Family Budget

Susie Shafer Paula Lincoln Debbie Wilch

Class: General Math, Pre-Algebra, or Algebra

Materials: Grocery store sale ads, scratch paper, budget sheet (included).

Goals: Developing group work skills, model revision skills, decision making based on budget, facility with percentages, and arithmetic skills

Technology Required: Calculator

Problem:

Each group will choose 2 pieces of paper at random. One of these will give the family size and ages, and the other will give the family income which the group will have to use to determine their budget. Each 'family' will then be given a worksheet outlining the expenses they must deal with every week or month, as well as some 'extras' they may spend their money on if they have any left over. If they do not have enough money, they will then have to go back and figure the budget again making some less expensive choices. After the family budget is decided and agreed to by everyone, the family will then be given one or two local grocery store ads which will be used to 'go shopping' to see if they budgeted enough to feed the family for a week.

Expected Product:

Worksheet with budget worked out, menu for the week, shopping list with total grocery bill.

Evaluation:

Grade should be based on: individual work, contribution to the group, group organization and approach to the problem, analysis and execution, and group presentation (especially the reasons for choices).

Extensions:

1. Discuss how the same budgeting process could be extended to an institution.

2. Make allowances for food stamps and housing subsidies for low income families.

3. Consider a part-time job for if there is an older teenager in the family. (Do not assume more than 25 or 30 hours per week and not more than minimum wage, \$4.25/hr.)

Family Budget

Occupations

The following table should be cut into 16 separate pieces which are to be folded over and one selected at random by each group (family) to determine their annual income. Single parent families must choose only one of the jobs, and two parent families must decide whether one of them will be staying home to take care of the children and home or if they both work. In either type of family it must be decided whether or not day care is necessary.

 Engineer \$49,195 Computer Prog. \$34,000 Lawyer \$62,700 Elem. Teacher \$30,600 Doctor \$150,000 Food Service \$13,000 Receptionist \$13,500 Postal Carrier \$26,500 Food Service \$9,600 Lab Technician \$29,160 Barber/ Beautician \$20,000 Sec. Teacher \$33,200 Carpenter \$20,600 Bank Teller \$14,200 Real Estate \$19,000 Physical Therapist \$34,000 Electrician \$26,200 Retail Sales \$10,965 Mechanic \$31,200 Cleaning Service \$13,500 Auto Sales Manager \$35,300 Pharmacist \$41,300 Truck Driver \$24,120 Nurse \$18,850 Librarian \$25,300 Secretary \$24,100 EMT \$19,097 Travel Agent \$17,825

Family Budget

Families

The following table represents some possible family units which should be cut apart & chosen at random. The numbers represent the ages of children.

 Single Parent 16, 12, 9 Two Parents 14,13,10,6,1 Single Parent 15,8 Single Parent 17,14,12 Grandparent Two Parent 16,13,10 Two Parents 14 Single Parent 13 Two Parents 14, 11 Grandparent Single Parent 15,14 Two Parents 17,16,13 Two Parents 13,10,5 Two Parents 14,3,6 mos.

Family Budget

Use a pencil and scratch paper; you will probably need to revise it.

Annual Income \$_____________

Taxes & Deductions (Assume 20% of income) \$_____________

Savings (Try to save 3% to 7% of annual income) \$_____________

Housing (See chart below) \$_____________

 Small / 2 Bedroom Large / 3-4 Bedrm. House (Mortgage) \$405 per month \$512 per month Apartment (Rent) \$369 per month \$459 per month

Average utility costs: Small house  \$125, Large house  \$170, Apartment: 2 Bedroom  \$65, 3 Bedroom  \$90.

Utilities (Average monthly cost) \$_____________

Transportation \$_____________

 Small (older) Large (older) Small (newer) Large (newer) Gas/Upkeep \$30 /week \$45 /week \$20 /week \$30 /week Payments \$75 /month \$125 /month \$185 /month \$349 /mon Insurance* \$130/ 6 mo. \$195/ 6 mo. \$295/ 6 mo. \$415/ 6mo.

*Need to add \$215 every 6 months for each teen-age driver in the family.

Clothing (Assume \$275 to \$425/person/year.) \$_____________

Miscellaneous (Assume \$12 to \$15/week/person) \$_____________

Entertainment \$_____________

Allowance (Amount each child should get per week.) \$_____________

Family Budget