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

Feeding Your Family

Make all of the appropriate calculations on the previous page and decide how much money you have left over to go shopping for the family groceries this week. Please list below and on another sheet of paper if necessary your shopping list, including the cost of each item. Also list or explain any assumptions you may make about your family's eating or buying habits.

Funded in part by the National Science Foundation and Indiana University 1995