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Financial Future: Learning Assessment Two

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

Income:

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                                                                                         _________

Car payment: \$250/month                                                                           _________

Internet service: \$30/month                                                                       _________

Cell phone: \$130/month                                                                               _________

Credit card 1: \$150/month                                                                           _________

Credit card 2: \$75/month                                                                              _________

Total Monthly Fixed Expenses:                                                                                  _________

Monthly Variable Expenses (Usual Spending)

Gas bill: \$110/month                                                                                      _________

Electric bill: \$120/month                                                                               _________

Gasoline: \$250/month                                                                                   _________

Groceries: \$200/WEEK                                                                                   _________

Savings: \$100/month                                                                                      _________

Total Monthly Variable Expenses                                                                                            _________

Non-monthly Expenses

Car insurance: \$600/six months of coverage                        _________

Water bill: \$90/quarter                                                               _________

Auto maintenance: \$420/year                                                   _________

Medical out of pocket: \$480/year                                             _________

Total Non-monthly Expenses                                                     _________

Total Monthly Expenses:                                                                                                             _________

Monthly Income:                                                             \$3,483

Less Total Monthly Expenses:                                     ________

Available Monthly Spending Money        :               ________

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

• Do you believe this budget is sufficient?

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