21st Century Student FinLit -Getting Personal SW

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LET’S PRACTICE

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7. You just got a new job with a 25% salary increase. Congratulations! How will this impact your budget? _ ____________________________________________________________________ _ ____________________________________________________________________ 8. For a year now, Alicia has been earning about $50 a month reselling household items and clothes on EBAY. Should she include this in her budgeted income? Explain. _ ____________________________________________________________________ _ ____________________________________________________________________ 9. This chart shows James’ budget items for the last month. Identify whether each expense is Mandatory or Discretionary. EXPENSES BUDGET Mandatory/Discretionary? Rent $600 Mandatory Groceries $200 Mandatory Transportation $360 Mandatory Media Subscriptions $55 Discretionary Utilities $160 Mandatory Credit Card Payment $225 Mandatory Restaurant Meals $350 Discretionary Insurance $250 Mandatory Student Loan Payment $350 Mandatory Retirement Account Contribution $100 Treat as Mandatory! Investment Portfolio Contribution $125 Discretionary but high priority! Guppies and Puppies Donation $25 Discretionary Concert Tickets $80 Discretionary Traffic Ticket $200 Mandatory 10. James wants to cut $400 from his expenses each month and invest the money he saves. Suggest three ways he can do that, based on his last month’s expenses. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ PRODUCT PREVIEW

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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 279

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