3. Create a budget that will allow you to save at least $100 by the end of October. (10 points)
Make sure your budget includes these fixed expenses:
• The cost of rent ($250 each month for your shared apartment)
• The cost of your bus pass ($40 each month)
• The cost of books ($150, but only in September, at the beginning of the school year)
Make sure your budget considers these variable expense categories:
• The cost of food
• The cost of clothing
• Discretionary spending (money to spend freely)
4. If changes happen during September or October, which expenses will you be able to change most easily? Give an example of how you could make a change. (5 points)
5. In which month did you save more money? (5 points)
6. Change your previous budget to reflect these new factors. (10 points)
• Your school announced that you will not have to pay for a bus pass to get to classes, because a new school program will cover this expense for all students.
• You just found out that your books will cost more than you had expected. You will now need to spend an additional $100 on books in October.
• You got an unexpected raise at work; you will now be making $650 each month.
• Make sure that you are still meeting your overall goal of saving $100 by the end of October.
7. After your budget changed, which month had greater fixed expenses?
(5 points)
8. Which variable expenses did you change in order to maintain your goal of saving at least $100 by the end of October? (5 points)
