personal budget

Calculate the income needed based on the following budgeted expenses. Month _______ Budgeted Amount Rent $350 Utilities $100 Food $150 Entertainment $75 Bus Pass $25 College Savings $300 a. The income would need to be at least $1000. b. The income would need to be at least $950. c. The income would need to be at least $1125. d. The income would need to be at least $850.

A

Maddox wants to go back to college full-time. His current employer has agreed to reduce his hours from 40 hours to 25 hours while retaining his current rate of pay. Maddox has lived in his own apartment for 1 year and really likes his independence. Which of the following budgets below would fit his new situation? Monthly Budget Current Amount Income Wages $1760 Expenses - Rent Utilities Food Gym Membership Entertainment Savings Clothes Cell Phone Car Expenses $350 $100 $220 $45 $225 $200 $175 $100 $300 Net Income $45 Monthly Budget Modified Budget A Modified Budget B Modified Budget C Modified Budget D Income Wages $1100 $1600 $1600 $1100 Expenses - Rent Utilities Food Gym Membership Entertainment Savings Clothes Cell Phone Car Expenses $350 $100 $120 $0 $20 $50 $30 $100 $300 $350 $100 $120 $0 $20 $50 $30 $100 $300 $350 $100 $220 $45 $225 $200 $175 $100 $300 $350 $100 $220 $45 $220 $150 $130 $100 $300 Net Income $30 $530 -$115 -$515 a. Modified Budget A b. Modified Budget B c. Modified Budget C d. Modified Budget D

A

Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition. Monthly Budget Budget A Budget B Budget C Budget D Income $1250 $1000 $1125 $1500 Expenses Rent Utilities Food Cell Phone Savings Personal Items Entertainment Car Expenses Clothing $200 $70 $150 $0 $600 $120 $30 $0 $20 $200 $80 $250 $75 $50 $10 $100 $200 $0 $300 $75 $160 $40 $200 $25 $20 $0 $300 $0 $0 $400 $110 $450 $50 $150 $250 $50 Net Income $60 $35 $5 $40 a. Budget A b. Budget B c. Budget C d. Budget D

A

Sofia still lives at home, but helps with the rent paying $200 per month. She has a job that pays about $700 per month after taxes. She has to pay for her own personal items such as clothing and toiletries spending about $120 per month. Going out with friends is important to her, but she also wants to save money to buy her own car. Select the budget that would best help meet her goals. Monthly Budget Budget A Budget B Budget C Budget D Income $700 $700 $700 $700 Expenses - Rent $200 $200 $200 $200 Personal Items $120 $120 $120 $120 Entertainment $100 $300 $200 $325 Savings $250 $50 $150 $25 a. Budget A b. Budget B c. Budget C d. Budget D

A

expences

Anything on which money is spent

Predict how much money can be saved without having a negative actual net income. Monthly Budget Budgeted Amount Actual Amount Income Wages Savings Interest $1150 $25 $900 $25 Expenses Rent Utilities Food Cell Phone Savings $400 $100 $250 $75 $200 $400 $80 $200 $75 $____ Net Income $150 $____ a. It is not possible to save any money this month without having a negative actual net income. b. $170 can be saved resulting in an actual net income of $0. c. $200 can be saved resulting in an actual net income of $150. d. As long as you are saving money, you will not have a negative actual net income.

B

Alexa has finished her culinary training program and is now working full-time as a chef in a hotel resort restaurant. She has tripled her salary from when she was working part-time to pay her expenses through school. How should this increased income affect her budget? Make comparisons with her previous budget and her current budget. Monthly Budget Previous Budget Current Budget Income Wages $800 $2400 Expenses Rent Utilities Groceries Savings Bus Pass $300 $60 $200 $100 $30 $300 $60 $250 $150 $30 Net Income $110 $1610 a. Alexa is earning quite a bit more money and her expenses reflect the change in income. b. Alexa is earning quite a bit more money than she was previously. She has worked hard and deserves to spend a lot of money on herself. c. Alexa is earning quite a bit more money than she was previously. This would be a good time for her to re-evaluate her budget. Part of the extra money she is making could be put in her savings account. d. Her increased income should have no effect on her financial decisions.

C

Alejandro lives in a small apartment, within walking distance to school. He takes the bus to work where he makes $10 per hour after taxes and works 30 hours per week. He wants to save money to buy a $6000 car within the next 2 years. How could a monthly budget be created to help Alejandro meet his financial goals? Select the best option. Monthly Budget Budget A Budget B Budget C Budget D Income $1,500 $1,500 $1,200 $1,200 Expenses- Rent $600 $600 $600 $600 Utilities $100 $100 $100 $100 Food $150 $550 $250 $150 Bus Pass $ 25 $ 25 $ 25 $ 25 Savings $250 $250 $250 $250 a. Budget A b. Budget B c. Budget C d. Budget D

D

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. Month________ Budgeted Amount Food $___ Personal Items $20 Cell Phone $75 Entertainment $85 Car Expenses - Gas, Insurance $260 College Savings $250 a. No more than $70 can be spent on food. b. No more than $75 can be spent on food. c. No more than $80 can be spent on food. d. No more than $60 can be spent on food.

D

Antonio is ready to move out of his parent's house and live on his own. He found a great apartment that has all utilities included. His job as an assistant plumber requires him to have a car, but his hours are flexible enough to give him time on the weekends to have fun with his friends. What is the best way Antonio's budget can be modified to help him save enough for the $200 down payment and make the $500 monthly rental payment? Monthly Budget Old Budget New Budget Income Wages $1500 $1500 Expenses Food Cell Phone Savings Entertainment Car Expenses . $250 $175 $200 $200 $300 . $____ $____ $____ $____ $____ Net Income $375 $____ a. Antonio could keep his budget the same and hope he gets a raise at work. b. Antonio could reduce his monthly entertainment expenses by $100 to help pay the monthly rent. He could take $200 out of savings once for the deposit. c. Antonio could live at his parent's house for one more month and save his net income. After one month of living at home, he would have enough additional money for the deposit and one year's rent at the apartment. d. Antonio could reduce his monthly entertainment expenses by $75 and his food expenses by $50 to pay the monthly rent. He could take $200 out of savings once for the deposit.

D

Examine the following budget: Monthly Budget Budgeted Amount Actual Amount Income Wages Savings Interest $1150 $25 $900 $25 Expenses Rent $400 $400 Utilities $100 $80 Food $250 $200 Cell Phone $75 $75 Savings for Car $200 $200 Net Income $30 What is the actual net income for the month? What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value? a. The actual net income for the month is -$30. Less money could have been put into savings. b.The actual net income for the month is $30. No changes. c. The actual net income for the month is -$30. Less money could have been spent on food. d. Both a and c

D

budget

a list of all income and planned expenses.

income

money coming in through wages, allowance or other sources.