A mathematical model for your home budget is using the general and simple 50/30/20 budgeting strategy. This is a very generalized technique that suggests breaking apart your income into three categories, Needs (50%), Wants (30%) and Savings (20%).

Start a new conversation creating a mathematical model for your home budget. Think about where your income goes each week and whether it would be considered a Need, Want or Savings. Please do not share actual currency (i.e., dollar) amounts.

Define your variables:

• Choose at least two items for the category of Need and assign a letter to represent the variable amount. Briefly describe each item.
• Choose at least two items for the category of Want and assign a letter to represent the variable amount. Briefly describe each item.
• Choose at least two items for the category of Savings and assign a letter to represent the variable amount. Briefly describe each item.

Formulate your mathematical model

Your budget model as a mathematical inequality using your variables and adhering to the 50/30/20 budgeting strategy. (Note < means "less than or equal to".)

50% Needs: Adding up all of my needs has to be less than or equal to 50% of my monthly budget.

Need1 + Need2 < 50% (Monthly Budget)

30% Wants: Adding up all of my wants has to be less than or equal to 30% of my monthly budget.

Want1 + Want2 < 30% (Monthly Budget)

20% Savings: Adding up all of my savings has to be less than or equal to 20% of my monthly budget.

Savings1 + Savings2 < 20% (Monthly Budget)