MR. GIANG'S CLASSROOM



INSTRUCTIONSFAMILY BUDGET PROJECTCongratulations, your wedding project was a success and you are married. However, that was six years ago and now you are graduated from college with a three-year old. You have a few belongings to help furnish your house (beds, dressers, pots & pans, and TV). However, it’s time you start making a budget because your parents are kicking you out after they have put you through college (yay, no student loans in this situation)YOUR JOB1.Find a place to live2.Find daycare for your child3.Find health insurance for all three family members (it’s not a job benefit)4. Figure a food budget based on a daily food budget5. Figure out transportation situation6.Develop a budget for your family- frugal yet adequate- be sure and get verification of items marked with “**”7.Make suggestions for balancing the budget (if not balanced)8. Create a powerpoint presentation to report on the entire budget plus the evaluation on the budget and steps to balance the budget for the class9. Answer any questions the audience or I will have from reviewing your budgetNOTE: Be sure to discuss EVERY line item in the budget—funded or notECN.5.2 Apply rational decision making to personal spending and saving choices.PFIN.5 Be able to understand, apply, and evaluate money-management decisions. PFIN.5.1 Design an SDA biblically-based personal finance portfolio. PFIN.5.2 Create a realistic household budget. PFIN.5.4 Analyze personal risk management (home, life, health insurances, etc.).DESCRIBING LINE ITEMSYour group is to describe the dollar amount being spent on each line item, what is being purchased, and thoughtfully discuss the reasoning behind the “comfort” rating given for each line item. One common mistake students make in this area of the project is to confuse comfort with the amount spent—you are to rate their comfort with what they have as the result of their spending EXAMPLE: All clothing purchased at thrift storesCORRECT:Rating:UncomfortableReason for rating:Although I will do her best to purchase only articles of clothing that are in good repair, the cloths from the thrift store will be used and often dated in terms of style. In addition, the selection will be quite limited, making it hard to put together matching outfits.INCORRECT:Rating:ComfortableReason for rating:Although Sue wishes she were able to purchase cloths at a regular store like Target, she is a good shopper and is very comfortable with how little money she will have to spend on clothing from thrift stores.Another common mistake student groups make in this area is to neglect to take the time to let their imaginations take them into the daily reality of your family. As a result, the students neglect all kinds of needs that Sue and her family have (e.g., putting the family in a 1-bedroom apartment and neglecting to explain where the family members will sleep, get away/find quiet, or addressing the willingness of the landlord to rent a 1-bedroom apartment to a family of three). It is in this section that your group has a good opportunity to show evidence of having put thought (not just effort) into the project.PLAN/SUGGESTIONS FOR BALANCING THE BUDGETIt might not be likely that student groups will not be able to develop a budget for your family that is both balanced and adequate. Your first task is to develop an adequate (yet frugal) budget for your family. If your budget is not balanced (expenses are greater than income) you need to thoughtfully discuss how you would balance the budget if you had to.You have two methods of balancing the budget open to you. First, you can choose to cut needed, although not essential for life, items from the budget. For each item cut you should list the dollar amount saved and describe the hardship that will be created for the family as a result of having the item cut from the budget.EXAMPLE:Descriptions of Each Suggested CutAlong with Hardship Created by Each CutAmount SavedDrop renter’s insurance from the budget: Although this will save us $13 each month, it also puts us at risk of losing what few possessions she has—she can’t afford to replace her stuff if stolen.$ 13Your second option is to suggest programs or benefits (sponsored by government or private charity) that you think should be made available to families. For each program/benefit you suggest you should discuss if the benefit/program should be sponsored by government (taxes) or private charity and list the dollar amount that you expect the benefit/program to save in the budget. Be reasonable and explain why this might be a problem to society too.EXAMPLE:Descriptions of Each Suggested/Proposed Program/BenefitAlong with Suggested Sponsorship (government or private)Amount SavedWe think that childcare and after-school care should be part of the public school system and funded along with elementary and high school programs.$ 1,220ISSUES RAISED BY THE BUDGETING PROCESSAs your group prepares a budget for your family, I hope that you will be stimulated to reflect on the economic challenges of raising a family. In this section of the paper I want you to thoughtfully discuss four issues that stood out to you as you prepared the family budget.PERSONAL FEELINGS AND THOUGHTS ABOUT THE ECONOMIC FUTUREYour family is working to overcome the challenges brought on by student debt and raising a child. Such challenges often lead to economic difficulties in the moment and for years to come. In this section of the project you need to thoughtfully discuss your expectations for the family’s economic future. Issues to consider include: likelihood of pay raises and cost-of-living-adjustments, likelihood of being laid off, opportunity to save for emergencies, the children’s college education, and retirement.FINAL NOTEYour group’s job in this project is to accurately represent the present economic condition of your family. I don’t want you to try to convince me that everything is sunshine and roses or deathly tragic. If you believe that everything is great for your family, this is what you should present in your project. If you think your family is in a bad economic situation this is what you should present. Just be sure to clearly present the reasoning behind your perspective. FAMILY BUDGET PROJECTMONTHLY BUDGET LINE ITEMSMonthly Income from Jobs:$ ?????Taxes:$ ?????Description taxes: 13.6% of monthly incomeTithe: $ ?????Description of the tithe budgeted: ?????Comfort level of the family given how they are handling tithe (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Rent:** (make sure landlord would rent to a family of three)$ ?????Description of apartment/house rented: ?????Comfort level given the housing they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Renter’s Insurance:**$ ?????Description of insurance (coverage and deductible): ?????Comfort level given the level of insurance they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Health Insurance (medical only):** $ ?????(include 1/12 of the annual deductible and the coinsurance cost of one doctor visit and the coinsurance for one prescription into your monthly budgeted amount)Description of insurance purchased: ?????Comfort level given the level of insurance they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Car Payment: $ ?????(If you forgo a car, explain why) (If you only use 1 car, explain why)Comfort given the car they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Car Insurance:**$ ?????)Comfort level of given insurance coverage they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Car Registration: ($10/month if you own a car)$ ?????Car Upkeep: (include annual smog check if in state)$ ?????Description of upkeep costs: ?????Comfort level of the given the amount of upkeep they will be able to do (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Transportation: (if no car)$ ?????Description of transportation (if bus, must include actual busses to be taken and timing of bus pick-ups and drop-offs for work/school routine; if bicycle, must include routes, mileage, handling of children, rainy day contingencies, and readiness/appearance for work upon arrival for work/school days): ?????Comfort level given the transportation they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Day Care & After-school Care (must be licensed):**$ ?????Description of care provided: ?????Comfort level given day care and after school care they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Cell Phone Bill:$ ?????Description of service: ?????Comfort level given cell phone service they have (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Water Bill:$ ????????Comfort levels given the water they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Gas & Electricity:$ ?????Description of usage (i.e., rationing or not): ?????Comfort level given the gas and electricity they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Garbage Collection(mention if included):$ ?????Gasoline: (if owns a car)$ ?????Description of amount purchased: ?????Reason for rating: ?????Hair Cuts:$ ?????Description of place/person and frequency: ?????Comfort level given hair-cuts they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Clothing: (e.g., replacement/new sizes)$ ?????Description of clothing purchased: ?????Comfort level given clothing they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Food: (daily budget x 30)$ ?????Description of line item: (see Daily Food Budget)Comfort level given food they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Sundries: $ ?????Catch-all for personal care products (e.g., toilet paper, tooth paste and tooth brushes, feminine products, shampoo, body soap, laundry soap, deodorant, make-up, etc.)Description of items (including quality of items) purchased: ?????Comfort level of the given the sundries they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Miscellaneous:$ ?????Catch-all for all the necessities of life that don’t fall nicely into on of the other budget categories (e.g., paper towels/napkins, summer sports league fees, batteries, birthday/Christmas gifts, school supplies, money for a field trip, eating out, Starbucks, going to a movie, new video games, new lunch box and on and on)Description of items: ?????Comfort level of the given the miscellaneous items they have access to (not how much spent):veryverycomfortablecomfortableneutraluncomfortableuncomfortable?????Reason for rating: ?????Total Monthly Income:$ ?????Total Monthly Expenses: (-)$ ?????Balance:?$ ????? (e.g., - $ 1,497)** Verification of budgeted amount must be attached to projectPLAN / SUGGESTIONS FOR BALANCING THE BUDGET(please be thoughtful)Suggested cuts to budget line items that would hurt, but not be life threatening:Descriptions of Each Suggested CutAlong with Hardship Created by Each CutAmount Saved?????$ ??????????$ ??????????$ ??????????$ ??????????$ ??????????$ ??????????$ ??????????$ ?????Sub-total$ ?????Suggested/proposed programs/benefits (government or private) that should be provided for familiesDescriptions of Each Suggested/Proposed Program/BenefitAlong with Suggested Sponsorship (government or private)Amount Saved?????$ ??????????$ ??????????$ ??????????$ ??????????$ ??????????$ ??????????$ ??????????$ ?????Sub-total$ ?????“Balance” from Budget:$ ?????Total Savings from Above: (+)$ ?????New Balance:?$ ????? (e.g., + $ 125)ISSUES RAISED BY THE BUDGETING PROCESS(please be thoughtful)Issue #1?????Issue #2?????Issue #3?????Issue #4?????GROUP’S FEELINGS AND THOUGHTS ABOUT THE ECONOMIC FUTURE(please be thoughtful and include reasoning behind conclusions)?????DAILY FOOD BUDGETBreakfastFood item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????LunchFood item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????DinnerFood item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Food item: ?????$ ?????Total cost:$ ?????EVALUATIONFAMILY BUDGET PROJECTDescription of Line Items - (40 points)Group briefly described each line item in the budget—even if not funded in budget (including what the dollar amount being spent AND the reasoning behind the “comfort” rating provided)Plan/Suggestions for Balancing the Budget (10 points)Group clearly (and thoughtfully) discussed how they would balance the budget through cuts in line items (including hardship created by cuts) and/or through programs/benefits (including proposed sponsorship—government vs. private) they think should exist to help families like the Smiths balance their budgets.Issues Raised by Budgeting Process (10 points)Group clearly presented 4 key issues raised by the budget preparation processGroup’s Feelings and Thoughts (5 points)Group thoughtfully described their personal feelings and thoughts about the family’s economic futureSupport Materials (10 points possible)Support materials for all marked (**) budget items were includedReadabilityGrammar, spelling etc.(5 points possible)Presentation – 20 pts.Clearly rehearsed, not reading slides, attractive layout, pictures on slides Less than 15 words a slide, between 7-10 minutesGraded together so if one partner messes up, both suffer. / 100 ................
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