Budgeting and Unit Price

What is Unit Price?

Unit price is the cost per single unit of measure.

Common units:

• Price per item
• Price per ounce
• Price per pound
• Price per liter

Why useful? Compare different sizes and brands!

Calculating Unit Price

Unit Price = Total Price / Number of Units

Example 1: Price Per Item

12 apples cost $6. What's the price per apple?

Calculate: $6 / 12 apples = $0.50 per apple

Answer: 50¢ per apple

Example 2: Price Per Ounce

20 oz bottle costs $2.40. What's the price per ounce?

Calculate: $2.40 / 20 oz = $0.12 per oz

Answer: 12¢ per ounce

Example 3: Comparing Sizes

Small: 16 oz for $3.20 Large: 24 oz for $4.32

Small unit price: 3.20 / 16 = $0.20 per oz Large unit price: 4.32 / 24 = $0.18 per oz

Answer: Large is the better value (lower unit price)

Finding Better Deals

Lower unit price = Better deal!

Example: Cereal

Brand A: 15 oz for $4.50 Brand B: 20 oz for $5.60

Brand A: 4.50 / 15 = $0.30 per oz Brand B: 5.60 / 20 = $0.28 per oz

Answer: Brand B is cheaper per ounce

Example: Bulk Buying

Individual: 1 candy bar for $1.25 Pack: 8 candy bars for $8.00

Individual: $1.25 each Pack: 8.00 / 8 = $1.00 each

Savings: $0.25 per bar (or $2.00 total for 8)

When Bigger Isn't Better

Consider:

• Will you use it before it expires?
• Do you have storage space?
• Is it actually cheaper per unit?

Example: Fresh Fruit

Small: 3 lb for $6 ($2/lb) Large: 10 lb for $18 ($1.80/lb)

Better unit price: Large BUT: If 5 lb will spoil, better to buy small!

What is a Budget?

A budget is a plan for spending money.

Shows:

• Income (money coming in)
• Expenses (money going out)
• Savings

Goal: Spend less than you earn!

Creating a Simple Budget

Example: Monthly Budget

Income: $100 (allowance)

Expenses:

• Snacks: $20
• Apps/Games: $15
• Movies: $10
• Gifts: $10
• Total expenses: $55

Savings: $100 − $55 = $45

Budget is balanced: Income > Expenses ✓

Needs vs. Wants

Needs: Must have

• Food, housing, clothes, school supplies

Wants: Nice to have

• Games, toys, entertainment, new phone

Smart budgeting: Cover needs first, then wants!

Making Purchasing Decisions

Questions to ask:

1. Do I need this or want this?
2. Can I afford it?
3. Is this the best price?
4. Will I use it?
5. Can I wait for a sale?

Example: Buying a Game

Price: $60 Budget available: $45 Options:

• Wait and save more
• Look for used/sale
• Choose cheaper game

Comparing Total Cost

Consider ALL costs:

• Base price
• Tax
• Shipping
• Accessories needed

Example: Two Stores

Store A: $50 + $10 shipping = $60 Store B: $55 + free shipping = $55

Better deal: Store B (lower total)

Calculating Savings

How much will you save?

Example: Meal Planning

Eating out: 5 lunches × $8 = $40 Pack lunch: 5 lunches × $3 = $15

Weekly savings: $40 − $15 = $25 Monthly savings: $25 × 4 = $100

Finding Percentage of Budget

Percent = (Category / Total Budget) × 100%

Example: Entertainment Budget

Total budget: $100 Entertainment: $25

Percent: (25 / 100) × 100% = 25%

Answer: 25% of budget goes to entertainment

Real-World Applications

Grocery shopping: Compare brands and sizes

• Store brand vs. name brand
• Family size vs. regular

Phone plans: Compare cost per GB

• Plan A: $40 for 5 GB
• Plan B: $50 for 8 GB

Utilities: Track usage and costs

• Cost per kilowatt-hour
• Water cost per gallon

Subscriptions: Monthly cost vs. yearly

• Monthly: $10 × 12 = $120/year
• Yearly: $100/year (saves $20)

Tips for Smart Shopping

Do:

• Check unit prices on shelf labels
• Compare sizes and brands
• Use coupons when available
• Buy generic for basic items
• Plan purchases ahead

Don't:

• Buy just because it's on sale
• Ignore expiration dates
• Forget to compare quality
• Impulse shop

Practice