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. PART 1 Original Budget Budget Items Amounts Income: Take Home Pay $3000 PART 2 Revised Budget Budget Items Amounts Income: Take Home Pay $ Expenses: 1200 360 100 50 300 Rent Transportation Insurance Gas Student Loan Utilities Groceries Clothing Entertainment Other? Total Expenses Expenses: Rent Transportation Insurance Gas Student Loan Utilities Groceries Clothing Entertainment Other? 240 Total Expenses: Net $ Net $ PART 2 Revised Budget Explanation Budget Items Income: Take Home Pay Expenses: Rent Transportation Insurance Gas Student Loan Utilities Groceries Clothing Entertainment Misc. Total Expenses: Net