100% HIP 401: Unit 3 Budgeting Assignment Unit 3 Budgeting Assignment Part A: Read through the following case study. Using the Budget Planning sheet. create a monthly budget for Heather. Heather has recently graduated from college and has landed her first job that grosses approximately $35 000 a year. She is extremely excited because the salary sounds like a huge amount of money. She knows that in order to manage her money well, she needs to create a plan for how to spend it- she needs to create a budget. Her monthly income after deductions is $2040. She has budgeting the following expenses to pay each month: Rent $650 (utilities included) . Car payment $310 Insurance $105 . Gas/oil $100 OSAP loan repayment $200 Cable/Internet $80 Cellphone $30 Food $200 . Entertainment $80 Clothing/Shoes $75 gomario ch Personal items $30 . Savings $100 . Other Misc. Items $80 ** Please add these items to the first column on the budget planning sheet" Part B: Using the Budget Planning spreadsheet, make entries into the ACTUAL column to see how Heather has fared this month. (Application 10 marks) When Heather tracked her spending for the month, in order to check to see if her budget was accurate, she had the following actual income and expenses: Overtime pay this month $202.50 . Birthday gift from parents $100 . Rent $650 . Car payment $310 . Insurance $105 . Gas/Oil $175 (gas prices went up, and she needed an oil change and tire rotation) . OSAP loan repayment $200 Cable/internet $80 . Cellphone $45 (she went over on her data and talk time minutes) Food $250 (she went out for lunch several times this month) . . Entertainment $100 M LILE 6230 (hought now running shoes at Foot Locker and an outfit from expenses? Use this information to create your own budget (you can use the included one or make up your own.) Are you in control of your money? Explain HIP401: Unit 3 INCOME Money coming in Monthly Job Income Other Money TOTAL INCOME EXPENSES A list of "bills" needed to pay each month Fixed Expenses costs that are paid each month Housing (Rent) Savings Cable/Internet Budgeting Assignment Planning Sheet - Application 10 marks BUDGET (Part A) ACTUAL (Part B) What Heather actually spent an estimate of Heather is planning to spend this month that month BUDGET ACTUAL (HINT-All left-over money goes here) Monthly Budget Cell Phone Car Payment Insurance Debt/ Loan Repayment Flexible Expenses costs that fluctuate (vary each month) Food/meals Gasoline Clothing/Shoes Entertainment Personal Items Household Items Other Items TOTAL EXPENSES Part C: Answer the following questions if full sentences (Thinking 5 marks) 1. Does Heather have enough income (money) to cover all her expenses this month? 2. If Heather wishes to save $100.00 a month - Are her savings goals realistic based on the above case study? 3. What expenses are discretionary expenses in Heather's budget? (Discretionary Expenses are defined as things that are "wants" rather than "needs) 4. How could Heather alter her budget in order to avoid shortfalls in covering her expenses and meet her savings goals? Part D: Reflection (Communication 5 marks) Now that you have worked through the sample budget, it is time to think about your own financial situation. List all the sources of income that you currently have. List all the fixed expenses you currently have. List all the flexible expenses you currently have. Which ones are discretionary expenses? Are you in control of your money? Explain