Living on Minimum Wage

Create a budget for a family of four who needs to live on minimum wage, both parents work minimum wage jobs.  

Both people make $510.00(total between both people do not multiply) per week after taxes.

Their expenses are as follows-2 bedroom house $550 per month.  They have one car payment of $160.00 and the other person walks to work or shares the car.  The car insurance is $65.00.  They don’t have student loan payments because they both didn’t go to post secondary education.  They decided they were going with the Charter Package that includes Internet & Cable for $80.00 per month.  They both have cell phones their bill is $140 per month. They are on the budget plan for utilities they pay $45 for the gas bill and $60 for electric and water. Gas is currently $2.65 per gallon and they need to fill up once a week, their car takes 15 gallons to fill it up.

Food Cost
The USDA uses national food intake data and grocery price information to calculate different costs for a healthy diet at home. The latest numbers for a four-member family: a thrifty food plan, $146 a week; a low-cost food plan, $191 a week; a moderate-cost plan, $239; a liberal plan, $289 a week.

Entertainment
The family does one outing a week.  You get to pick the outing that they do each week.  You calculate the cost for the family of 4.  They can only go out to eat one time in the month.

Clothing

You can modify this amount but must justify your answer.

Personal Expenses:
What are essential items someone needs to live and survive?  Personal items include: toilet paper, soaps, deodorant, and other items people need.  

Savings-Don’t forget to pay yourself first.  Save 10% of your pay.  

Bad habits-One of the parents smoke one pack of cigarettes per day.  They buy an inexpensive brand which costs about $6.25 per pack.  

School Expenses

Both of their children have field trips this month and they want their children to be able to participate in school events.  The trip for one is $30.00 and the other is $10.00.  They also have 2 snack days to provide for the children.

Make sure your budget is balanced, you may have to cut some expenses.

(Insert Budget Sheet Here)

Answer the following questions:

What meal plan did you go with?  Explain why?

What are your four entertainment plans for the family to do.

How much are you budgeting for clothing?  If you modified it from the amount stated explain how they can save money on clothing?

What are the personal items the family needs?  The family consists of a mom and dad both in their late 20’s, an eight year old girl who is in elementary school and a 5 year old boy who is in kindergarten.

Total Cost

What snacks are you providing for the children to take to school?  What is the cost of each?

If you cut some expenses, what expenses did you cut and why?