• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Prepare a monthly budget for Ms Masters that would account for the needs of each person in the family.

Extracts from this document...

Introduction

The Task Ms Masters earns a salary of J$40,000 each month after all statutory deductions have been made. She is a single parent with two children ages 2 years and 14 years who both live with her. She gets J$5,000 per month for child support. She pays J$7,000 per month for rental, uses both electricity and water and has a loan with a furniture store for which she pays J$516 per year. She does not have a landline telephone. 1. Prepare a monthly budget for Ms Masters that would account for the needs of each person in the family. If an Item is not in the budget, give a reasonable explanation of how that need would be met. ________________ Pre- Preparation What is a Budget? A (home) budget is a financial plan of one?s income and expenses, usually expressed over a period of one month. After adding up all your sources of income, you have established the total amount of money you have to spend. Next total all of your individual monthly expenses. ...read more.

Middle

Ms Master?s Budget Expenditure Week 1 Week 2 Week 3 Week 4 Total Rent $1,750 $1,750 $1,750 $1,750 $7,000 Hire Purchase Loan $516 $516 $516 $516 $2,064 Landline Telephone N/A N/A N/A N/A $0 Son aged 2 yrs $1,250 $1,250 $1,250 $1,250 $5,000 Son aged 14 yrs $2,250 $2,250 $2,500 $2,250 $9,000 Transportation $500 $500 $500 $500 $2,000 Savings $1,500 $1,500 $1,500 $1,500 $6,000 Food $2,000 $2,000 $2,000 $2,000 $8,000 Medical Insurance $1,000 $1,000 $1,000 $1,000 $4,000 Household Supplies $400 $400 $400 $400 $1,600 Miscellaneous $84 $84 $84 $84 $336 How the money is spent on the 2 year old Items Week 1 Week 2 Week 3 Week 4 Pampers $500 $500 $500 $500 Baby food $600 $600 $600 $600 Miscellaneous $150 $150 $150 $150 TOTAL $1,250 $1,250 $1,250 $1,250 How the money was spent on the 14 year old Items Week 1 Week 2 Week 3 Week 4 Lunch Money $1,500 $1,500 $1,500 $1,500 Transportation $500 $500 $500 $500 Stationeries $100 $100 $100 $100 Piggy Bank Savings $100 $100 $100 $100 Personal business $50 $50 $50 $50 TOTAL $2,250 $2,250 $2,250 $2,250 ________________ Areas that were excluded from this Budget and possible reasons as to why: 1. ...read more.

Conclusion

I have learnt that not only budgeting for oneself is important but also for individuals for which you are responsible. This will assure effective budgeting. Based on previous and presently gained knowledge, I implore individuals to engage in budgeting as it very wise thing to do. Since the fundamental problem of sacristy is always arising, individuals should ensure that they use their resources to cover their needs at an opportunity cost of their wants and luxuries. As mentioned earlier, when budgeting one should outline his/her area(s) of income and highlight his/her expenses. However, it is wise to take out a portion for savings so that you can always have money to assist you in emergencies. Effective budgeting is evident to have helped individuals to rise above ?financial paralysis? over the years as well as helped individuals to manage their income?s liquidity. A budget has no specific group of individuals for which it is successful, once done correctly it will be of good use. This is similar to the statement that implies ?if it has worked for others, it will work for you?. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. A2 Business CourseWork

    For instance Tesco could not give this data to any other company such as a rival or even a division of their business, such as their mobile division. * Individuals have a right of access to the information held about them.

  2. Profit and Loss Account

    The business premises I am buying is Mazza which located on Lady Margaret near Greenford High School. The �22,000 a year I think is a reasonable price because it because it means I have to pay �1,166 a month and based on my cash flow, it shows that this expense won't seriously decreases my profit.

  1. finance for soletrader and partnership

    This is also commonly used by businesses to improve cash flow with fast payments. Credit limits are also required for most businesses. When a business gets trade credit from another business and then pays back in some time such as three months but if the business that has to pay

  2. Business Income and Expenditure

    They could ask for a low interest rate or even could ask them for an extended time to pay back, however if they don't pay back the instalments this could led bailiffs to come around may have to take valuable supplies from the business if still they cannot pay back

  1. Dear Ms C Walsh, Im writing to inform you about ...

    Another advantage could be that factors may give you useful information about the credit standing of your customers and they can help you to negotiate better terms with your suppliers. http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791093&type=RESOURCES * Overdraft facilities Overdraft facility is when you are allowed to be overdrawn up to a certain amount without being charged or having to pay direct debits etc.

  2. Profitability and Liquidity

    available as cash and other assets that could be converted into cash within a year. Current assets will be use up in production and include stock and cash. The stock; for my business the main stock is T-shirts; this will include a range of colours and sizes, and creative-flex (this is the printing ink)

  1. Income increased To Budget

    output necessary to break even * Support applications for loans from banks and other financial institutions - the use of the technique may indicate good business sense as well as providing profit forecasts. CALCULATING BREAK-EVEN POINT USING CONTRIBUTION Calculating the break-even point for a product requires: * the selling price

  2. The company I'm reporting on is Kraft Foods Incorporated - accounting principles.

    For example, let's say that a bakery produces 200 loafs of bread on Monday at $1 each, and 200 more on Tuesday at $1.25 each. FIFO states that if the bakery sold 200 loafs on Wednesday, the cost of goods sold is $1 per loaf because that was the cost of each the first loafs into inventory.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work