Directions: Briefly answer the questions below using layman’s terms.

1. What do you think is the best budgeting method to help you create a personal budget? Justify
your answer using a real-life scenario.

- Based on my personal experience, I think the 50-30-20 method is my most effective budgeting
method. The 50-30-20 method refers to the percentage of priorities when I am budgeting my
personal finance. 50 was a percentage allotted for all of my needs, while 30% was for my savings
and the remaining 20% was for my wants. I used this method since high school until now when I
am in college. In my opinion, this method of budgeting is kind of use not just by employees, but
especially by students who budget their monthly allowance.

2. Create a realistic family budget for a one-month period.

- Our budget last month is 19,100 pesos which cover all of our needs. Our electric bill is 2,000 pesos,
and the water bill is 1,500 pesos. Our internet bill is 1,600 pesos. Our budget for groceries is 4,000
pesos, while our expenses for a daily meal amounting to approximately 9,000 pesos, and for our
other expenses, we have allotted 1,000 pesos in our budget.