Chapter 7 notes
Popular in Management for Consumers
verified elite notetaker
Popular in Department
This 2 page Class Notes was uploaded by Jocelyn Norfleet on Sunday October 4, 2015. The Class Notes belongs to FCS 103 at Illinois State University taught by Donald Meyer in Fall 2015. Since its upload, it has received 24 views.
Reviews for Chapter 7 notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/04/15
Management For Consumers Chapter 7 Creating a Living Budget How much do Americans an 7 gt A planned quotlivingquot budget needed Ann Income Families Force open issues of scarcitv0pportuni39 Necessitates decision making Forces establishment of priorities 0 Manage money in a systematicrational Keeps you aware of spending habits Democratic Decision Making 0 If more than one in household who should quotbreadwinnerquot not only primary decision 0 Many households have more than one in o All involved whether they are bringing hc i expenses lt50000 money is frequent cause of family problems 0 Not always agreement on nal decisions Familv Council 0 Important to include all family members 0 May or may not involve quotformalquot meetings 0 May want to provide advance notice to allow prep 0 May ask for paper input may be easier 0 May even include quotcontractsquot with children Preparing for College Rising costs of education exceeding in ation especially with public schools 0 Financial quotgrantsquot declining more quotloansquot 0 What is the best approach to paying for family college expenses Making a Budget Directly related to quotvaluesquot as well as income 0 Determine family goals 0 housing 0 VM 0 College planning 0 Transportation 0 Medical coverage 0 Life span goa Item Percent o Shouldn t be a quotstraightjacketquot need My Income 0 May need quotmidcoursequot corrections Why Job los Shelter 34 How Does a Tvpical Household Allocate Income 49067 A Median Income Mean Income Total Families Transportatio 156 TVpical Household Income Allocation p d 130 Largest chunk goes to housing Operation main L cce 11 30 0 Food clothing transportation insurance 39 0 These usually account for about 80 of income lnsurPens39 Other 1040 Entertainme 550 nt Healthcare 64 Clothing 35 0 personal and medical can also be signi cant 0 As income goes up food percentage housing rises Housing may at some point shift to luxury good Luxury Good 0 A good whose purchase increases more than in proportion to increases in income 0 Can be 0 housing 0 jewelry 0 gourmet foods 0 expensive cars Fixed Expenses Expenses that occur at speci c times and cannot be altered What are some expenses that become xed in a budget 0 Examples Utilites Internet Rent Car payments Child support 0 College loans Flexible Expenses Expenses that can be changed in short run 0 What are examples of exible items in budget 0 Examples Clothes Food Entertainment Vacations Savings travel Construct Annual amp Monthlv Budget Look at typical monthly rst Include regular income not gifts Identify xed Costs List exible Items you include Compare the quottakehomequot pay with expenses Don t forget quotannualquot payments as well Review your budget regularly 00000 000000
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'