Managing Your Money. Day 3. MONTHLY EXPENSES. Every family has expenses that have to be paid for each and every month. There has to be money for buying food, transportation costs, medical needs, clothing, telephone, utilities, and even some unexpected costs.
Every family has expenses that have to be paid for each and every month. There has to be money for buying food, transportation costs, medical needs, clothing, telephone, utilities, and even some unexpected costs.
Setting money aside for each of these things is a wise way to plan. Planning for unexpected costs such as a medical emergency or vehicle breakdown is always a good idea. If a family puts some money in savings for these types of unexpected costs, they will have money ready when something comes up.
If you wrote A or B on the line for #55, use the information from the chart on the left to figure out how much clothing costs would be for your family. If you wrote C, D, E, F, G, or H in the space, use the information from the chart on the right to figure out clothing costs for your family. The tables below are examples.
EXAMPLES: Write your answers on your finance packet.
Chances are you’ll want wheels of your own. Life offers several choices of vehicles in two categories, new and used. Listed costs are monthly loan payments based on a five-year-loan. Maybe in real life, you’ll pay cash or lease a vehicle, but not in this exercise.
#59-60 - On your Finance Paper – From the Vehicle Cost Chart determine which type of vehicle you want and whether you will buy it new or used. Write this information on your finance packet #59. Write your vehicle cost in #60.
People buy insurance to protect themselves in case of an accident, theft or illness. Insurance doesn’t prevent these misfortunes from happening but it does help cover the cost when they do occur. For the protection, you pay the insurance company a set amount each month. Accidents happen!
The cost of auto insurance depends on how much the policy covers, the type of vehicle you drive and where you live. If you have a wreck or get a traffic ticket, your insurance rates usually go up. For this exercise, let’s go with the national average.
#63-64 - On your Finance Paper – Write $65.00 for your insurance and if you have a wife/husband, write $65.00 for her/him then figure the Total Insurance Expense and write this in #64. If you’re single, you’ll only have an insurance expense for yourself.
#65-84 - On your Finance Paper – Fill in the chart for #65-83 with the information from the grocery store websites and determine your Total Food Expense and write this in #84.