Parr Budget Worksheet Recommended changes: PART 1: MONTHLY INCOME Old Budget Current Budget New Budget Person #1: Monthly income from full time job $5,645.67 $5,645.67 $5,645.67 Person #2: Monthly income from unemployment insurance $1,400.00 $ $ TOTALS (Automatically Calculated) $7,045.67 $5,645.67 $5,645.67 PART 2: MONTHLY EXPENSE Old Budget Current Budget New Budget Mortgage / Taxes / Home Insurance $1,843.00 $1,843.00 Credit Card #1 (Balance $3,279.00, Interest rate 18.9%, minimum payment) $126. 16 $126.16 Credit Card #2 (Balance $2,252.00, Interest rate 15.9%, minimum payment) $92.48 $92.48 Credit Card #3 (Balance $4,375.00, Interest rate 8.75%, minimum payment) $169.40 $169.40 Comments (remember to show research): Car 1 (Payment, 5 year loan) - Honda Accord $247.00 $247.00 Car 2 (Lease, 36 months) - Honda CR-V $219.00 $219.00 Car Insurance $155.00 $155.00 Gasoline $150.00 $150.00 Health Insurance $1, 186.00 $1, 186.00 Cable TV / Internet Access / Phone $219.00 $219.00 Clothes $150.00 $150.00 Mobile Phones $180.00 $180.00 Groceries $650.00 $650.00 Pet care $50.00 $50.00 Gym Membership $140.00 $140.00 Electric Bill $195.00 $195.00 Entertainment $400.00 $400.00 TOTALS (Automatically Calculated) $6, 172.04 $6, 172.04 $0.00 PART 3: RESULTS (Automatically Generated from Parts 1 & 2 Above) Old Budget Current Budget New Budget TOTAL MONTHLY INCOME $7,045.67 $5,645.67 $5,645.67 TOTAL MONTHLY EXPENSE $6, 172.04 $6, 172.04 50.00 VARIANCE (This is how much over, or under, your budget you are. $873.63 ($526.37) $5,645.67 If this number is positive (blue), good work! The Parr family is spending less than they're earning. If it's a negative number (red), you need to consider more ways to save or reprioritize expenditures.Introduction: Bob and Helen Parr and their 12 year old son, Jack-Jack, live in a beautiful house in Cary, North Carolina. Their house has 4 bedrooms, 4 baths and is 3,285 ftz. In 2019, shortly after the family purchased their home and a new Honda Accord, Bob lost hisjob. Since then he has been unable to find employment. Living on Bob's unemployment insurance rather than his salary left the family with less money than they were used to spending, so they used credit cards to pay for some of their expenditures. In December of 2020, believing that he was about to be offered a prestigious new job, Bob leased a 2020 Honda CR-V (36 month lease). Thatjob fell through and his unemployment benefits have recently run out. The family can no longer meet their monthly expenses and have come to your group for help. Directions: Read the information found at: https://www.bankofamerica.com/deposits/manage/creating-a-budget.go and watch the videos found at http://www.bettermoneyhabits.com (hint: if you have trouble watching some of the videos, read the transcript). Look at the Parr family expenses found on the attached Excel sheet. Research ways in which the family can cut its monthly expenses and balance its budget. Your recommendations must be realistic (for example the Parr family can't stop eating or wearing clothes) and well researched. M cannot totally eliminate any expense only find ways to reduce it. If you recommend saving money on housing, insurance, car payments, utilities, etc. you must research that budget item and find a less expensive alternative for them. If you recommend debt consolidation, you must find them a lower cost loan. Divide the research up among your group then consolidate your recommendations on your Final Worksheet. Fill out the New Budget column on the Parr Budget Worksheet with your recommended changes. Be sure that their new budget covers all of their monthly expenses. Document your recommendations and cite your research in the text box on the worksheet. Rename the Excel file as Your Group Name Final and have one group member upload the file via the assignment link on Blackboard. Some websites to try: http://www. bankrate.com/calculators.aspx http://www.epi.org/resou rces/budget/