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calculate percentages of income, including
what percent of income a specific expense
will be
discuss the implications of choosing to
save early for retirement or not
discuss the importance of having an
emergency fund in a savings account
P
lan
How to complete the activity
1. Study the model.
2. Answer the Critical Thinking Questions.
3. CompleteModel 3 as a team, using the methodology (there is a blank form available on the companion
website).
a. Decide what items should be included in the (real or hypothetical) family budget.
b. Decide on the percent of money to be budgeted for each item.
c. Calculate the amount of money to be budgeted for each item.
4. Complete the remainder of this activity (from Demonstrate Your Understanding through Assessing
Your Performance) on your own, or as directed by your instructor.
M
odel(s)
Exemplars and representations
M
odel
1: A S
tudent
B
udget
Content available online at companion website.
M
odel
2: A
n
E
mpty
N
est
B
udget
Scenario:
Jim and Sue are a middle-aged married couple with a joint income of $78,000 per
year after taxes. Their children are grown, they own their own home and are debt-
free, but they contribute $500 a month towards nursing home care for an elderly
relative.
Step
Model
1.
Locate an appropriate
budget worksheet
I will use the detailed Dave Ramsey Monthly Cash Flow Plan
available from the companion website but I will not complete all the
sub-categories
2.
Determine items that are
missing or superfluous
Add a category for Nursing Home expenses.
Delete the category for Debts.
Separate the Savings and Insurance categories.
8.4 Budgeting