Family Budget

Directions – The number of people in your group is the same number of people that will be in your “family” for this activity. Look at your family’s paycheck and answer the following questions.

Needs: Wants:

Groceries: $300.00 Clothing: $100.00

House Payment: $500.00 Entertainment: $120.00

Electricity: $75.00 Cable: $35.00

Car: $250.00 Savings: $200.00

Car: $370.00

Gas: $100.00

Car Insurance: $100.00

Savings = $1200.00

1. Total the family's income for the month. _________________

2. Determine how much money is left after the needs have been met. ____________________

3. If there is no money (or not much) left for your wants and goals, decrease these items

accordingly. (NOTE: You cannot change your needs in any way. The only way to eliminate

a need would be for another family in the room to agree to buy it and for them to

add it to their budget.)

List changes here:

4. Decide how this family is going to save. Be specific about the form of savings.

5. What other needs, wants, or goals should be added? Figure those into your budget and list

below.

6. Unforeseen Economic Forces and Their Effects: Inflation

Which needs and wants would increase in price with inflation?

How would the budget have to be adjusted to combat the effects of inflation? Be specific.

7. Unforeseen Economic Forces and Their Effects: Unemployment

The member of your family who makes the least amount of money is fired/laid off for four months with only $300.00 a month in unemployment. What effect will this have on your family? Be specific about the changes that will need to be made to the budget.

Can you get to your savings? (Is it accessible?)

If this family member were out of work for six months, would the family survive?

8. Unforeseen Expenses and Their Effect: Babies

A new baby is to soon enter the household. Budget into needs $300.00 for daycare, $80.00

for formula/baby food, and $30.00 for diapers.

In what other budget areas might adjustments have to be made to accommodate the new

family member? Be specific.

How does the new edition to the family impact the "family" budget? Explain.