Goal:

The goal is to apply your knowledge of linear functions to create a weekly budget plan that relates your income to your expenses. This will help you manage your finances effectively and develop important life skills.

Role:

You are a financial advisor for high school students. Your task is to help them create a personal budget that balances their income and expenses using linear equations.

Audience:

A group of high school students who need guidance on managing their weekly budget.

Situation:

You receive a weekly allowance and may have part-time jobs. You need to allocate your income to various expenses such as food, transportation, entertainment, and savings. Your task is to develop a budgeting function that ensures you stay within your financial limits.

Products:

A detailed budget plan.

A linear equation that models your weekly budget.

Graphical representation of your budget.

Analysis of how changes in income or expenses affect your budget.

Task Details

Step 1: Identify Income and Expenses

•

• List all sources of weekly income:

• Allowance: __________

• Part-time job earnings: __________

• Any other sources: __________

•

• Categorize and list all weekly expenses:

• Food: __________

• Transportation: __________

• Entertainment: __________

• Savings: __________

• Any other expenses: __________

 

Step 2: Create a Linear Equation

•

• Let I be the total weekly income.

• Let E be the total weekly expenses.

Step 3: Graph the Budget Function

•

• Income (I) on the y-axis.

• Expenses (E) on the x-axis.

Plot the points representing income and expenses.

Draw the line I=E

Shade the feasible region where I≥E

Step 4: Analyze Changes in Income or Expenses

•

• If your allowance increases, then you will have a new total income.

• New total income:

• New linear equation:

• Graph and analyze the new situation.

Step 5: Prepare the Budget Plan and Presentation

1.     

•

• Purpose of the budget plan

• Overview of income and expenses

2.     

•

• Detailed list of income sources and expense categories

• Explanation of the budgeting equation

3.     

•

• Graph of the budgeting equation

• Feasible region analysis

4.     

•

• Impact of potential changes in income and expenses

5.     

•

• Summary of the budget plan

• Recommendations for maintaining a balanced budget

6.     

•

• Graphs and charts

• Detailed calculations