Unformatted text preview: 2 FDMAT 108 - Budgeting Case Study Excel File
Step 1. Hover Mouse here to begin. Step 2. Type in Seth's Remaining Receipts. Semesterly Income
Financial Aid Co mput e Seth 's ne w S aving s Balan ce by rem oving h is
Semes terly Expen ses a nd add in g his S emes terly Income. 50.00 Estimated Total Semesterly Income: Semesterly Expenses
Housing Step 4. Tuition Set a New Mon thly Goal for Seth t hat will balance his
bud get an d kee p him from s pen din g more th an he ha s. Textbooks
School Supplies Step 5. Tithing (Special Income) Typ e a d etailed d escription in th e text box #5 (b elow) of
how Seth will ne ed to chang e his s pen din g hab its t o m eet
your n ew "Mo nth ly Goal" for his b udg et. Date
1/3 1st Semester Combined Total 1/3 Hint 975.00 1,950.00 1,960.00 3,920.00 1/3 385.42 770.84 1/3 1/3 14.25 28.50 1/3 55.00 105.00 1/5 6,774.34
New Savings Balance 1/7 8,615.00 2,890.66 1/6 Hint 1/8
1/8 Monthly Income
Total Monthly Income: 1. W hat le sso ns have you learn ed in h elp ing S eth ga in
con trol o f h is fin ances on th is "Bud geting Case S tud y"? Monthly Expenses 2. H ow m igh t you app ly thes e les sons t hat you h ave
learned to you r own bu dge t and/or teach oth ers ab out
thes e principles? Tithing Taxes
Groceries New Monthly
Goal #4 1/8
1/9 135.00 135.00 Hint 626.65 149.54 Hint 761.65 284.54 1/9
1/10 January New Monthly Goal Hint
13.50 Charitable Donations #5 January 5.00 1/11 13.50
5.00 0 1/11 0 1/18 31.04 31.04 0 1/18 414.34 150.00 -1 1/18 Eating Out 34.01 10.00 -1 Cell Phone 99.98 40.00 -1 Travel 40.00 20.00 -1 Gifts 58.39 10.00 -1 Entertainment
Total Monthly Expenses: Cash Flow Summary
Total Cash Flow: 60.50 0.00 4.89 5.00 -1
January New Monthly Goal
Goal: get this to zero. Hint 0.00
Goal: get this to zero. Seth's Final Savings Balance at the end of Two Semesters
New Savings Balan ce - Total of S avings With drawals: 1,217.23 Hint This s hould be zero or
Green means good.
Red means bad. Remember to document your changes. #6
1. What lessons have you learned in helping Seth gain control of his finances on this "Budgeti ng Case Study"?
Even though there are burdens that Seth will take on maybe mentally and/or emotionally in try ing to keep control of his finances, the outcome at the end will be worth it. It will be worth it because when you hav e
learned control over something, not only are you becoming a more capable for that control, but also the trust you have learned to develop in y ourself is paramount to y our character and in believ ing in yourself. I have
also seen the value in relying on yourself and y our own capabilities, as well as increasing y our own capabilities, in order to entertain yourself and learn to value and show your appreciation for the people around you.
The v alue of life is only as important as what you determine life's v alues to be.
2. How might you apply these lessons that you have learned to your own budget and/or teach others about these principles?
I hav e worked to apply these budgeting lessons - of allowing money to stay in my ac count no matter w hat and to not spend more than I will have after all of my expenses are taken out. Ov er the past year, I have
developed my ow n plan for managing my check ing account, which I admit, I have become lackadaisical about in past months due to overwhelming financial burden and stress. This plan has 4 steps. S tep 1 - 10% of my
income goes towards my Tithing. Step 2 - 20% of my income goes towards my Saving's Account. Step 3 - 30% of my income goes towards paying off debts and outstanding loans. S tep 4 - 40% of my budget goes towads
the rest of my week , such as gas, tuition, groceries, entertainment, pet care, etc. I think that I am going to switch steps 3 and 4 though, so that 40% of my paycheck goes towards pay ing off debts so that they will be
handled that muc h quicker. I have seen how important it is to have them off the shoulders of burden sooner rather than later. To teach others, I would like to develop a family home evening plan for my family when
ev eryone is home for family home everning to help them develop their own budget and teach about budgeting, including for my y ounger sister who is 13. Despite not having a consistent paycheck, she can learn early
on the importance of money. I would also like to share with loved ones different budgeting and savings apps I use such as Buddy and, my favorite, Digit, co. #1 Seth's Receipt Record Hint 50.00 Estimated Total Semesterly Expenses: Writ e a reflectio n paragraph in the text b ox #6 ( at leas t 35 sent ences) t hat re spo nse to ea ch of th e fo llowing
reflection qu estions . Seth's previous grocery budget was $414.34. I changed hi s new
monthly goal to $150. Seth can accomplish this goal by
eliminating eating out & fast food, as well as preparing his own
meals at home. If it is an option for him, Seth could go home
and take leftovers and/or meals from his parents. Also, Seth
only need buy the staples each month - protei n and healthy
foods as well as food that you can buy in bulk - ramen noodles,
beans, tortillas, cheese, milk, etc. This will not only help to give
him multiple food options to make so that he i sn't eating the
same meals repeatedly, but will help save his budget because
these foods are not expensi ve and can be bought on the budge
that he has for the entire month. Seth should also cut out
unnecessary foods such as sweets, chi ps, sodas, etc. unless
absolutely v ital and if they can be afforded in his budget. As for
eating out, there is a new $10 budget instead of $34.01 for
minor splurges. Seth's previous cell phone budget was $99.98.
Hi s new budget i s $40. I'm not sure if it was entertainment on
his phone allowing for hi s cell phone bill to be so high, or an
outlandish plan, but almost $100 is not feasible for living smart.
My own budget for a high quality cell phone, wi th unlimited
data, calls, and text, is $40, so I know that it is possible. Seth
needs to seek out a better deal with his cell phone company or
switching companies if necessary. Also, any games or apps on
his phone that are subscriptions or cost money for extra perks
should be eliminated. Seth's previous budget for travel was $40.
Hi s new budget i s $20. This budget is possible by not drivig hi s
own vehicle as much. Seth mi ght i nvest in look ing for a bicycle
he can get for an inexpensive price, walking, using a skateboard
or another form of nonmotorized travel. Seth should also look
to public means of transportation, such as the bus or train. Seth
should also look into carpooling, which is not only better for the
environment, but will help him and whoever he carpools with to
save money monthl y. Seth's previous entertainment budget was
$60.50. His reformed budget is now $0. Until Seth is in a
financial situation where his Sav ings amount is increasing
instead of decreasing, and Seth can survive on the money
comi ng from his paycheck singularly, he needs to desist
spending money on entertainment. Seth can find other ways of
entertaini ng himself, such as learning a new skill, investing more
time to his schoolwork , finding creative ways to either spend his
free time and/or to go on dates, spend time with friends, etc.
This can be done geocaching, hik ing, nature walks, boardgames,
team sports, creating scavenger hunts, learning a new language,
picnics, etc. The previous budget for Seth for gifts was $58.39.
The budget for thi s now is $10. Seth should find creative and
handmade ways to show his appreciation for those he loves in
his life who he would previousl y give gifts for. The most
important gifts are the ones that are heartfelt and full of
meaning. Whether this comes with or without a pricetag, it's
the relationship and the communication behind the gift(s). I also
increased Seth's miscellaneous budget from $4.89 to $5. This
category can be extra money for other categories or for minor
expenses that may pop up. #3 1,000.00 1,050.00 Previous Savings Balance For e xa mple , su ppo se you lo we red Se th's grocery b udg et.
Then you wou ld n eed to explain wh at things S eth s hou ld
buy, how often h e s hou ld bu y t hem, and h ow m uch he
shou ld p ay for them in orde r to make your n ew g rocery
plan fo r him work. Provide det ailed co mment s for each
ch ange you m ake. Step 6. 2-Semester
1st Semester Combined Total
500.00 Other Income Step 3. 1/23
1/23 #2 1/23
1/27 Expense Category Payment Method Gauss's Market start of semester groceries $ 150.78 Groceries Debit Card The Housing Place Store first semester housing contract $ 975.00 Housing Check tuition
textbooks BYU-Idaho Bursar's Office
Financial Aid Office
Mom & Dad Details Amount $ 1,960.00 $ 385.42 scholarship money $ 500.00 birthday gift for me $ 50.00 Other Income Cash $ 55.00 Tithing (Special Income) Direct Deposit $ 4.88 Eating Out 5.00 Charitable Donations Cash 9.75 Eating Out Debit Card The Church of J esus Christ of
Latter-day Saints scholarship and gift tithing Frozen Berry Shoppe ice cream (date with Sarah) The Church of Jesus Christ of Latterday Saints fast offering $ Crossroads Cafeteria forgot my lunch $ Tuition Debit Card Textbooks Credit Card Financial Aid Direct Deposit Cash My Boss first paycheck $ 67.50 Paycheck Direct Deposit The Government taxes paid directly from my paycheck $ 15.52 Taxes Payroll Deduction Fuel Center regular fill up for my car Travel Credit Card The Church of Jesus Christ of Latterday Saints
BYU-Idaho Bookstore $ 20.00 blessings! $ 6.75 Tithing notebooks and pens $ 14.25 School Supplies Cash 4.89 Miscellaneous Credit Card 19.38 Eating Out Debit Card Entertainment Credit Card BYU-Idaho Bookstore ear muffs $ Crossroads Cafeteria lunch date with Sarah $ 32.00 The Fun Center Check lazer tag with my roomates $ Gauss's Market weekly groceries $ 75.32 Groceries Debit Card Local Bowling Place bowling and pizza (with Sarah and friends) $ 28.50 Entertainment Credit Card weekly groceries $ 148.22 Groceries Debit Card Bix Box Store gift for Sarah $ 58.39 Gifts Credit Card The Cellphone Company Gauss's Market monthly cell phone bill $ 99.98 Cell Phone Debit Card My Boss second paycheck $ 67.50 Paycheck Direct Deposit The Government taxes paid directly from my paycheck $ 15.52 Taxes Payroll Deduction 40.02 Groceries Gauss's Market weekly groceries $ Fuel Center regular fill up for my car $ 20.00 Travel Credit Card The Church of Jesus Christ of Latterday Saints Blessings $ 6.75 Tithing Direct Deposit Debit Card Seth's Background Story Seth has just finished the first month of his first semester of
college. He has decided it is finally time to take the advice he
heard in one of his classes and start his own personal budget! What he typed in already...
Seth has collected the receipts from all his purchases since the start
of the semester. Today he finally sat down and started typing his
receipts into his budget. Your job is to help him finish.
Seth arrived at school on January 3rd and did a lot of spending. As
you can see in "Seth's Receipt Record," he bought groceries for
$150.78, paid his housing contract for the semester at $975, paid his
semester's tuition of $1,960, and bought his textbooks for $385.42.
He received a $500 scholarship that he will get every semester. He
also received a $50 cash birthday gift from his parents. He paid
tithing of $55 for the gift and scholarship money he received.
On January 5th, Seth took his friend Sarah out on a date for ice
cream, which cost $4.88. He paid a $5.00 Fast Offering at church on
January 6th. On the first day of school, January 7th, he forgot his
lunch and bought lunch at the Crossroads Cafeteria, which cost $9.75.
The next day he got his first paycheck for $67.50, which had his taxes
of $15.52 taken out directly. He also put $20 worth of gas in his car
and paid his tithing online that night for his paycheck ($6.75).
The next day, January 9th, he purchased notebooks and pens from
the Bookstore for $14.25. Later that day he returned to buy some ear
muffs for $4.89. Rexburg was colder than he expected! He also paid
for lunch at the Crossroads Cafeteria with Sarah for $19.38. Friday,
the 10th, he played lazer tag for $32. Saturday, the 11th, he bought
weekly groceries for $75.32. That night he went to dinner and bowling
with Sarah and some friends for $28.50.
On the 18th he bought groceries again for $148.22. He also decided
to buy a gift for his friend Sarah for $58.39 since he was out shopping
already. Later that night he remembered to pay his monthly cell
phone bill online for $99.98.He was happy to get his second paycheck
of the usual $67.50 on the 23rd and recorded the $15.52 in taxes
that was removed. What Seth needs help with...
Now is where Step #2 begins. Help Seth finish typing in his
last three receipts for January (shown to the left). He
purchased "weekly groceries", put in his "regular fill-up
for my car", and paid his tithing, or as he would write in the
description: "blessings!" One final thing needed for Steps #3 and #4...
Prior to the start of school, Seth saved up $8,615. He needs
your help in coming up with a Monthly Spending Goal that
ensures he doesn't run out of money before the end of the
first year of school. In short, he needs a budget plan. Cash Financial Aid Check Other Income Credit Card Housing
Debit Card School Supplies
Tithing (Special Income)
Miscellaneous 0 Winter 2018 Winter 2018 50%
Grade Number Correct Semesterly Income 44 January Financial Aid
Other Income 25%
Grade Balanced Budget Yes Written Comments &
Caution: did you type in your
explanations for your new Monthly Goal
for Seth as explained in Step #5?
Also, did you type in a reflection
paragraph detailing what you have
learned from this Budgeting Case Study
as explained in Step #6?
This part will be graded after you submit
this Case Study to I-Learn.
Make sure you demonstrate the
Quantitative Reasoning Process as you
give specific insights to Seth on how to
live within your new budget goal for him
in Step #5. Seth's Receipt Record
1/3 Estimated Total Semesterly Income: Correct Semesterly Expenses of your
Grade #3 Correct Out of 44 Possible 25% 2-Semester Estimated Total
Correct January 1/3 Estimated Total 1/3 Housing Correct 1/3 Tuition Correct 1/3 Textbooks Correct 1/3 School Supplies Correct 1/3 Tithing (Special Income) Correct 1/5 Estimated Total Semesterly Expenses: Correct 1/6 Previous Savings Balance New Savings Balance 1/7 Correct 1/8 #5 1/8
1/8 Monthly Goal (7 months) Monthly Income #4 1/8 January Paycheck
Correct Savings Withdrawal 1/9 Correct 1/9 Correct 1/9 Total Monthly Income: 1/10 Monthly Expenses January Monthly Goal 1/11 Tithing Correct Correct 1/11 Charitable Donations Correct Correct 1/19 Taxes Correct Correct 1/19 Groceries Correct Correct 1/19 Store Details Expense Category Payment Method Gauss's Market start of semester groceries 150.78 Groceries Debit Card The Housing Place first semester housing contract $ 975.00 Housing BYU-Idaho Bursar's Office tuition $ Amount 1,960.00 Tuition Debit Card BYU-Idaho Bookstore textbooks $ 385.42 Textbooks Credit Card Financial Aid Direct Deposit $ Check Financial Aid Office scholarship money $ 500.00 Mom & Dad gift to me for starting school $ 50.00 Other Income Cash The Church of Jesus Christ of
Latter-day Saints scholarship and gift tithing $ 55.00 Tithing (Special Income) Direct Deposit ice cream (date with Sarah) $ 4.88 Eating Out The Church of Jesus Christ of Latterday Saints fast offering $ 5.00 Charitable Donations Crossroads Cafeteria forgot my lunch $ 9.75 Eating Out Debit Card My Boss first paycheck $ 67.50 Paycheck Direct Deposit The Government taxes paid directly from my paycheck Taxes Payroll Deduction Fuel Center Travel Credit Card Frozen Berry Shoppe Cash
Cash $ 15.52 regular fill up for my car $ 20.00 The Church of Jesus Christ of Latterday Saints blessings! $ 61.75 Tithing BYU-Idaho Bookstore notebooks and pens $ 14.25 School Supplies Cash BYU-Idaho Bookstore ear muffs $ 4.89 Miscellaneous Credit Card Crossroads Cafeteria lunch date with Sarah $ 19.38 Eating Out Debit Card Entertainment Credit Card The Fun Center Check lazer tag with my roomates $ 32.00 Gauss's Market weekly groceries $ 75.32 Groceries Debit Card Local Bowling Place bowling and pizza (with Sarah and friends) $ 28.50 Entertainment Credit Card Gauss's Market weekly groceries $ 148.22 Groceries Debit Card Bix Box Store gift for Sarah $ 58.39 Gifts The Cellphone Company monthly cell phone bill $ 99.98 Cell Phone Debit Card My Boss second paycheck $ 67.50 Paycheck Direct Deposit Credit Card The Government taxes paid directly from my paycheck $ 15.52 Taxes Payroll Deduction Eating Out Correct Okay, explain eating out plan. 1/23 Cell Phone Correct Okay, explain cell plan. 1/23 Travel Correct Okay, explain travel plan. Correct Correct Correct Correct Correct Correct Gifts Correct Correct Correct Correct Correct Correct Correct Correct Entertainment Correct Okay, got entertainment ideas? Correct Correct Correct Correct Correct Correct Miscellaneous Correct Correct Total Monthly Expenses: Cash Flow Summary
Total Cash Flow: #2 2020 January Monthly Goal Correct Correct This should be zero. 23-Jan
27-Jan This should be zero. Seth's Final Savings Balance at the end of Two Semesters
Must be zero or greater. Note My Receipt Record #4
Date Monthly Income January Income Label 1 0.00 Income Label 2 0.00 Customize these labels
Expenses Goal 0.00
January Expense 1 0.00 Expense 2 0.00 Expense 3 0.00 Customize these labels 0.00 0.00
Cash Flow Summary
Monthly Cash Flow: 0.00
0.00 0.00 0.00 0.00 0.00 Store Details Amount Expense Category Payment Method Cash Check
Debit Card ...
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