tealllama6747608Lv1

16 Mar 2023

Budgeting

Directions:

Using the following budget table (make copies if needed) determine if the financial goals of the characters in each scenario can be met.

 

  Income

Salary #1

Salary #2

 

  Total Income

 

  Expenses

  Rent

  Transportation

  Costs

  Food

  Entertainment

  Miscellaneous

 

  Total Expenses

 

  Total Income -Total Expenses

       (Gross Profit/Loss)

 

Sheila is a stay-at-home mom. She is married to Richard, a pharmacist. He brings home about $ 110,000.00 a year. So, he brings home around $ 8500.00 a month. Their mortgage payment on their detached bungalow is $ 1600.00 per month. Their grocery bills are $ 800.00 per month and utilities plus phone, cable and internet come to $ 800.00. Their daughter Maria is in ballet, which costs $ 450 a month and their son gets private tutoring twice a week for $ 120 dollars a week. They have two cars and the payments are combined at $ 1200.00 plus $ 250 a month in gas. Sheila is often stressed so she goes for weekly massages which cost $ 80.00 each time. They sponsor a child in the developing world at $ 28.00 per month and make monthly donations to the local hospital of $ 150.00. They are members of their town country club, where the family spends much of their free time, and membership runs them $ 1800.00 a month. Are they living above their means?

Joyce and Martin have recently married. They are fresh out of high school. Joyce works at a local diner. With tips and salary she brings home equivalent to $ 525.00 a week. They rent a basement apartment for $ 600.00 per month. They often eat at work so they spend only about $ 150.00 a month on groceries. Their utilities and phone bills are an extra $ 350 and they opt not to have cable or internet to save on costs. They must have a car because Martin is a contract construction worker and needs to be able to get to a variety of sites. Because his work is not steady he averages about $ 400.00 per week. His car costs him $ 375 per month and he spends another $ 350.00 in gas driving to a variety of sites. Martin wants to go to college in September to study to be an electrician, but he needs $ 3500.00 for first term tuition. September is only 6 months away. Can they save enough for Martin's tuition?