DoAssignment.ca

DoAssignment study guide

F1.3 · Create and revise sample budgets for longer-term goals

Learn to create and revise sample budgets for longer-term goals through clear examples and targeted practice.

Ontario Grade 7 Mathematics

Financial Literacy

A sample plan that can change

A budget records income and planned expenses over a stated period. It can help someone work toward a goal, but it is not a promise that every month will be identical. This lesson uses hypothetical Canadian-dollar amounts, not a recommendation about real financial products. Suppose a student earns CAD 120 per month for six months, spends CAD 70 on planned needs, and wants to save for a CAD 300 bicycle. We will calculate the planned savings and test what happens if an expense changes.

What you will learn

  • Separate monthly income, expenses, and savings.
  • Project savings over several months.
  • Revise a plan when an expense changes.

Make one monthly plan

Start with CAD 120 of monthly income. Plan CAD 70 for expenses. The remaining CAD 50 can go toward the bicycle. The budget must balance: CAD 70 + CAD 50 = CAD 120. A bar chart can compare these amounts, but it does not replace recording each transaction.

Project toward the goal

If that monthly pattern continues for six months, CAD 50 × 6 = CAD 300. This meets the sample goal exactly. The assumption that income and expenses stay unchanged is part of the model, so write it down.

Revise for a new expense

If a new monthly expense of CAD 10 appears, total expenses become CAD 80 and monthly savings fall to CAD 40. Six months then produces CAD 240. The student could extend the timeline, reduce another expense, or change the goal instead of pretending the original plan still works.

Worked example

A six-month bicycle plan

A student has hypothetical monthly income CAD 120 and planned expenses CAD 70. Can they save CAD 300 in six months?
Hypothetical monthly budget
Hypothetical monthly budgetMonthly income is CAD 120; planned spending CAD 70 and savings CAD 50 add back to CAD 120. Values are illustrative, not actual transactions.120 CADIncome70 CADSpending50 CADSaving

Monthly income is CAD 120; planned spending CAD 70 and savings CAD 50 add back to CAD 120. Values are illustrative, not actual transactions.

  1. Find monthly savings
    CAD 120 − CAD 70 = CAD 50.
  2. Multiply by months
    CAD 50 × 6 = CAD 300.
  3. Compare with goal
    The projected CAD 300 equals the bicycle target, if the stated monthly pattern holds.
Answer: Yes, under the hypothetical unchanged-budget assumption, six months reaches CAD 300.
Check: CAD 70 spent plus CAD 50 saved equals the CAD 120 income each month.

Common mistakes and how to avoid them

Calling the CAD 120 income the amount available to save.
Correction: Subtract planned expenses first, then project the remaining savings across months.

Lesson summary

  • A budget gives every dollar of income a planned use.
  • Longer-term projections depend on assumptions.
  • Revise the budget when income, expenses, or goals change.

Check your understanding

Question 1

If spending rises to CAD 80, how much can the student save in six months?
  1. CAD 240
  2. CAD 300
  3. CAD 480
  4. CAD 720
Show answer and explanation
CAD 240
CAD 120 − CAD 80 = CAD 40 each month; CAD 40 × 6 = CAD 240.

Key terms

Budget
A plan for income, spending, and saving during a stated period.
Financial goal
A target amount and purpose for which money is planned.

Continue through Grade 7 Math

View the complete Grade 7 Math Ontario Grade 7 Mathematics curriculum and lessons

About this lesson and its review

Published by DoAssignment. This reviewed lesson follows Ontario Grade 7 Mathematics, expectation F1.3. It is a study resource, not an official curriculum publication.

Before publication, content is checked for structure, mathematical or chemical notation, calculations, course boundaries, and readability. Errors can still occur, so corrections are welcomed.

Official curriculum reference

Report a correction or ask a question