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Budget Basics – Grocery Shopping Example (1/2) Identify the Fiscal Year Establish a Budget Revenue Shortfall Leads to Amended • This Shopping Trip • Plan to use $200 from Savings + $50 from Appropriations a friend who owes me (Revenue Sources) • Friend has not yet paid you – you don’t • Total planned to spend is $250 (this is have the $50. your appropriations) • With no other revenue source, your new budgeted spending is $200 Purchase Request • Son wants a toy that costs $15 (unplanned – no budget for this) Review Budget • Is this a priority of this trip? Is Amend Budget there enough of the $200 left • Total planned groceries come to to pay for this? $180, leaving $20 in your pocket. You allow your son to use the $20 left. Approve Purchase Request • Now you have allocated $180 • As the $15 toy is less than Groceries, $20 to Son $20, you allow him to pick up the toy 6