stamps. Complete the table to

calculate the amount Martin has in available funds now. q TEKS 5.10.D

10. The total cost of an item is $98. If the item is purchased using automatic

payments, the buyer will need to make four payments of $26. How much

more does the item cost when using automatic payments? Explain. q TEKS 5.10.C

11. Sally got a pay raise. Her gross income increased by $500 and her net income

increased by $417. By how much did Sally’s taxes increase? q TEKS 5.10.B

Date Description Amount Received ($) Expenses ($) Available funds ($)

Balance: end of April 0

5/4 babysitting 30 30

5/6 allowance 15 45

5/6 save 5 40

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TEXAS Test Prep

Sales Tax : $24.65

Federal IncomeTax : $116.24

Property Tax : $216

Other PayrollTaxes : $61.35

Lorena's Taxes

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Fill in the bubble completely to show your answer.

12. Maura pays $0.02 in sales tax for every $1 that she spends. If Maura

buys $60 worth of items, what is the total cost? q TEKS 5.10.A

A $60

B $0.02

C $1.20

D $61.20

13. Raul pays property tax in Dallas. On which of the following might Raul

pay property tax? q TEKS 5.10.A

A clothing C salary

B office space D groceries

14. Lorena makes a list of the taxes she pays each month.

How much does she pay in payroll tax? q TEKS 5.10.A

A $418.24

B $21.35

C $177.59

D $240.65

15. Ralph makes a monthly budget. His monthly allowance is $40. He

makes $25 each month from mowing the neighbor’s lawn. Ralph’s

monthly expenses are $75. How much does he need to earn from

babysitting to balance his budget? q TEKS 5.10.F

A $75

B $10

C $50

D $35

16. Which of the following can Chaseedah use to purchase an item if she

wants to pay for her purchase at a later time? q TEKS 5.10.C

A debit card

B check

C money transfer

D credit card

Unit 6 661

TEXAS Test Prep

5-2_MTXESE086753_55A

5th pass12-13-12

LKell

Employee:Gina Sanchez

Pay period: November

2608

Detach and retain for your records.

Total earnings $1,000.00

Federal income tax $110.50

State income tax $30.75

Other taxes $18.75

Total taxes

Pay after taxes

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Fill in the bubble completely to show your answer.

17. Thepricetagsataclothingstoredonotincludethesalestaxintheprices.Chasebuys$210worthofclothingatthestore.Hehandsthecashier$250andreceivesthree$5billsand89centsinchange.HowmuchsalestaxdoesChasepayonhispurchase? q TEKS 5.10.A

A $24.11 C $40

B $15.89 D $210

18. Reemapays$11.05inpropertytaxforevery$1,000invalueofherland.IfReema’slandisworth$100,000,whatwillshepayinpropertytax? q TEKS 5.10.A

A $1,000 C $100,000

B $11.05 D $1,105

19. ThePerryfamily’smonthlynetincomeis$2,900.Theybudgeted$1,200forrent,$600forfood,$600forclothing,$500forentertainment,and$200fortravelexpenses.Whichofthefollowingactionsresultsinabalancedbudget? q TEKS 5.10.E

A Increasespendingonfoodby$100.

B Decreasespendingonfoodby$20.

C Decreasespendingonentertainmentby$200.

D Increasespendingonentertainmentby$200.

20. Gina’sgrossmonthlyincomeis$1,000.Thepaystubshowstheamountoftaxesshepayseachmonth.WhatisGina’snetmonthlyincome? q TEKS 5.10.B

Recordyouranswerandfillinthebubblesonthegrid.Besuretousethecorrectplacevalue.

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