1. The maximum amount that Kelly should spend in each of the following categories per month, based on the budgeted percentages, is:
Category Percentage Maximum Amount
Transportation 11% $220 ($2,000 x 11%)
Housing 21% $420 ($2,000 x 11%)
Groceries 14% $280 ($2,000 x 11%)
Debt Repayment 14% $280 ($2,000 x 11%)
Phone/Cable/Internet 6% $120 ($2,000 x 11%)
Medical expenses 4% $80 ($2,000 x 11%)
Retirement 2% $40 ($2,000 x 11%)
Dining out 2% $40 ($2,000 x 11%)
Utilities 10% $200 ($2,000 x 11%)
Savings 9% $180 ($2,000 x 11%)
Miscellaneous 7% $140 ($2,000 x 11%)
Total 100%$ $2,000
2. Kelly's monthly earnings are $2,000 ($1,000 x 2).
What is a budget?
A budget is a financial plan that estimates a person's revenue (earnings) and expenditure for a period.
A budget provides spending guidance.
Question Completion:
Kelly is preparing to move out on her own for the first time. Kelly’s parents told her that to make sure she’s spending her money wisely, she needs to create a budget. Kelly’s parents gave her the graph below to help her determine how much she should spend in various categories. Kelly’s after-tax paycheck is $1,000 every two weeks.
Requirement: Help Kelly create her budget. How much does Kelly earn per month?
Learn more about the importance of personal financial plans at https://brainly.com/question/12890843
