Monthly Income Statement

ObjectiveTo teach/familiarize children with income statements.
Description Monthly Statement

Using either a digital program such as Microsoft Excel, Microsoft Word, Quicken or a 'hand-made' table, keep track of your monthly income and expenses with an income statement sheet. 

Steps:

1. Choose a way to track your monthly income. You could set up a spreadsheet or table in Microsoft Excel or Microsoft Word. You could use a personal finance program such as Quicken or Quickbooks. If you choose to use excel here is a spreadsheet template that you can use to track your income.

2. Enter your income from your job, allowance, chores or you business.

3. Estimate your income from gifts (Holidays, Birthdays, Other life events). Enter the amounts into your table or spreadsheet.

4. Estimate the amount of income you will make from other sources (returning bottles, selling items, investments, rolling coins). Enter the approximate amounts in your table or spreadsheet.

5. Gather all of your bills and receipts. Enter your expenses into your table or spreadsheet. Remember to estimate how much you will spend on things like food, entertainment, clothes, hobbies etc.

6. Subtract your expenses from your income and enter the total money left over.

7. Answer the following questions for yourself:

  • Are you making enough money to pay all of your bills and to buy/do the things you want?
  • If you are, what are you doing with the extra money? Should you invest it your business? Put it towards a savings goal (a car/cell phone/electronics/clothes/a trip/University or College)?
  • If you are not making enough, how can you cut your expenses? You could get rid of all unnecessary bills, decrease your personal spending, or find better deals for the services that you use.
  • How could you increase your income? You could start a business, get a better paying job, or work more hours.
  • How could you put your money to better use? Is there a way you could earn more interest, can you create a passive income, or could you move your savings to something that will make you some interest?

 

Note: The benefit to using Quicken or Quickbooks is that you can download your bank statement right into the program and accurately track your income, expenses and savings all at the same time.   

 

 

Complete When

Mark this activity as complete when you have completed a table or spreadsheet which gives you a full idea of how much income you bring in on a monthly basis.

Track your progress and earn badges!

This activity is included in the following:

Attachments
Prerequisites Deposits vs Withdrawals
Average Rating
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Age Range 9    10    11    12    13    14    15    16    17    18   
Activity Type Routine
Tags Logical-Mathematical Intelligence  Money  Income  Personal Finances  Saving 
CreatedCindyCindy
Last ModifiedRobRob

References

Reference Reference Note  
BMO SmartSteps for Parents Here is a monthly budget calculator that kids could use for the purpose of calculating their monthly income and expenses. It will also calculate how much of a surplus or deficit they incur each month. 

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