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Section 1: Creating a Two-Month Budget
Imagine that you are a college student who lives away from home. You have a work-study job at your
college library, and you earn about $600 each month. You have one major long-term goal: you want to
save up money to visit your family soon, and you need at least $100 for your train tickets.
1. Create a budget that will allow you to save at least $100 by the end of October. (10 points)
Make sure your budget includes these fixed expenses:
•
The cost of rent of ($250 each month for your shared apartment)
•
The cost of your bus pass ($40 each month)
•
The cost of books ($150, but only in September, at the beginning of the school year)
Make sure your budget considers these variable expense categories:
The cost of food
The cost of clothing
Discretionary spending (money to spend freely)

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