ADMN-1010: GRASP ACTIVITY HOUSEHOLD BUDGET GOAL: To encourage team members to think about the budgeting process and the types of decisions needed when budget cuts are necessary. ROLE: To offer knowledge and assistance in developing a budget and reassessing priorities when funds are reduced. AUDIENCE: All team members and your instructor. Team sizes will be 4-5 members. SITUATION: Many people live beyond their means. Then, when financial catastrophe hits unexpectedly, those people often lose whatever financial security they have. Preparing and maintaining a budget is an important habit and a critical tool for planning ahead. Part 1: Each team represents a household of two roommates, with a monthly take home pay of $3000. Rent costs $1200 per month, car payment is $360 per month, and insurance is $100 per month. Each team should assume that one member works 30 kilometres away and the car goes 30 kilometres for each litre of gas used. Student loan payments equal $300 per month, and utilities average $240. Each team must prepare a budget to include the above expenses as well as additional expenses for groceries, clothing, entertainment, and other items. Part 2: As the result of an economic downturn, monthly take home pay will be reduced by 20 percent. PRODUCT: Completion of a budget, revised budget, and comments table to support the decisions made on the revised budget following the economic downturn. RUBRIC total of 36 Points 1 point for each correct entry in the Part 1: Original Budget 1 point for each correct entry in the Part 2: Revised Budget 1 point for a supportive explanation for each Part 2 entry under Expenses o Citation, calculation, and reasonable o Example: Find someone to sublet current apartment and get a new apartment at $1000 ADMN-1010: HOUSEHOLD BUDGET ADMN-1010 GRASP Activity for Bonus Chapter

NAMES: ______________________________________________________________________________________ PART 1 Original Budget PART 2 Revised Budget Budget Items Amounts Budget Items Amounts Income: Income: Take Home Pay $3000 Take Home Pay $ Expenses: Expenses: Rent 1200 Rent Transportation 360 Transportation Insurance 100 Insurance Gas 50 Gas Student Loan 300 Student Loan Utilities 240 Utilities Groceries Groceries Clothing Clothing Entertainment Entertainment Other? Other? Total Expenses Total Expenses: Net $ Net $ SUMMARY SUPPORT FOR PART 2 REVISED BUDGET : ADMN-1010 GRASP Activity for Bonus Chapter

PART 2 Revised Budget Budget Items Explanation Income: Take Home Pay Expenses: Rent Transportation Insurance Gas Student Loan Utilities Groceries Clothing Entertainment Misc. Total Expenses: Net