Question
Question
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.)
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!
How are we supposed to know which one is which
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.)
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!
How are we supposed to know which one is which
Answers
GPT-4o mini
To create Marcus's zero-based budget, we'll start with his income, calculate his net pay after taxes, and then list his expenses based on the information provided. Here’s how to develop it:
### Step 1: Calculate Monthly Income
**Hourly Wage:** $10.50
**Hours Worked per Week:** 25
**Weekly Income (before taxes):** $10.50 * 25 = $262.50
**Monthly Income (before taxes):** $262.50 * 4 = $1,050
**Taxes (20%):**
$1,050 * 0.20 = $210
**Monthly Income (after taxes):**
$1,050 - $210 = $840
### Step 2: List Monthly Expenses
Based on the information, we will allocate Marcus's income to each category.
#### Giving
Assuming Marcus chooses not to allocate any money for charity or other giving purposes.
- **Giving Total:** $0
#### Transportation
- **Gas:** (Assume $100 for gas)
- **Car Insurance:** $1,200 per year ÷ 12 months = $100
- **Oil Changes:** (Assume $30 monthly)
- **License & Taxes:** (Assume $15 monthly)
- **Transportation Total:** $100 + $100 + $30 + $15 = $345
#### Saving
- **Emergency Fund:** $0 (fulfilling existing goal)
- **College:** (Assume saving $100 monthly)
- **Car & Repairs:** (Assume saving $50 monthly)
- **Computer:** (Assume $20 monthly)
- **Other:** $0
- **Savings Total:** $100 + $50 + $20 = $170
#### Personal
- **Cosmetics/Hair Care:** (Assume $20 monthly)
- **Music/Technology:** (Assume $30 monthly)
- **Gifts:** (Assume $20 monthly)
- **Pocket Money:** (Assume $50 monthly)
- **Cell Phone:** $65
- **Other:** $0
- **Personal Total:** $20 + $30 + $20 + $50 + $65 = $185
#### Food
- **Restaurants/Eating Out:** (Assume $50)
- **School Lunch/Snacks:** (Assume $30)
- **Food Total:** $50 + $30 = $80
#### Clothing
- **Clothes:** (Assume $40)
- **Sports Jerseys / Apparel:** (Assume $30)
- **Clothing Total:** $40 + $30 = $70
#### Recreation
- **Movies:** (Assume $30)
- **Concerts:** (Assume $20)
- **Sporting Events:** (Assume $10)
- **Other:** $0
- **Recreation Total:** $30 + $20 + $10 = $60
### Step 3: Summary of Marcus's Budget
Now we can summarize and ensure the budget works out to zero.
| Category | Amount |
|---------------------|---------|
| **Income** | $840 |
| **Giving Total** | $0 |
| **Transportation** | $345 |
| **Saving Total** | $170 |
| **Personal Total** | $185 |
| **Food Total** | $80 |
| **Clothing Total** | $70 |
| **Recreation Total** | $60 |
| **Total Expenses** | $840 |
### Final Calculation
**Total Income: $840**
**Total Expenses: $840**
**Net Pay: $840 - $840 = $0**
### Conclusion
This zero-based budget allows Marcus to effectively allocate all his income, making sure he has a balanced budget where his expenses equal his income. If you need to create additional budgets for different scenarios or individuals, you can follow a similar structure.
### Step 1: Calculate Monthly Income
**Hourly Wage:** $10.50
**Hours Worked per Week:** 25
**Weekly Income (before taxes):** $10.50 * 25 = $262.50
**Monthly Income (before taxes):** $262.50 * 4 = $1,050
**Taxes (20%):**
$1,050 * 0.20 = $210
**Monthly Income (after taxes):**
$1,050 - $210 = $840
### Step 2: List Monthly Expenses
Based on the information, we will allocate Marcus's income to each category.
#### Giving
Assuming Marcus chooses not to allocate any money for charity or other giving purposes.
- **Giving Total:** $0
#### Transportation
- **Gas:** (Assume $100 for gas)
- **Car Insurance:** $1,200 per year ÷ 12 months = $100
- **Oil Changes:** (Assume $30 monthly)
- **License & Taxes:** (Assume $15 monthly)
- **Transportation Total:** $100 + $100 + $30 + $15 = $345
#### Saving
- **Emergency Fund:** $0 (fulfilling existing goal)
- **College:** (Assume saving $100 monthly)
- **Car & Repairs:** (Assume saving $50 monthly)
- **Computer:** (Assume $20 monthly)
- **Other:** $0
- **Savings Total:** $100 + $50 + $20 = $170
#### Personal
- **Cosmetics/Hair Care:** (Assume $20 monthly)
- **Music/Technology:** (Assume $30 monthly)
- **Gifts:** (Assume $20 monthly)
- **Pocket Money:** (Assume $50 monthly)
- **Cell Phone:** $65
- **Other:** $0
- **Personal Total:** $20 + $30 + $20 + $50 + $65 = $185
#### Food
- **Restaurants/Eating Out:** (Assume $50)
- **School Lunch/Snacks:** (Assume $30)
- **Food Total:** $50 + $30 = $80
#### Clothing
- **Clothes:** (Assume $40)
- **Sports Jerseys / Apparel:** (Assume $30)
- **Clothing Total:** $40 + $30 = $70
#### Recreation
- **Movies:** (Assume $30)
- **Concerts:** (Assume $20)
- **Sporting Events:** (Assume $10)
- **Other:** $0
- **Recreation Total:** $30 + $20 + $10 = $60
### Step 3: Summary of Marcus's Budget
Now we can summarize and ensure the budget works out to zero.
| Category | Amount |
|---------------------|---------|
| **Income** | $840 |
| **Giving Total** | $0 |
| **Transportation** | $345 |
| **Saving Total** | $170 |
| **Personal Total** | $185 |
| **Food Total** | $80 |
| **Clothing Total** | $70 |
| **Recreation Total** | $60 |
| **Total Expenses** | $840 |
### Final Calculation
**Total Income: $840**
**Total Expenses: $840**
**Net Pay: $840 - $840 = $0**
### Conclusion
This zero-based budget allows Marcus to effectively allocate all his income, making sure he has a balanced budget where his expenses equal his income. If you need to create additional budgets for different scenarios or individuals, you can follow a similar structure.