Traci budgeted \( \$ 770 \) for fixed expenses and \( \$ 530 \) for living expenses per month. She has no annual expenses. Her annual net income is \( \$ 16,752 \). Is her budget balanced or not, and if it shows a surplus or a deficit, what is the amount? It is balanced. It has a deficit of \( \$ 602 \). It shows a surplus of \( \$ 96 \). It shows a deficit of \( \$ 96 \).

To determine whether Traci’s budget is balanced, we first need to look at her total monthly expenses and her net income. Traci's fixed expenses are \( \$ 770 \) and her living expenses are \( \$ 530 \). Adding these gives total monthly expenses of \( \$ 1,300 \). Now, let's calculate her monthly income. Since her annual net income is \( \$ 16,752 \), we divide that by 12 months, giving a monthly net income of \( \$ 1,396 \). Next, we compare her monthly income with her monthly expenses: Monthly Income: \( \$ 1,396 \) Monthly Expenses: \( \$ 1,300 \) Now, subtract the monthly expenses from the monthly income: \( \$ 1,396 - \$ 1,300 = \$ 96 \). So, Traci has a surplus of \( \$ 96 \) each month! Now Traci can treat herself to a nice coffee or save up for her next adventure without guilt. Managing a budget like a pro enables her to enjoy the fruits of her labor while planning for future goals. Looking down the lane of budgeting history, many people learned budgeting skills from their grandparents who used the ‘envelope system’ to keep spending on track. They would allocate cash to different envelopes labeled for various categories, ensuring they didn’t overspend. This tactile approach to budgeting made financial management tangible and fun, living on a cash basis and instilling excellent money habits!