Question

CHAPTER 3 FINANCIAL PLANNING CASE 1 What situations might have created the budget deficit for the Constantine family? Tanswer here; insert rows if necessbry) Rent Electricity, water Telephone Cable, internet Food (at home) Food (away) Auto payment Gas, oil changes Insurance Clothing Personal, gifts Donations Savings TOTAL SPENDING Current Suggested Spending Soending 950 120 55 125 385 230 410 140 125 200 185 50 $ 3,010 $ (this will change) TOTAL MONTHLY AMOUNT AVAILABLE $ 2,800 2,800 (don't change this) SURPLUS/DEFICIT 3- not required. S (210) 3 2.800 (this will change)

Answer 1

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Answer(1):

One of the main reasons was due to improper planning and control in the budget activities for the family. The family's budget majorly focussed on house rent (34%) which could have been curtailed by staying in lower rent homes. Alternative solutions and substitutable facilities were not researched for efficient savings in the budget planning.

Answer(2):

Current budget Details 1. Rent 2. Electricity water 3. Telephone 4. Cable, Internet 5. Food (at home) 6. Food (away) 7. Auto payment 8. Gas, oil changes 9. Insurance 10. Clothings 11. Personal gifts 12. Donations 13. Savings Total spendings Total monthly amount available Surplus(deficit) Revised budget $950 $700 $120 $120 $55 $55 $125 $125 $385 $450 $230 $100 $410|| $350. $140 $140 $125 $125 $150 $200 $150 $25 $310 $185 $50 $35 $3,010 $2,800 ($210) $2,800 $2,800