Financial Literacy Assessment 4

Names: Yesenia Flores, Shakran Lal, Louie Carrier, Krystalyn Boodram, Jordan Ramos, Jason Dumont, Gbolahan Yusuf, Jason Najera, Mike Encalada

Financial Future

Sample Budget Exercise

Part A:  Use the following financial profile to see how much this person will have for “spending money” when all required expenses are accounted for.  Convert all figures to a monthly amount.  Round up to the closest $5


Average NET weekly income:  $950 (taxes deducted)

$950 x 44 weeks (accounts for 8 weeks out of work) = $41,800

$41,800/12 months = $3,483

(Allows for setting aside $635/month to cover 8 weeks out of work)


Monthly Fixed Expenses

Rent: $800/month                                                                                        $2,683

Car payment: $250/month                                                                          $2,433

Internet service: $30/month                                                                     $  2,403

Cell phone: $130/month                                                                              $2,273

Credit card 1: $150/month                                                                         $  2,123

Credit card 2: $75/month                                                                            $2,048

Total Monthly Fixed Expenses:                                                                                $1,435


Monthly Variable Expenses (Usual Spending)

Gas bill: $110/month                                                                                      $1938

Electric bill: $120/month                                                                               $1818

Gasoline: $250/month                                                                                   $1568

Groceries: $200/WEEK                                                                                   $768

Savings: $100/month                                                                                      $668

Total Monthly Variable Expenses                                                                                           $ 1,380       


Non-monthly Expenses

Car insurance: $600/six months of coverage                       $ 100

Water bill: $90/quarter                                                               $30

Auto maintenance: $420/year                                                   $35

Medical out of pocket: $480/year                                             $40

Total Non-monthly Expenses                                                    $205


Total Monthly Expenses:                                                                                                             $3020


Monthly Income:                                                             $3,483

Available Monthly Spending Money        :              $35


Part B: Answer the following questions in response to doing the budget:


  • Do you believe this budget is sufficient? No, it’s not sufficient because all he has left is $30 and he can’t buy many things with the little amount left over. He’ll have to cut some of his spending to get more money left over.








  • If you feel the need to have more available spending money, where would you make adjustments?

Lower the cost of groceries because no one in their right mind should spend that much money on 1 person