Section 1

Discover

 

Josephine is an auto mechanic in Yellowknife. She is saving for a holiday in Europe and wishes to create a budget. As part of the budgeting process, Josephine is reviewing her bank records for the past six months to analyze expenses. She has entered her income and expenses on a spreadsheet. The following are Josephine's records for November. Note that, for example, her paycheque was received on November 1.

 

Josephine’s November Income and Expenses
Date	Description	Expense	Income
1	Paycheque		$4325.00
1	Rent	$1200.00
1	Prescription	$31.16
2	Groceries	$47.19
2	Cash withdrawal	$200.00
3	Computer repair	$73.36
4	Car insurance	$150.00
6	Oil change on car	$52.00
7	Pizza	$24.00
7	Fuel	$59.50
7	Life insurance premium	$26.95
8	Restaurant	$25.50
9	Cross-country skis	$150.00
10	Movies	$20.00
11	Snow tires	$600.00
12	Groceries	$45.67
14	Gift for friend	$40.00
15	Cable TV fees	$50.00
15	Cosmetics	$35.75
16	Phone rental	$62.00
17	Milk and bread	$12.50
18	Cash withdrawal	$200.00
19	Takeout food	$24.95
20	Fuel	$53.00
21	New jeans and sweater	$142.00
22	Groceries	$75.35
23	Airfare to Edmonton	$250.00
24	Restaurant	$55.00
25	Motel in Edmonton	$105.50
26	Taxi	$50.00
26	New winter coat	$235.00
27	Books	$73.49
29	Fuel	$50.00
30	Takeout food	$40.00

 

Try This 1

1. Review Josephine’s expenses for November. Group similar expenses into the same category. For example, two listings you might use are rent and clothing.
   
   
2. Total all of Josephine’s November expenses. Is this total more than her income, or are her expenses less than her income?

Share 1

 

Discuss your answers to Try This 1 with a classmate or with a group of people.

• Did you have any similar categories? What different categories did you notice?
  
  
• With your partner or group, decide if Josephine’s budget is conservative.

If required, save a copy of your discussion in your course folder.