7.13D Minimum Household Budgets

Front

What is a minimum household budget?

Back

A minimum household budget is the least amount of money a family needs to cover essential expenses such as housing, food, transportation, and utilities.

Front

How do you calculate the total annual budget from a monthly budget?

Back

To calculate the total annual budget, multiply the monthly budget by 12.

Front

If a family has a monthly budget of $4,405, what is their total budget for one year?

Back

$4,405 x 12 = $52,860.

Front

What percentage of a budget is considered for savings?

Back

Typically, it is recommended to save at least 20% of your monthly budget.

Front

How do you determine how much each person needs to earn in a two-adult household?

Back

Divide the total household budget by the number of adults.

Front

If rent is $1,054 per month, how much would each roommate pay if they split the rent equally?

Back

Each roommate would pay $1,054 ÷ 2 = $527.

Front

What is the formula to find out how much each adult must earn to meet the budget?

Back

Front

If Felicia spends 50% of her budget on her car payment and cell phone, what does this imply about her budget management?

Back

It implies that she allocates a significant portion of her budget to essential expenses.

Front

What is the importance of budgeting for housing expenses?

Back

Budgeting for housing expenses ensures that you can afford a place to live without financial strain.

Front

How can you determine if an apartment is affordable?

Back

An apartment is affordable if the total rent is within the budget allocated for housing expenses.