Name: Date:
Developing a Budget Simulation
Overview: In this activity, you will learn how to use Intuit Budgeting to analyze
income and spending and set up a budget. You’ll do so using a Building a Budget
Simulation.
Part 1: Check for Understanding
1. Why is it important to track weekly spending as a part of developing a
budget?
2. List three different examples of categories that you or your family can have
in your budget.
3. When developing a budget, it’s important to evaluate your income.
Financial experts suggest a budget should be based on net income (after
deductions and taxes) and not gross income (after deductions and taxes).
Review an example pay stub for Oliver below and answer the questions
that follow.
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a. What is the total pay (gross income) for this one-week pay period?
b. What are the four taxes deducted? List the name of the tax and the amount
from this current pay period.
c. What is the net pay (after taxes and deductions are taken out) for this pay
period?
d. Assuming the individual receives four of these identical paychecks each week
for a month, what is the monthly net pay that the individual can use to create
a budget?
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Part 2: Developing a Budget Simulation
In this simulation, you’ll explore Intuit Budgeting, an online tool used by a fictional
person named Isaiah. Isaiah is a college graduate who has income from a job and
many fixed and variable expenses each month. Isaiah Isaiah uses this app to review
his spending. You will help him develop a budget.
For each of the six questions in this simulation, read the directions on the right side
of the screen. You will search through and interact with the budgeting tool to
complete each question.
Click on the following to access the Building a Budget Simulation.
Part 3: Reflection
Note: You may choose to go through the simulation a second time to complete
these questions.
4. Isaiah uses the app to review income over time. How do you think changes
in income would impact your personal budget? What if your income
increases? What if it decreases?
5. Isaiah also uses the app to review trends in spending by category. For
Isaiah, he spends the most on his home (rent) and then the next most on
auto and transportation costs.
If you were to review trends of your spending over the last 3 months, what
are the top three categories of spending for you? You can include money
that others like your family spend on things for you, or list things that you
purchase on your own.
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6. There are many ways to create a budget: using a spreadsheet, pencil and
paper, or using online tools and apps. After creating a budget, you will
probably want to review it regularly. Which do you prefer for creating a
budget? Why?
7. Budgeting allows individuals to reach their goals by not overspending in
order to save money and avoid debt.
List at least two short-term goals and two long-term savings goals with the
anticipated timeline.
Goal Description Timeline
Short-
term
Short-
term
Long-
term
Long-
term
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