Question
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 Marcus and Jenna, we need to calculate their monthly income, their expenses, and work through their goal of saving for specific items. Here’s how we can outline the budgets using the details provided for each student.
### 1. **Marcus's Zero-Based Budget**
**Income:**
- Hourly Wage: $10.50
- Hours Worked Per Week: 25
- Weekly Income: \( 10.50 \times 25 = 262.50 \)
- Monthly Income: \( 262.50 \times 4 = 1,050 \)
- Tax Deduction (20%): \( 1,050 \times 0.20 = 210 \)
- Net Monthly Income: \( 1,050 - 210 = 840 \)
**Expenses:**
- Cell Phone Bill: $65
- Auto Insurance (monthly): \( \frac{1,200}{12} = 100 \)
- Gas, Maintenance, and Repairs (estimate): $150
- Spending Money (leftover amount for other expenses and savings):
- Total Expenses: \( 65 + 100 + 150 = 315 \)
- Spending Money: \( 840 - 315 = 525 \)
**Savings:**
- Emergency Fund: $0 (already funded)
- Tire Savings: $525 (going towards tires)
**Marcus's Zero-Based Budget Summary:**
| **Category** | **Amount ($)** |
|-------------------------|-----------------|
| **Income:** | |
| Monthly Income | 1,050 |
| Less: Taxes (20%) | -210 |
| **Net Income** | 840 |
| | |
| **Expenses:** | |
| Cell Phone | 65 |
| Auto Insurance | 100 |
| Gas, Maintenance, Repairs| 150 |
| **Total Expenses** | 315 |
| | |
| **Savings:** | |
| Tire Savings | 525 |
| | |
| **Total Outflow** | 840 |
---
### 2. **Jenna's Zero-Based Budget**
**Income:**
- Hourly Wage: $9.00
- Hours Worked Per Week: 20
- Weekly Income: \( 9 \times 20 = 180 \)
- Monthly Income: \( 180 \times 4 = 720 \)
- Sunday Shift (8 hours, time-and-a-half):
- Sunday Shift Pay: \( 8 \times \frac{9 \times 1.5}{1} = 108 \)
- Total Monthly Income: \( 720 + 108 = 828 \)
- Tax Deduction (20%): \( 828 \times 0.20 = 165.60 \)
- Net Monthly Income: \( 828 - 165.60 \approx 662.40 \)
**Expenses:**
- Car Insurance (monthly): \( \frac{1,000}{12} = 83.33 \)
- Gas, Maintenance, and Repairs (estimate): $150
- Spending Money (for savings toward trip):
- Total Expenses: \( 83.33 + 150 = 233.33 \)
- Spending Money (to save for Mexico): \( 662.40 - 233.33 \approx 429.07 \)
**Jenna's Zero-Based Budget Summary:**
| **Category** | **Amount ($)** |
|-------------------------|-----------------|
| **Income:** | |
| Monthly Income | 828 |
| Less: Taxes (20%) | -165.60 |
| **Net Income** | 662.40 |
| | |
| **Expenses:** | |
| Car Insurance | 83.33 |
| Gas, Maintenance, Repairs| 150 |
| **Total Expenses** | 233.33 |
| | |
| **Savings:** | |
| Trip to Mexico | 429.07 |
| | |
| **Total Outflow** | 662.40 |
---
### 3. **Your Personal Zero-Based Budget**
For your personal budget, input your own income (allowance/job) and expenses in a similar format as above. Follow the same calculations for taxes, net income, and ensure that your total income minus total expenses equals zero.
### Final Notes
Make sure to adjust any numbers based on your actual income and expected monthly expenses. All budgets should balance out to $0, ensuring that every dollar is accounted for either in spending or saving.
### 1. **Marcus's Zero-Based Budget**
**Income:**
- Hourly Wage: $10.50
- Hours Worked Per Week: 25
- Weekly Income: \( 10.50 \times 25 = 262.50 \)
- Monthly Income: \( 262.50 \times 4 = 1,050 \)
- Tax Deduction (20%): \( 1,050 \times 0.20 = 210 \)
- Net Monthly Income: \( 1,050 - 210 = 840 \)
**Expenses:**
- Cell Phone Bill: $65
- Auto Insurance (monthly): \( \frac{1,200}{12} = 100 \)
- Gas, Maintenance, and Repairs (estimate): $150
- Spending Money (leftover amount for other expenses and savings):
- Total Expenses: \( 65 + 100 + 150 = 315 \)
- Spending Money: \( 840 - 315 = 525 \)
**Savings:**
- Emergency Fund: $0 (already funded)
- Tire Savings: $525 (going towards tires)
**Marcus's Zero-Based Budget Summary:**
| **Category** | **Amount ($)** |
|-------------------------|-----------------|
| **Income:** | |
| Monthly Income | 1,050 |
| Less: Taxes (20%) | -210 |
| **Net Income** | 840 |
| | |
| **Expenses:** | |
| Cell Phone | 65 |
| Auto Insurance | 100 |
| Gas, Maintenance, Repairs| 150 |
| **Total Expenses** | 315 |
| | |
| **Savings:** | |
| Tire Savings | 525 |
| | |
| **Total Outflow** | 840 |
---
### 2. **Jenna's Zero-Based Budget**
**Income:**
- Hourly Wage: $9.00
- Hours Worked Per Week: 20
- Weekly Income: \( 9 \times 20 = 180 \)
- Monthly Income: \( 180 \times 4 = 720 \)
- Sunday Shift (8 hours, time-and-a-half):
- Sunday Shift Pay: \( 8 \times \frac{9 \times 1.5}{1} = 108 \)
- Total Monthly Income: \( 720 + 108 = 828 \)
- Tax Deduction (20%): \( 828 \times 0.20 = 165.60 \)
- Net Monthly Income: \( 828 - 165.60 \approx 662.40 \)
**Expenses:**
- Car Insurance (monthly): \( \frac{1,000}{12} = 83.33 \)
- Gas, Maintenance, and Repairs (estimate): $150
- Spending Money (for savings toward trip):
- Total Expenses: \( 83.33 + 150 = 233.33 \)
- Spending Money (to save for Mexico): \( 662.40 - 233.33 \approx 429.07 \)
**Jenna's Zero-Based Budget Summary:**
| **Category** | **Amount ($)** |
|-------------------------|-----------------|
| **Income:** | |
| Monthly Income | 828 |
| Less: Taxes (20%) | -165.60 |
| **Net Income** | 662.40 |
| | |
| **Expenses:** | |
| Car Insurance | 83.33 |
| Gas, Maintenance, Repairs| 150 |
| **Total Expenses** | 233.33 |
| | |
| **Savings:** | |
| Trip to Mexico | 429.07 |
| | |
| **Total Outflow** | 662.40 |
---
### 3. **Your Personal Zero-Based Budget**
For your personal budget, input your own income (allowance/job) and expenses in a similar format as above. Follow the same calculations for taxes, net income, and ensure that your total income minus total expenses equals zero.
### Final Notes
Make sure to adjust any numbers based on your actual income and expected monthly expenses. All budgets should balance out to $0, ensuring that every dollar is accounted for either in spending or saving.