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Ontario MTH1W · Financial Literacy · F1.4

Build and adjust a budget

Create, modify, and justify a budget when income, expenses, or goals change.

The core idea

A balanced budget accounts for income, fixed costs, flexible costs, and savings. When something changes, make the trade-off visible and explain why the revised plan still serves the goal.

Learning example

Find the unallocated amount

A student has $160. They budget $45 for transportation, $30 for a phone plan, and $55 for savings. How much remains?

  1. 1

    Add the planned amounts: 45 + 30 + 55 = 130.

  2. 2

    Subtract planned spending and saving from income: 160 − 130.

  3. 3

    The unallocated amount is $30.

Answer$30 remains.

A common mistake

Treating savings as money that disappeared. Savings is still part of the budget and must be included in the allocation.

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