Stage 1 Essential Mathematics

Assessment Type 2: Folio

Creating a Household Budget

The Task
You have been living with 1 friend and decided to make a weekly household budget to see if you
are saving or losing money.
You have made a list of all the ways you:

 Earn Money (income)

 Spend Money (expenses).
All information for the mathematical investigations is provided over the page. Read the
information below about the report you will create, and then get started!

The Report
You will complete a report to submit to your teacher which will include the following:
Introduction
In your own words clearly explain what a budget is and why it is important.

Mathematical Calculations
Use the information on the following page to calculate the surplus or deficit for the weekly budget.

 You must show all working for Part 1 and 2 (including any equations used and the steps in the
calculation).
 If you make a spreadsheet for Part 1, you must provide a copy of the formulas used in the
spreadsheet in an appendix.
 Any work you complete on the extension activity.

Discussion
Clearly state if you are in a deficit or surplus and what these terms mean. Make sure that you refer to
figures (values) from your calculations in your discussion.

You should also explain which items in your budget you wish to remove in order to save more money and
why you have chosen them.

Conclusion
Comment on the usefulness of a budget. Clearly state how much you are saving per week and what you
would do with the money.

Your entire report should not be more than a maximum of 6 A4 pages.

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The following is a list of income and expenses you’ve created.

Name Amount Name Amount

Rent $600 per fortnight Car Loan $280 per month
Personal Items $60 per fortnight Running Cost $40 per week
Entertainment $280 per month Registration/Insurance $700 per year
Food $230 per week Salary $1200 per fortnight
Internet $190 per month Mobile Phone $50 per month

***Your budget must also consider quarterly electricity and water bills which are shown on the
next two pages.***

Part 1 Creating the Budget

(i) Split the list above into two groups: “Income” and “Expenses”, listing each item to appropriate list.
(ii) Showing all of your working out, and the equations you have used, convert all amounts into weekly
amounts and work out the total surplus or deficit for the budget.

Part 2 Saving Money

(i) When looking at expenses you can split them up into two categories:
 Fixed expenses are unavoidable costs.
 Discretionary expenses are things that can be altered to make sure the expenses total is less
than the income total.
State which items in your budget are fixed expenses and which are discretionary.
(ii) Suggest other ways you may save money in your budget giving suggestions for both income and
expenses.

Extension

You have decided to cut down on your electricity and water bills. Investigate ways that you could cut down
on these bills. Make sure you clearly explain how each suggestion would lower the cost.

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Assessment Design Criteria

Concepts and Techniques

CT1 Knowledge and understanding of mathematical information and concepts
CT4 Use of electronic technology to find solutions to practical problems.

Reasoning and Communication

RC1 Interpretation of mathematical results
RC4 Communication of mathematical ideas and information.

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 Performance Standards for Stage 1 Essential Mathematics
Concepts and Techniques Reasoning and Communication
Knowledge and understanding of mathematical Accurate interpretation of mathematical results in
A information and concepts in familiar and familiar and unfamiliar contexts.
unfamiliar contexts.
Highly effective use of mathematical reasoning to
Highly effective application of mathematical skills draw conclusions and consider the appropriateness
and techniques to find efficient and accurate of solutions to routine and complex problems.
solutions to routine and complex problems in a
variety of contexts. Proficient and accurate use of appropriate
mathematical notation, representations, and
Gathering, representation, and interpretation of a terminology.
range of data in familiar and unfamiliar contexts.
Clear and effective communication of mathematical
Appropriate and effective use of electronic ideas and information to develop logical and
technology to find accurate solutions to routine concise arguments.
and complex problems.
Knowledge and understanding of mathematical Mostly accurate interpretation of mathematical
B information and concepts in familiar and some results in familiar and some unfamiliar contexts.
unfamiliar contexts.
Effective use of mathematical reasoning to draw
Effective application of mathematical skills and conclusions and consider the appropriateness of
techniques to find mostly accurate solutions to solutions to routine and some complex problems.
routine and some complex problems in a variety
of contexts. Mostly accurate use of appropriate mathematical
notation, representations, and terminology.
Gathering, representation, and interpretation of
data in familiar and some unfamiliar contexts. Clear and appropriate communication of
mathematical ideas and information to develop
Mostly appropriate and effective use of electronic some logical arguments.
technology to find mostly accurate solutions to
routine and some complex problems.
Knowledge and understanding of simple Generally accurate interpretation of mathematical
C mathematical information and concepts in familiar results in familiar contexts.
contexts.
Appropriate use of mathematical reasoning to draw
Application of some mathematical skills and conclusions and consider the appropriateness of
techniques to find solutions to routine problems in solutions to routine problems.
familiar contexts.
Generally appropriate use of familiar mathematical
Gathering, representation, and interpretation of notation, representations, and terminology.
data in familiar contexts.
Appropriate communication of mathematical ideas
Generally appropriate and some effective use of and information.
electronic technology to find solutions to routine
problems.
Basic knowledge and some understanding of Some interpretation of mathematical results in
D simple mathematical information and concepts in some familiar contexts.
some familiar contexts.
Attempted use of mathematical reasoning to
Application of basic mathematical skills and consider the appropriateness of solutions to routine
techniques find partial solutions to routine problems.
problems in some contexts.
Some use of familiar mathematical notation,
Some gathering, representation, and basic representations, and terminology.
interpretation of simple data in familiar contexts.
Attempted communication of simple mathematical
Some appropriate use of electronic technology to ideas and information.
find solutions to routine problems.

Limited knowledge or understanding of Limited interpretation of mathematical results.

E mathematical information or concepts.
Limited awareness of the use of mathematical
Attempted application of basic mathematical skills reasoning in solving a problem.
or techniques, with limited accuracy in solving
routine problems. Limited use of mathematical notation,
representations, or terminology.
Some gathering and attempted representation of
simple data in a familiar context. Attempted communication of an aspect of
mathematical information.
Attempted use of electronic technology in to find a
solution to a routine problem.

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