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What's a budget?
Living in society
How do we make a budget?
What types of budgets are there?
A
budget
is the amount of money that we have to spend. Budgets
help us control how much we spend on low order products such as
food. We can also use budgets to help us when we buy high
order products.
1
Discuss this question with your partner. What do you have in common?
How do you decide how to use your pocket money?
I usually buy ... I decide what to buy by ... and then...
G
E T T I N G S T A R T E D
To make a budget,
first we should make
a list of the products
we need.
Finally,
we can go
shopping
and buy
the
products
we need.
Next, we should make a shopping plan. A
shopping plan includes information about
products and their prices. We should also
compare
products in different shops to find the
best value product. This helps us to not spend
more money than we have or more money
than is necessary.
Then we should calculate
the total amount of
money we can spend.
Household budgets
Many people use budgets for their
food shopping.
Families also
use budgets for
buying clothes
and for planning
holidays.
Business budgets
Many businesses use budgets to
plan howmuch they will spend on
rawmaterials and products. Making
a budget is very important because
a company can’t spend more that it
makes. Businesses also have to budget
for other costs, such as the salaries they pay to workers.
bread, butter,
salt, chicken,
lettuce,
tomatoes, rice
