How to Live with 15300$

How to Live with 15300$ Introduction Family income is a particular sum of money the whole family gets annually. The salaries, income from deposits and other stable and regular incomes are really important for the family as depending on this information many families plan their costs.Advertising We will write a custom essay sample on How to Live with 15300$ specifically for you for only $16.05 $11/page Learn More Having the information about the annual income of the family and the list of the obligatory costs, it is possible to calculate the expenses of the family, the cloths they can buy and the number of entertaining places they can visit. Moreover, the food and other unexpected costs should be considered. However, it seems rather difficult for the family to pay attention to unexpected expenses and to plan them if the family income is too low. Additionally, there are a number of notions which should be considered while discussion of the family budget. The Consumer Price Index is t he notion which should not be avoided as it is the measure which points at the obligatory items people are to be able to buy on the salaries and income they have. Family and Living Conditions The situation is the follows. The family consists of a father, a mother, and two kids, a 10 years old girl, and a 4 years old boy. The family lives in the personal house which is not that small as children do not have to share the rooms and have their personal ones. The family income comprises 15300$ annually, which is about $1275 monthly. The task is to consider the budget of the family, and calculate their costs on the basis of the fact that these people are to live in the house, buy food and clothes and provide other expenses obligatory for an average American citizen. Consumer basket The consumer basket is the number of categories which account the items necessary for living. There are about 200 categories which are gathered into eight great groups.Advertising Looking for essay on b usiness economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thus, food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, other goods and services are the items which are to be involved in calculation. Thus, using this pattern as the basis for creating the budget for a family, the following data should be considered. Things necessary for living As it has already been mentioned, the family is to be able to buy the items mentioned in the consumer basket. Here is the detailed description for each of the major categories. Food and beverages are important for the family, however, paying attention to their low income, this category should be presented with breakfast cereal with milk, coffee or tea, chicken (another type of meat may be too costly for the family), wine, and full service meals which are comprised of a great many of different vegetables and other products. Much attention sh ould be paid to the prices in this category. The cereals may cost about $22.08, different breakfast bars and other snacks about $2-3 per item. This may be enough for a week or two. Milk will cost the family about $90 a week (1 pack costs $30, which is for two-three days). The process are presented as the sample how the average annual cost of the life was calculated for the family. The prices for most of the products may vary greatly depending on the season and on the place where the products are to be bought. This category also covers eggs, fruits, fats and oils, alcoholic beverages, meat, etc. The general expenses on this category are to be much greater, however the family cannot allow to pay more than $500 as in this case they will no have an opportunity to pay for other services. The price means that the family is unable to eat meat every day, eggs and fresh mils appears on the table also rarely. Tasty and expensive fruits, candies, and other sweets are not eaten too often.Advert ising We will write a custom essay sample on How to Live with 15300$ specifically for you for only $16.05 $11/page Learn More Housing is another parameter which is to be paid. Thus, this category covers the expenses on the house. Being the personal house, the family is just to pay the rent and other services such as gas, water, light. The owners equivalent rent or bedroom furniture are not considered. However, the family may spend some extra money of repairing or new objects which are too important. The average cost of the items may be about $200 a month. Apparel is the third parameter in the family budget. Having too low income, the family cannot allow to buy cloths too often, the one or two items per person a month. If the cloths are not necessary right now, the family has to save this money of more expensive cloths of shoes. To the point, this category covers men’s, boys’, girl’s and women’s apparel along with footwear. About $100 is the cost for this category. Transportation is an inevitable part of the family. The family is unable to buy a new vehicle, however, they are to spend money on gasoline and motor vehicle insurance which s not cheap. The costs depend on the distances the members of the family have to ride every day. Paying attention to the fact that the family is poor and cannot allow to drive too much, their costs on gasoline are minimal. Medical care is an important aspect. People are to buy prescription drugs and medical supplies if they are ill, physicians services are also to be paid along with the hospital services. Paying attention to the fact that the family cannot allow substantial nutrition with all the necessary vitamins and minerals, they are more subjected to getting sick that increases the costs on medication.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, it is presupposes that people will not be sick each month, the average sum of the medical costs should be about $100 monthly (as all the calculations are based on the average month income considered from the annual one). Recreation services are important however, the family does not have an opportunity to but toys, have pets and pay for television annually. Therefore, the family has to enjoy the free TV and the toys and entertainments they already have. However, the family members can allow to have a rest once a year if the cost of the vocation is not too high. The family can allow to spend about $2000 annually. Education and communication are important as children are to study. However, it increases costs as the family has to spend money of books, copybooks, cloths and other items which are obligatory and cannot be avoided. Moreover, the computer services are also important as having no opportunity to have the computer at home, school children are to pay for those services to be able to hand in the printed papers and submit the works on time. Other goods and services such as the services of the haircuts and other expenses are to be considered annually due to the low income of the family these services are not too often used. The extra costs of the family are also to be covered. The household troubles, funerals, costs devoted to unexpected loss of working opportunities, different presents for birthdays and personal birthdays of the family members are to be considered. It is hard to predict the sum of money on these events as in most cases family with such low income celebrate only too important dates. Arguments Thus, having considered the family income and the costs it has to endure, it should be stated that the family is to pay obligatory $900 annually without considering the medical services, education and extra costs which are obligatory. Conclusion In conclusion, it should be stated that he family is very poor and cannot allow many particular thin gs. Children are to wear the clothes of their older brothers or sisters, they are unable to attend different entertaining facilities, they cannot eat too tasty and delicious meals as they cannot afford them due to high prices and low income. The absence of the appropriate nutrition increases the risk of infection that raises the family expenses and puts them at risk of loosing a feeder of the family for a period of the illness. It is essential for the family to increase the income as the living on 15300$ annually is too hard, children do not get appropriate education, they are limited in many opportunities and as a result they may get worse education than others do. How to live with 15300$ Introduction With the rising hard economy of this twenty first century, everyone has to know how to budget for the little annual income that they earn. This is extremely necessary in order to cater for the needs of families.Advertising We will write a custom essay sample on How to live with 15300$ specifically for you for only $16.05 $11/page Learn More A budget is a financial document used to project future income and expenses. The budgeting process helps individuals involved estimate if they go on with the operation according to the income that they earn or not. This paper is discussing a family budgeting. Requirements of a good budget It is necessary for one to know the actual income before planning the budget. For one to be able to make a successful budget there are a number of features to consider; categories that fit one’s personal situation and spending habits only, and income expectations, which are right. One should reflect how he or she spen ds money so as to cut down costs where necessary and the budget should entail costs that are not on a monthly basis. These are a few of requirements that this family of four can consider. This family where the annual earning is 15300 dollars is living in a low social economic life. This is because it is estimated that poverty lies among citizens who earn 10000 dollars annually. This family is slightly above the poverty line. Therefore, it should not go for the most costly expenses. Housing This family should go for a house that has a minimum of three bedrooms. This is due to reason that the ten year old girl and the four year old boy will not share bedrooms. The house should also be located in an area occupied by middle class people. This is where the family can get an affordable three bedroom house. Also, commodities in the locality are available at fair prices. This family should also look for a house that is not far from their places of work. The house location ought to be near s ocial amenities like hospitals and schools. Due to their earning, this family ought to live in a house worth 3,240 dollars annually to avoid spending more than their income.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Buying clothes Clothes are also basic, thus this family can budget to purchase both second hand clothes and the brand new ones. In accordance to their annual income, they should spend approximately 4,800$ per year. While budgeting for the children’s clothes, these parents should consider the size of the clothes. They ought to purchase clothes that are not very fitting. This ensures that the children wear the clothes for a long period of time. Also, they should buy clothes that are of good quality. This helps them avoid buying clothes frequently due to wearing out. In addition, they can sort out their clothes to get the one that have outgrown their children and theirs that are not in use. Instead of disposing them, they can sell them as second hand clothes. This will earn them some income that can help them meet their family needs. Such income can also be used in case of emergencies like sicknesses. Education The children in this family require education at different levels due to their age differences. The parents should look for schools located near the middle class people. This is because the schools are affordable according to their annual income. The parents should look for a school that charges fees of approximately 1,260 dollars for the four year old boy. For the ten year old girl the fees should amount to around 2370 dollars. This means that the total cost for school fees in this family per year will be 3630 dollars. The children should be taken to one school. This has very many advantages. One, the school fees, is paid at the same time and place. Secondly, these brother and sister go to school at the same time. Hence, they sa ve time for parents to attend to other chores. Also, when purchasing the uniform, parents are able to cut the cost. This is because the four year old boy can wear the pullovers and socks that have outgrown the ten year old girl. In addition to the advantages, the boy uses the text books and revision books that were used by the older girl. This ensures that the parents purchase textbooks only once that is, for the ten year old girl. Parents are able to cut down the cost of the school fees. Since the school is located near the family’s home, parents are able to take lunch to their children instead of including it in the school fees. Moreover, the transport fee is low since the school is not far from their home.Advertising We will write a custom essay sample on How to live with 15300$ specifically for you for only $16.05 $11/page Learn More In education, the father and mother of these children should remember to insure their children’s future edu cation. This includes high school and higher learning institutions. Since this is done annually, the parents dedicate a certain amount of money from their salary. Transportation The family should always look for the cheapest means of transport as they move from one location to another. They can use the railway transport since it is the cheapest across the world. To help cut down transportation cost, the family should always walk to places that are not far. For instance, they should walk to the nearest market centers. They ought to worship at the nearest places. The annual transportation cost for the parents should be approximately 500 dollars. This applies if they work at a distance where they cannot walk. A decent house location also helps in cutting down the cost of transportation. Therefore, during budgeting, this family should consider the house nearness to social amenities. When health facilities, schools, together with others are near, the family will use little money on trans port. Healthcare Health is one of the most fundamental requirements in a family. Healthcare involves a number of activities. For instance, eating a balanced diet, regular check- ups, and living in a clean home environment. To boost healthcare in the family, a family should be located in an area where they can access it easily. This family’s home should be near a hospital. This is because children fall sick often; hence they should be rushed to hospital fast. To keep the environment clean, this family must spend some funds. For example they spend money when buying treated mosquito nets, purchasing detergents, tools for trimming flowerbeds and bushes, and hiring a gardener. The family should also have a thorough weekly general cleaning. This includes cleaning all the bedding, clothes, and the whole house. If the family maintains this high standard of cleanliness, it reduces the chances of them falling sick. This reduces the cost of treatment because they will not visit the hosp ital regularly. This family should budget for health care at an amount of approximately 2,973 dollars annually.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The family should make sure that every member is insured against health care. This helps them receive the best health care no matter the price of medicine prescribed. Apart from other basic needs in this family, there are other requirements that are not expected. Therefore, it is necessary for them to save some money for such emergencies. This helps the family avoid borrowing money now and then when such cases arise. Thus, they can open a bank account to save the remaining amount of their annual income which is 119 dollars. Conclusion This family of four ought to put apart some time to plan on how to budget on their earnings. This helps them spend wisely so that they can meet all their basic needs. This plan will also ensure that there is a balance in the allocation of funds, in all their basic requirements. This will also help the family relieve the burden of thinking on how to spend their earnings every time they are paid. Good budgeting also helps the family live peacefully. This is because there are no issues of drug abuse like alcoholism which result to quarrels in the family. Budgeting is, therefore, a peace contributing factor in families. In addition, proper budgeting helps is reducing the chances of poverty due to poor spending of income earning. Therefore, budgeting is highly essential to all families and especially to a family that earns an annual income of 15300 dollars. This is all that is necessary for proper budgeting.