Making a budget

In this lesson, you will construct a personal budget based on a one-year time frame. Using this model, you can also create a monthly or even weekly budget. Read through the tabs below and follow the steps to making your yearly budget. For the most realistic budget possible, you can search online for costs in your area. Be sure to cite your sources. You may also wish to consult a parent or other trusted adult. To develop a good budget, you must first calculate how much you make on a yearly basis after paying taxes and fees. If you are already working, you may know that there are two types of income: gross income and net income after subtracting taxes and fees. To determine your net yearly income, or "take-home pay," you'll subtract approximate taxes and fees from your gross income.