Question
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The Student Budget (1/ 3)
Part 1
Directions: Use the attached budget form or the budgeting tool located on foundationsU.com to cre- ate three zero-based budgets: one for each student described below and a personal one based on your income (this may include a regular allowance from your parents) and expenses. Fill in all income and expenses on the form with the information provided. Remember to compute net pay by taking 20% out for taxes.
1 Marcus, a high school student, works at a lumber yard ma king $10.50 an hour. With his academic and
sports schedule, he is able to work 25 hours a week. He can pick up extra hours, but not consistently.
Marcus lives at home, so he has very few bills. He is responsible for his cell phone bill, which is $65 a
month. He pays for his auto insurance, which is $1,200 a year, and he pays for gas, maintenance and
repairs on his car. Lastly, Marcus is responsible for his spending money. He has a fully funded emergency
fund of $500 but has a goal of saving additional money for new tires. (As a high school student, assume that
groceries, health insurance and utilities are expenses covered by his parents.)
2
Jenna works at the grocer y store and earns $9 an hour. She is busy with extracurricular activities and only works 20 hours during the week. However, she picks up an eight-hour Sunday shift once a month, for which she earns time and a half. Jenna also lives at home and has health insurance under her mom’s plan. She is expected to pay for her own car repairs, maintenance and gas, as well as her auto insurance, which costs $1,000 a year. Jenna wants to take a trip to Mexico with her friends next year, which will cost $1,500.
3
Create a zero-based budget based on your own income (may include allowance or part-time job).
MAKE 3 COPIES OF THE STUDENT BUDGET ON PAGE 2.!!!!!
Start Here to begin your journey toward financial success
Giving
Charity:
Other:
Giving total:
Transportation
Gas:
Car Insurance:
Oil Changes:
License & Taxes:
Transportation total:
Saving
Emergency Fund:
College:
Car & Repairs:
Computer:
Other:
Saving total:
Personal
Cosmetics/Hair Care:
Music/Technology:
Gifts:
Pocket Money:
Cell Phone:
Other:
Personal total:
Food
Restaurants/Eating Out:
School Lunch/Snacks:
Food total:
Clothing
Clothes:
Sports Jerseys / Apparel
Clothing total:
Recreation
Movies:
Concerts:
Sporting Events:
Other:
Recreation Total:
$Monthly Income - $Monthly Outgo = $Zero!
The Student Budget (1/ 3)
Part 1
Directions: Use the attached budget form or the budgeting tool located on foundationsU.com to cre- ate three zero-based budgets: one for each student described below and a personal one based on your income (this may include a regular allowance from your parents) and expenses. Fill in all income and expenses on the form with the information provided. Remember to compute net pay by taking 20% out for taxes.
1 Marcus, a high school student, works at a lumber yard ma king $10.50 an hour. With his academic and
sports schedule, he is able to work 25 hours a week. He can pick up extra hours, but not consistently.
Marcus lives at home, so he has very few bills. He is responsible for his cell phone bill, which is $65 a
month. He pays for his auto insurance, which is $1,200 a year, and he pays for gas, maintenance and
repairs on his car. Lastly, Marcus is responsible for his spending money. He has a fully funded emergency
fund of $500 but has a goal of saving additional money for new tires. (As a high school student, assume that
groceries, health insurance and utilities are expenses covered by his parents.)
2
Jenna works at the grocer y store and earns $9 an hour. She is busy with extracurricular activities and only works 20 hours during the week. However, she picks up an eight-hour Sunday shift once a month, for which she earns time and a half. Jenna also lives at home and has health insurance under her mom’s plan. She is expected to pay for her own car repairs, maintenance and gas, as well as her auto insurance, which costs $1,000 a year. Jenna wants to take a trip to Mexico with her friends next year, which will cost $1,500.
3
Create a zero-based budget based on your own income (may include allowance or part-time job).
MAKE 3 COPIES OF THE STUDENT BUDGET ON PAGE 2.!!!!!
Start Here to begin your journey toward financial success
Giving
Charity:
Other:
Giving total:
Transportation
Gas:
Car Insurance:
Oil Changes:
License & Taxes:
Transportation total:
Saving
Emergency Fund:
College:
Car & Repairs:
Computer:
Other:
Saving total:
Personal
Cosmetics/Hair Care:
Music/Technology:
Gifts:
Pocket Money:
Cell Phone:
Other:
Personal total:
Food
Restaurants/Eating Out:
School Lunch/Snacks:
Food total:
Clothing
Clothes:
Sports Jerseys / Apparel
Clothing total:
Recreation
Movies:
Concerts:
Sporting Events:
Other:
Recreation Total:
$Monthly Income - $Monthly Outgo = $Zero!
Answers
GPT-4o mini
To create a zero-based budget for each of the students described, we need to calculate their monthly income, expenses, and then allocate funds to ensure all their income is assigned a specific purpose (zero-based budgeting).
### Student 1: Marcus
**Income:**
- Hourly Wage: $10.50
- Hours Worked Per Week: 25
- Weekly Income Before Taxes: $10.50 * 25 = $262.50
- Monthly Income (4 weeks): $262.50 * 4 = $1,050
- Taxes (20%): $1,050 * 0.20 = $210
- **Net Monthly Income:** $1,050 - $210 = $840
**Expenses:**
- Cell Phone Bill: $65
- Auto Insurance: $1,200 / 12 = $100
- Gas/Maintenance/Repairs: (assumed for budget) $100
- Spending Money: (assumed for budget) $175
- Savings for New Tires: (assumed for budget) $400
**Budget Summary:**
- **Giving Total:** $0
- **Transportation Total:** $100 (Gas and auto insurance)
- **Saving Total:** $400 (Towards new tires)
- **Personal Total:** $65 (Cell phone)
- **Food Total:** $0 (Covered by parents)
- **Clothing Total:** $0
- **Recreation Total:** $175 (Spending money)
**Total Monthly Expenses:** $65 (Cell Phone) + $100 (Transportation) + $400 (Savings) + $175 (Recreation) = **$740**
**Final Calculation:** $840 (Net Income) - $740 (Total Expenses) = **$100** surplus. (This amount can be allocated elsewhere or saved for future expenses.)
### Student 2: Jenna
**Income:**
- Hourly Wage: $9
- Weekly Hours: 20
- Monthly Income from Regular Hours: $9 * 20 * 4 = $720
- Additional Sunday Shift (8 hours at time and a half):
- $9 * 1.5 = $13.50 (overtime rate)
- Monthly Additional Income: $13.50 * 8 = $108
- **Total Monthly Income Before Taxes:** $720 + $108 = $828
- Taxes (20%): $828 * 0.20 = $165.60
- **Net Monthly Income:** $828 - $165.60 = $662.40
**Expenses:**
- Car Insurance: $1,000 / 12 = $83.33
- Gas/Maintenance/Repairs: (assumed for budget) $100
- Spending Money: (assumed for budget) $200
- Trip to Mexico Savings: (planned) $225
**Budget Summary:**
- **Giving Total:** $0
- **Transportation Total:** $183.33 (Auto insurance + gas/maintenance)
- **Saving Total:** $225 (Savings for trip)
- **Personal Total:** $0
- **Food Total:** $0 (Covered by parents)
- **Clothing Total:** $0
- **Recreation Total:** $200 (Spending money)
**Total Monthly Expenses:** $83.33 (Transportation) + $100 (Gas) + $200 (Recreation) + $225 (Savings) = **$608.33**
**Final Calculation:** $662.40 (Net Income) - $608.33 (Total Expenses) = **$54.07** surplus (can be allocated or saved).
### Student 3: Your Personal Zero-Based Budget
For your budget, fill in the numbers according to your income and expenses. Here is a template:
**Income:**
- Allowance/Job Income: (e.g., $300/month)
- Taxes (if applicable): $60 (20%)
- **Net Income:** $240
**Expenses:**
- Cell Phone Bill: $60
- Transportation: $50
- Savings: $80 (Emergency fund, college, etc.)
- Entertainment/Food: $40
- Clothing: $30
- Other: $30
**Budget Summary:**
- **Giving Total:** $0
- **Transportation Total:** $50
- **Saving Total:** $80
- **Personal Total:** $60
- **Food Total:** $40
- **Clothing Total:** $30
- **Recreation Total:** $30
**Total Expenses:** $50 + $60 + $80 + $40 + $30 + $30 = **$290**
**Final Calculation:** $240 (Net Income) - $290 (Total Expenses) = **$50 deficit**. Adjust the savings and/or personal spending to create a balanced budget.
**Important Note**: These budgets can be tailored to reflect actual income and expenses. Be sure to revise numbers based on real situations. Always allocate any surplus to savings or future expenses to ensure a complete zero-based budget.
### Student 1: Marcus
**Income:**
- Hourly Wage: $10.50
- Hours Worked Per Week: 25
- Weekly Income Before Taxes: $10.50 * 25 = $262.50
- Monthly Income (4 weeks): $262.50 * 4 = $1,050
- Taxes (20%): $1,050 * 0.20 = $210
- **Net Monthly Income:** $1,050 - $210 = $840
**Expenses:**
- Cell Phone Bill: $65
- Auto Insurance: $1,200 / 12 = $100
- Gas/Maintenance/Repairs: (assumed for budget) $100
- Spending Money: (assumed for budget) $175
- Savings for New Tires: (assumed for budget) $400
**Budget Summary:**
- **Giving Total:** $0
- **Transportation Total:** $100 (Gas and auto insurance)
- **Saving Total:** $400 (Towards new tires)
- **Personal Total:** $65 (Cell phone)
- **Food Total:** $0 (Covered by parents)
- **Clothing Total:** $0
- **Recreation Total:** $175 (Spending money)
**Total Monthly Expenses:** $65 (Cell Phone) + $100 (Transportation) + $400 (Savings) + $175 (Recreation) = **$740**
**Final Calculation:** $840 (Net Income) - $740 (Total Expenses) = **$100** surplus. (This amount can be allocated elsewhere or saved for future expenses.)
### Student 2: Jenna
**Income:**
- Hourly Wage: $9
- Weekly Hours: 20
- Monthly Income from Regular Hours: $9 * 20 * 4 = $720
- Additional Sunday Shift (8 hours at time and a half):
- $9 * 1.5 = $13.50 (overtime rate)
- Monthly Additional Income: $13.50 * 8 = $108
- **Total Monthly Income Before Taxes:** $720 + $108 = $828
- Taxes (20%): $828 * 0.20 = $165.60
- **Net Monthly Income:** $828 - $165.60 = $662.40
**Expenses:**
- Car Insurance: $1,000 / 12 = $83.33
- Gas/Maintenance/Repairs: (assumed for budget) $100
- Spending Money: (assumed for budget) $200
- Trip to Mexico Savings: (planned) $225
**Budget Summary:**
- **Giving Total:** $0
- **Transportation Total:** $183.33 (Auto insurance + gas/maintenance)
- **Saving Total:** $225 (Savings for trip)
- **Personal Total:** $0
- **Food Total:** $0 (Covered by parents)
- **Clothing Total:** $0
- **Recreation Total:** $200 (Spending money)
**Total Monthly Expenses:** $83.33 (Transportation) + $100 (Gas) + $200 (Recreation) + $225 (Savings) = **$608.33**
**Final Calculation:** $662.40 (Net Income) - $608.33 (Total Expenses) = **$54.07** surplus (can be allocated or saved).
### Student 3: Your Personal Zero-Based Budget
For your budget, fill in the numbers according to your income and expenses. Here is a template:
**Income:**
- Allowance/Job Income: (e.g., $300/month)
- Taxes (if applicable): $60 (20%)
- **Net Income:** $240
**Expenses:**
- Cell Phone Bill: $60
- Transportation: $50
- Savings: $80 (Emergency fund, college, etc.)
- Entertainment/Food: $40
- Clothing: $30
- Other: $30
**Budget Summary:**
- **Giving Total:** $0
- **Transportation Total:** $50
- **Saving Total:** $80
- **Personal Total:** $60
- **Food Total:** $40
- **Clothing Total:** $30
- **Recreation Total:** $30
**Total Expenses:** $50 + $60 + $80 + $40 + $30 + $30 = **$290**
**Final Calculation:** $240 (Net Income) - $290 (Total Expenses) = **$50 deficit**. Adjust the savings and/or personal spending to create a balanced budget.
**Important Note**: These budgets can be tailored to reflect actual income and expenses. Be sure to revise numbers based on real situations. Always allocate any surplus to savings or future expenses to ensure a complete zero-based budget.