|Objective||To teach/familiarize children with income statements.|
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.
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:
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.
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:
Deposits vs Withdrawals|
|Age Range||9 10 11 12 13 14 15 16 17 18|
|Tags||Logical-Mathematical Intelligence Money Income Personal Finances Saving|
|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.|