Purchase Solution

Personal Budget Deficit

Not what you're looking for?

Ask Custom Question

A. What situations might have created the budget deficit for the Constantine family?
B. What amounts would you suggest for the various categories for the family budget?
C. Describe additional actions for the Constantine family related to their budget or other money management activities.

Adjusting the Budget
In a recent month, the Constantine family had a budget deficit, which is something they want to avoid so they do not have future financial difficulties. Jason and Karen Constantine, and their children (ages 10 and 12), plan to discuss the situation after dinner this evening.

While at work, Jason was talking with his friend Ken Lopez. Ken had been a regular saver since he was very young, starting with a small savings account. Those funds were then invested in various stocks and mutual funds. While in college, Ken was able to pay for his education while continuing to save between $50 and $100 a month. He closely monitored his spending. Ken realized that the few dollars here and there for snacks and other minor purchases quickly add up.

Today, Ken works as a customer service manager for the online division of a retailing company. He lives with his wife and their two young children. The family's spending plan allows for all their needs and also includes regularly saving and investing for the children's education and for retirement.

Jason asked Ken. "How come you never seem to have financial stress in your household?"

Ken replied. "Do you know where your money is going each month?"

"Not really," was Jason's response.

"You'd be surprised by how much is spent on little things you might do without." Ken responded.

"I guess so. I just don't want to have to go around with a notebook writing down every amount I spend." Jason said in a troubled voice.

"Well, you have to take some action if you want your financial situation to change." Ken countered. That evening, the Constantine family met to discuss their budget situation:
(see the attachment for the budget)

Attachments
Purchase this Solution
Solution Summary

The response provides you a structured explanation of the personal budget of the Constantine family. It also gives you the relevant references.

Solution Preview

A. The situations that might have created the budget deficit for the Constantine family are an unexpected increase in rent, higher cost of food( away), higher cost of personal gifts, and donations. The current budget deficit is $210. These are the items of expenditure that could have increased and have led to the budget deficit for the Constantine family.

B. I would suggest the ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Motivation

This tests some key elements of major motivation theories.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Basics of corporate finance

These questions will test you on your knowledge of finance.

View More Free Quizzes
Related BrainMass Solutions

  • Calculating a personal budget

    Prepare both a monthly budget and an annual budget for Jennifer that identifies gross salary, net take-home pay, net disposable income, and net surplus or deficit. Jennifer is slightly "upside down" in her personal budget.

  • Challenges for America: The Ever-Increasing Budget Deficit

    512935 Challenges for America: The Ever-Increasing Budget Deficit Budget Deficit, National Debt, and Government Spending: Is Now the Right Time to Cut Deficit and Reduce National Debt?

  • Macroeconomics

    Estimates are that this package will push the federal budget deficit to about $1.8 trillion this fiscal year.

  • Problem sets/policy questions

    As a result, the budget deficit is reduced by $40 billion, private domestic saving decreases by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion.

  • deficit state

    122834 Deficit state A government budget deficit is financed by a combination of (a) saving rising relative to domestic investment and imports rising relative to exports.

  • Government cuts its purchases

    As a result, the budget deficit is reduced by $40 billion, private domestic decreases by $10 billion, disposable personal income decrease by $80 billion and the trade deficit is reduced by $15 billion. By how much has national income (y) changed?

  • Trade deficit vs. Budget deficit

    This is a budget deficit. The two are not related at all. Solution explains the differences between trade deficit and budget deficit.

  • GDP and Net exports

    As a result, the budget deficit is reduced by $40 billion, private domestic saving decreases by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion.

  • Taxes or Spending Cuts?

    /State-budget-deficit-now-at-146-3M-3875182.ph... 4. www.huffingtonpost.com/.../illinois-budget-deficit-w_n_1618469.ht.. 5. www.cnn.com/interactive/2011/02/politics/table.state.budgets/ 6. www.usnews.com â?

View More Related Solutions