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Budgeting with Excel Formulas

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Budgeting with Excel Formulas (Solution)

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📚 Part 1: Guided practice — SUM and Subtraction

Step-by-step instructions (follow in Excel):

1. Open Excel and start a new blank sheet.

2. Type the headings and values below into these cells:

B1: Monthly Income ($) — $3,500

B2: Laptop repayment — $75

B3: Software subscriptions — $60

B4: Mobile data — $45

B5: Cloud storage — $20

B6: Accessories (mouse/keyboard) — $40

3. Click cell B7 and type the SUM formula to total the expenses. Press Enter.

Hint: Use =SUM(B2:B6) to add all the expenses together.

4. Click cell B8 and type a subtraction formula to find the remaining balance (Income minus Total expenses). Press Enter.

Hint: You can use =B1-B7 to calculate the remaining balance.

1. Which formula correctly adds the expenses in cells B2 to B6?

SUM(B2:B6)

=SUM(B2:B6)

=ADD(B2 to B6)

=SUM[B2:B6]

Hint: Look for the formula that starts with an equals sign and uses the correct syntax for the SUM function.

2. If you type =SUM(B2:B6), which cells will Excel add? (Select all that apply)

B1

B2

B3

B4

B5

B6

Hint: Remember, the SUM function only includes the cells specified in the range B2 to B6.

3. Write the exact formula you would type in cell B7 to total the expenses B2 to B6:

Hint: Start with an equals sign and use the SUM function with the correct cell range.

4. Using the numbers given above, calculate the total expenses (show your working):

Hint: Add each expense together step by step to find the total.

5. Write the exact subtraction formula you would type in cell B8 to find the remaining balance (Income in B1 minus total expenses in B7):

Hint: Use the format =B1-B7 to find the remaining balance.

6. Calculate the remaining balance after expenses (show your working):

Hint: Subtract the total expenses from your monthly income.

✏️ Part 2: Understanding & Extra Support

7. In one sentence, why is using =SUM(range) in Excel better than adding numbers by hand? Give two short reasons.

Hint: Think about accuracy and efficiency when using Excel versus manual calculations.

8. Explain what the colon ( : ) means inside a SUM formula, for example in =SUM(B2:B6):

Hint: The colon indicates a range of cells. What does that mean for the cells included in the calculation?

Detailed explanation for extra support:

= — starts every formula so Excel knows you are entering a calculation.

SUM() — a function that adds all numbers inside the brackets. Example: =SUM(B2:B6) adds B2, B3, B4, B5 and B6.

: (colon) — shows a range from the first cell to the last cell (B2 to B6). Excel includes every cell between them.

- (minus sign) — subtraction operator. Example: =B1 - B7 subtracts the number in B7 from the number in B1.

Glossary — match the term to its meaning (write the letter in the box):
A. =
B. SUM()
C. :
D. -
1. Adds a group of cells
2. Starts a formula
3. Subtraction operator
4. Indicates a range of cells

Hint: Think about what each symbol does in a formula and how it helps you perform calculations.

9. Reflection: After completing the exercise, write one thing you found easy and one thing you want more help with:

Hint: Reflect on your learning process. What concepts were clear, and which ones need further clarification?

✅ Answer Key

1. Which formula correctly adds the expenses in cells B2 to B6?

Answer: =SUM(B2:B6)

2. If you type =SUM(B2:B6), which cells will Excel add? (Select all that apply)

Answer: B2, B3, B4, B5, B6

3. Write the exact formula you would type in cell B7 to total the expenses B2 to B6:

Answer: =SUM(B2:B6)

4. Using the numbers given above, calculate the total expenses (show your working):

Answer: $75 + $60 + $45 + $20 + $40 = $240

5. Write the exact subtraction formula you would type in cell B8 to find the remaining balance (Income in B1 minus total expenses in B7):

Answer: =B1-B7

6. Calculate the remaining balance after expenses (show your working):

Answer: $3,500 - $240 = $3,260

7. In one sentence, why is using =SUM(range) in Excel better than adding numbers by hand? Give two short reasons.

Answer: It is more accurate and saves time compared to manual calculations.

8. Explain what the colon ( : ) means inside a SUM formula, for example in =SUM(B2:B6):

Answer: The colon indicates a range of cells from B2 to B6, meaning all cells in between are included in the calculation.

9. Reflection: After completing the exercise, write one thing you found easy and one thing you want more help with:

Answer: (Answers will vary based on student reflection.)

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