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A Budget Case Scenario
Paul and Kate are recently married. Paul’s net pay per month is $2,000. Kate works part-time
and has a net income of $800 per month. Kate also receives $200 per month from a trust fund
set up by her family. The payments will end when Kate turns 30, which is in 3 years. Paul and
Kate are eager to buy their first house and have been evaluating their financial situation. They
have managed to save $6,000 but neither has begun saving for retirement. Their monthly bills
are as follows:
$750 Rent
$120 Utilities
$80 Car Insurance
$240 Food
$65 Cell phone
$40 Cable
Using the income and expense information provided, populate the budget worksheet. Be sure
to save at least 10% for savings. When finished, answer the questions that follow.
Income Source
Total
Income Grand Total
Expense Source
Total
Expenses Grand Total
Income Grand Total – Expenses Grand Total
1. Based on the financial budget, should Paul and Kate buy the new house? Why or why not?
___________________________________________________________________________________
___________________________________________________________________________________
2. Looking at the expenses, what changes could the couple make to improve their financial
health?
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$180 Health Insurance
$500 Childcare
$120 Gas and automobile maintenance
$200 Student Loans
$160 Credit cards
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Section 18 – Planning For Your Future