This application exercise is designed to give you experience budgeting resources for families under different circumstances.As an additional criterion, at least one of your families should be a homeowner versus a renter. Complete a financial worksheet for both of the families you have selected using the template that is provided. (You may use a modified version of this template if you wish.) Do your best to figure out what property tax would be for a certain geographic area or what a mortgage payment would be based on a house that is valued relative to the income of the family that you selected. You may use the Internet to find information. As a personal reaction to this assignment, answer the five questions listed below when you have completed the two budgets.

Family 1: Two young career professionals married for about a year, shortly after graduating from college. No children. You have a combined income of $65,000 a year before taxes.

Family 2: Two young career professionals married for about a year with a preschool child. You have a combined income of $75,000 a year before taxes.

• How do these household incomes compare with the annual median household income in the state of Ohio? Provide the source you used to obtain the most recent information on household income in the state of OHIO, e.g., URL/ link).
• Did you have enough money to cover the basics and some of the familys wants? If not, what was the biggest difficulty in making ends meet?
• What could the family do differently to ease this problem?
• What was most difficult about the budgeting process for the families that you selected? Easiest?
• What values were you taught regarding money issues when you were growing up? Did these values come into play when budgeting for the families that you selected?
• (Use same financial worksheet for family #2 as family #1 that is given)
• 

$56,111

Family #1 MONTHLY ANNUAL NET INCOME: COMMITTED EXPENSES: Taxes (28% of income) Residence: Rent or mortgage payment Property Tax House Insurance Automobile: Car loan payment Gas/oil Maintenance/repairs Insurance Household/Personal Expenses: Electric/gas Cable Telephone Groceries/liquor Clothes/dry cleaning Personal Care Medical/dental care Prescription drugs Health Insurance Day care Miscellaneous: Entertainment Savings/investments Education Vacations Student loan payments Total The expenses listed on this worksheet are not exhaustive. If you have a child, add your child's expenses to your own for each category. If you have a child, do you want to state saving for his/her college education? If so, estimate how much you will have to set aside now. For example, assuming you will need $100,000 in 18 years to fund your child's education, you would need to invest a monthly sum of $240 at an annual rate of 6.5% simple interest compounded daily to reach $100,000 in 18 years. Family #1 MONTHLY ANNUAL NET INCOME: COMMITTED EXPENSES: Taxes (28% of income) Residence: Rent or mortgage payment Property Tax House Insurance Automobile: Car loan payment Gas/oil Maintenance/repairs Insurance Household/Personal Expenses: Electric/gas Cable Telephone Groceries/liquor Clothes/dry cleaning Personal Care Medical/dental care Prescription drugs Health Insurance Day care Miscellaneous: Entertainment Savings/investments Education Vacations Student loan payments Total The expenses listed on this worksheet are not exhaustive. If you have a child, add your child's expenses to your own for each category. If you have a child, do you want to state saving for his/her college education? If so, estimate how much you will have to set aside now. For example, assuming you will need $100,000 in 18 years to fund your child's education, you would need to invest a monthly sum of $240 at an annual rate of 6.5% simple interest compounded daily to reach $100,000 in 18 years