MAP4C Assignment 16 Budget Case Studies Case Study #1 - Natalie's situation Natalie has found a new job in Windsor, which pays her $23 051/yr. Natalie gets paid bi-weekly an amount of $702.19 (after all deductions). She rents an apartment with a roommate, Francine. As a result, some items in her budget can be shared . These are some of her thoughts Rent: We share a 2-bedroom apartment, each paying $200 a month for rent Food: Francine and I figure that we should be able to buy groceries for about $70/week (approx. $150/mth each) Car Insurance costs me $780 annually I drive an average of 150 km/week (to and from work and pleasure driving) at 6 L/100 km and $0.659/L Since my car is 8 years old. I'd better allow $80 to $90 each month for maintenance and repairs Utilities: Others in our apartment building say that hydro should be no more than $50/month, and I'll allow $15/month as my share of the telephone bill and $20 as my share of the cable bill, Total: $60/month ($50 - 2 . $15 . $20) Entertainment and recreation Movie and/or eat out once a week, plus "Y" membership at $25/month shouldn't be more than $100/month in total Clothing: Last year I spent nearly $2000 on clothing, but in Windsor I won't need the heavy winter clothing that I did in Timmins, so.. $1800/ yr. Personal, medical and dental, gift and Donations: Many of these items I've had no personal experience with So I'm going with costs suggested by my parents (P $75/mth, M&D $50/mth, and G & Don $60/mth) Car payment: I still have to make payments on the loan I took to buy my car. ($155/mth) Savings: I'd like to save $100 every month. This will give me $1000 for a nice vocation next summer! Miscellaneous : I've budgeted about 5% of my total budget to cover any unexpected expenses 1. What is Natalie's monthly take-home pay? 2. a) Prepare Natalie's monthly budget. Calculate the percent that each item represents of her total budget. Monthly budget Percent Item Income Total Income Rent Food Car (fuel, maintenance, insurance) Car payments Utilities (cable, phone, hydro) Entertainment and recreation Clothing Personal (haircuts and styling, soap. toothpaste....) Medical and dental Gifts and donations Savings Miscellaneous Total Expenses Total Income - Total Expenses c) Does Natalie have enough money for her budget? Explain. d) What should she do with the leftover money? 3. In her first 3 months in Windsor, Natalie records her actual expenses and savings as shown: Complete the table Item Actual amount Budgeted amount Rent 600 Food 482.67 Car (fuel, maintenance, insurance) 593.12 Car payments 465 Utilities (cable, phone, hydro) 234.75 Entertainment and recreation 308 Clothing 40191 Personal (haircuts and styling, soap. 254.67 toothpaste. Medical and dental 77 89 Gifts and donations 153.17 Savings 285 Miscellaneous 95 23