A budget for a family of three

Create a budget for a family of three (one adult and two children under age 10) using only one earner making the minimum wage ($7.25 per hour for 40 hours a week = approximately $1,160 per month). For the purposes of this exercise, we’ll assume that you are not taxed. Be sure to include utilities, diapers, child-care, food, transportation, health insurance, clothing, shelter, and even entertainment costs. Do some research on the cost of items with which you are less familiar. (Have you seen the cost of diapers?! Babies go through between six and eight diapers a day.) Stop at a grocery store to price household items, use the newspaper to research rental rates, and call your public transportation offices to find out what a monthly train or bus pass costs.

Write up your budget using at least the following categories: Housing; utilities; transportation; food; clothing; child care; school supplies; health insurance (for self and children); entertainment; savings

Post your budget and answer the following questions in the discussion forum:

Briefly describe the process of developing the budget.
What were the most challenging budget items?
What areas made you struggle?
Were there items that you had to go without?

Sample Solution