Unit II - Budgeting Case Study.docx - CASE STUDY –...

CASE STUDY – Budgeting
In this Case Study, you will explore the basics of budgeting, from setting priorities, creating a savings
goal, tracking spending and learning about tradeoffs required to achieve financial goals. Next, you will
assist a friend by providing financial advice to learn to develop various options and strategies to
achieve a budgeting goal.
How Do I Budget?
All of Emily’s friends know who to turn to if they have money questions. Emily attributes her financial savvy to
the summer jobs she has held over the past four years. These jobs helped her save a few thousand dollars for
college to minimize her student loans. Her friend, Jenna approaches her the summer before their Senior year
of high school, confessing she has a whopping $56.47 saved for college even after working part-time jobs for
the past three years! Emily asks Jenna what she could do to manage her money more effectively. Emily’s
answer is one word - budget.
Emily asks Jenna to describe her goals and current spending habits. Jenna responds in the following way:
“College costs a lot more than I thought, and my parents expect me to pay for my living expenses on
campus. Those are going to be around $3,000 per year! I am used to working a part-time job and going
to school, but I'm not sure I can handle both anymore. Budgeting seems like a great idea, but where do