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3. What are a few ways that Alana can get a better understanding of her spending patterns? Sharon develops a basic plan for Alana
3. What are a few ways that Alana can get a better understanding of her spending patterns? Sharon develops a basic plan for Alana to track every dollar she spends over the course of a month. Alana collects all her receipts in a shoebox and reviews them with Sharon at the end of the month: Coffee: 10 lattes @ $4 each Movies: 3 movies @ 10 each Food: 4 meals with friends @ $12 each; 20 snacks/energy drinks @$3 each Clothes: 3 trips to the mall with friends @ $30 per trip Car insurance: Parents make her pay $70/month toward policy in exchange for driving family car Gas for car: 2 fill-ups @ $35 each Cell phone: Parents expect her to pay $36/month toward family plan Shoes: 1 pair @ $60 To help make sense of all of this information, Sharon asks Alana to organize the information by using the budget template provided below. In the category column, she will list all of her various expenses. She will then make a judgment call about whether each expense is a Want or a Need. In the Monthly Cost column, she will total up the cost for each of the expenses. In the last column, she will calculate how much that item is as a percentage of her total costs. This should help her determine where she spent most of her money in the past month. 4. Complete this chart with the information provided above: Category Want/Need Monthly Cost Coffee Movies Food Clothes Car Insurance Gas Cell phone bill Shoes TOTAL COSTS %age of Total Costs Alana's reaction after completing this process is the following: "Wait a second, Sharon! I think my boss is ripping me off! I work 15 hours a week, on average, at $11/hour. According to my receipts above, I'm spending much less per month than I'm earning, but, as we've already established, I've only got $56 saved up from 3 years of working. What gives? How do I file a complaint? How do I get my money back? Wait until I report this boss of mine! I'm putting this on social media!"
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