W04 Budgeting Case Study May 15, 2020 Kaitlen Dearing.xlsx - 2 FDMAT 108 Budgeting Case Study Excel File Step 1 Hover Mouse here to begin Step 2 Type in

W04 Budgeting Case Study May 15, 2020 Kaitlen Dearing.xlsx...

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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 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 1/8 Monthly Income Paycheck Savings Withdrawal 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 1/9 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 Miscellaneous Total Monthly Expenses: Cash Flow Summary Total Cash Flow: 60.50 0.00 4.89 5.00 -1 1 761.65 284.54 January New Monthly Goal 0.00 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 greater. 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 1/26 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 BYU-Idaho Bookstore 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 Payroll Deduc Tuition Direct DeposiTextbooks Debit Card School Supplies Tithing (Special Income) Paycheck Savings Withdrawal Tithing Charitable Donations Taxes Groceries Eating Out Cell Phone Travel Gifts Entertainment Miscellaneous 0 Winter 2018 Winter 2018 50% of your Grade Number Correct Semesterly Income 44 January Financial Aid Other Income 25% of your Grade Balanced Budget Yes Written Comments & Reflection Paragraph 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 Date 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 26-Jan 27-Jan This should be zero. Seth's Final Savings Balance at the end of Two Semesters Correct 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 Total Income: Expenses Goal 0.00 0.00 January Expense 1 0.00 Expense 2 0.00 Expense 3 0.00 Customize these labels 0.00 0.00 Goal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Expenses: Cash Flow Summary Total Income Total Expenses Monthly Cash Flow: 0.00 January 0.00 0.00 Goal 0.00 0.00 0.00 0.00 0.00 Store Details Amount Expense Category Payment Method Cash Check Credit Card Payroll Deduction Direct Deposit Debit Card ...
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