1.1 Living Paycheck to Paycheck

How much money is left over for the remainder of the month?

• $0

• $300

• $400

• $500

Your car has broken down and you have to spend $200 on repairs. How much money do you now have left for the remainder of the month?

• $200

• $0

• $100

• $300

This unexpected expense affects your budget and financial stability by:

• Reducing available funds and potentially causing financial strain.

• Increasing your income and savings automatically.

• Having no impact on your financial situation.

• Guaranteeing you will have extra money left over.

Refer to the table of monthly expenses and income for an Entry-Level Office Assistant. How much money is left over for the remainder of the month?

• $250 (Total income $2500 - Total expenses $2250)

• $150 (Total income $2500 - Total expenses $2350)

• $350 (Total income $2500 - Total expenses $2150)

• $50 (Total income $2500 - Total expenses $2450)

Refer to the table of monthly expenses and income for an Entry-Level Office Assistant. You have an unexpected medical expense of $300. How much money do you now have left for the remainder of the month?

• -$50 (Previous remainder $250 - $300 unexpected expense)

• $100 (Previous remainder $250 - $150 unexpected expense)

• $200 (Previous remainder $250 - $50 unexpected expense)

• $0 (Previous remainder $250 - $250 unexpected expense)

Since you are now in a deficit (expenses exceed your income), what other expenses can you reduce or eliminate to ensure you have enough money to pay your $300 unexpected medical expense?

• Reduce or eliminate non-essential expenses such as dining out or entertainment.

• Increase your income by working extra hours.

• Ignore the medical expense and pay it later.

• Take out a loan to cover the expense.

Managing your finances with a limited income as an Entry-Level Office Assistant can feel:

• Challenging and requires careful budgeting

• Effortless and stress-free

• Unnecessary to track expenses

• Always results in surplus savings

Living paycheck to paycheck presents challenges that can influence future financial decisions. What is one likely impact of this experience?

• It encourages better budgeting and saving habits.

• It leads to spending more on luxury items.

• It makes people less aware of their finances.

• It guarantees financial independence.

Having strong financial literacy can help you avoid living paycheck-to-paycheck by:

• enabling you to budget and manage your money effectively

• encouraging you to spend more than you earn

• making it easier to ignore your financial situation

• leading you to avoid saving for emergencies