Baggins Budget Worksheet
PART 1: MONTHLY INCOME
Old Budget
Current Budget
Person #1: Monthly income from full time job
$5,416.67
Person #2: Monthly income from unemployment insurance
$1,400.00 $
TOTALS (Automatically Calculated)
PART 2: MONTHLY EXPENSE
$6,816.67
Old Budget
Mortgage / Taxes / Home Insurance
Credit Card #1 (Balance $3,129.00, Interest rate 18.9%, minimum payment)
$5,416.67
–
$5,416.67
Current Budget
$1,730.00
$1,730.00
$126.16
$126.16
Credit Card #2 (Balance $2,312.00, Interest rate 15.9%, minimum payment)
$92.48
$92.48
Credit Card #3 (Balance $4,235.00, Interest rate 7.75%, minimum payment)
$169.40
$169.40
Car 1 (Payment, 5 year loan) – 2017 Nissan Altima
$197.00
$197.00
Car 2 (Lease, 36 months) – 2019 Honda CR-V
$342.00
$342.00
Car Insurance
$175.00
$175.00
Gasoline
$150.00
$150.00
$1,318.00
$1,318.00
Cable TV / Internet Access / Phone
$219.00
$219.00
Clothes
$150.00
$150.00
Mobile Phones
$180.00
$180.00
Groceries
$600.00
$600.00
Health Insurance
Pet care
$50.00
$50.00
Gym Membership
$140.00
$140.00
Electric Bill
$185.00
$185.00
Entertainment
$400.00
$400.00
TOTALS (Automatically Calculated)
$6,224.04
$6,224.04
PART 3: RESULTS (Automatically Generated from Parts 1 & 2 Above)
TOTAL MONTHLY INCOME
TOTAL MONTHLY EXPENSE
VARIANCE (This is how much over, or under, your budget you are.)
Old Budget
$6,816.67
$6,224.04
Current Budget
$5,416.67
$6,224.04
$592.63
($807.37)
If this number is positive (blue), good work! The B
family is spending less than they’re earning. If it’s
negative number (red), you need to consider mo
to save or reprioritize expenditures.
Recommended changes:
New Budget
$5,416.67
$
–
$5,416.67
New Budget
Comments:
$0.00
New Budget
$5,416.67
$0.00
$5,416.67
e (blue), good work! The Baggins
han they’re earning. If it’s a
you need to consider more ways
xpenditures.
Criteria
Excellent
Good
Average
Criteria
Well considered,
Guidelines thoroughly researched
recommendations
Well considered,
somewhat researched
recommendations
Well considered
recommendations, little
research
Criteria
Points
B
C
A
Needs Improvement
Poor recommendations,
little research
D-F
BUDGET LAB
Learning Outcomes:
Upon completion students will be able to:
Develop a personal budget
Grading Rubric
Criteria
Excellent
Good
Average
Criteria Guidelines
Well considered,
thoroughly
researched
recommendations
A
Well considered,
somewhat
researched
recommendations
B
Well considered
recommendations,
little research
Needs
Improvement
Poor
recommendations,
little research
C
D-F
Criteria Points
Introduction:
Bungo and Esmerelda Baggins and their 13 year old son, Fosco, live in a beautiful house in Cary,
North Carolina. Their house has 4 bedrooms, 4 baths and is 3,475 ft2. In 2017, shortly after the
family purchased their home and a new Nissan Altima, Bungo lost his job. Since then he has been
unable to find employment. Living on Bungo’s unemployment insurance rather than his salary left
the family with less money than they were used to spending, so they used credit cards to pay for
some of their expenditures. In December of 2018, believing that he was about to be offered a
prestigious new job, Bungo leased a 2019 Honda CR-V (36 month lease). That job fell through and
his unemployment benefits have recently run out. The family can no longer meet their monthly
expenses and have come to your group for help.
Directions:
Read the information found at:
https://www.bankofamerica.com/deposits/manage/creating-a-budget.go
and watch the videos found at
http://www.bettermoneyhabits.com (hint: if you have trouble watching some of the videos, read
the transcript).
Look at the Baggins family expenses found on the attached Excel sheet. Research ways in which the
family can cut its monthly expenses and balance its budget. Your recommendations must be
realistic (for example the Baggins family can’t stop eating or wearing clothes) and well researched.
You cannot totally eliminate any expense, only find ways to reduce it. If you recommend saving
money on housing, insurance, car payments, utilities, etc. you must research that budget item and
find a less expensive alternative for them. If you recommend debt consolidation, you must find
them a lower cost loan. Divide the research up among your group then consolidate your
recommendations on your Final Worksheet. Fill out the New Budget column on the
Baggins_Budget_Worksheet with your recommended changes. Be sure that their new budget
covers all of their monthly expenses. Document your recommendations and cite your research in
the text box on the worksheet.
Rename the Excel file as Your_Group_Name_Final and have one group member upload the file via
the assignment link on Blackboard.
Some websites to try:
http://www.bankrate.com/calculators.aspx
http://www.epi.org/resources/budget/

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