Actions to Take When Expenses Exceed Income

T.I.P.S.

Students must be able to describe options they might do to balance a budget when they realize that they are about to spend more money than they have available.

Example

Your family’s car has started making a strange noise under the hood. The mechanic says that it will cost $400.00 to fix it, and it should not be driven any more until it is fixed. This $400.00 repair is not in the budget. How can the budget be adjusted to cover the cost of the repair?  

Hint 

Possible Solution 

TEKS

Supporting Standard 5.10 Personal financial literacy. The student applies mathematical process standards to manage one's financial resources effectively for lifetime financial security. The student is expected to: (E) describe actions that might be taken to balance a budget when expenses exceed income

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