Asked by Ganda D Dakurah on Apr 28, 2024
Verified
Bill is a college freshman living off campus in his own apartment.He lives close enough to the campus to ride his bike and takes the bus to get to his job.He has transferred his gym membership to the facility near his school.He has a credit card; however, he does not use it.He has created a budget as follows:
Monthly Expenses:
Tuition is paid by loan directly.
Books $100
Rent $550
Utilities/cell $250
Transportation $30
Laundry $30
Food/household items $500
Entertainment $200
Health/Fitness $40
Total: $1,700
Monthly Income:
Summer Savings $350
Loan $800
Job (after taxes) $600
Total: $1,700
Based on what you have read about managing financial resources, what are some strengths and weaknesses you see in Bill's financial management? What should be Bill's financial goal? What recommendations would you make for him to reach this goal? Use specifics from the chapter to support your recommendations.
Gym Membership
A paid subscription to a facility providing access to exercise equipment, classes, and other fitness-related services.
Monthly Expenses
Recurring costs or bills that need to be paid every month, often including housing, utilities, food, and transportation.
Financial Management
The practice of planning, organizing, controlling, and monitoring financial resources with a view to achieve organizational goals and objectives.
- Employ methods for economic and educational advancement, including financial planning and the exploitation of available resources.
Verified Answer
SP
Swetal PatelMay 04, 2024
Final Answer :
Some strengths in Bill's financial management include creating a budget, having a source of income, and being conscious of his expenses. He also seems to be responsible with his credit card usage by not relying on it for his monthly expenses. However, there are also some weaknesses in his financial management. For example, his entertainment and food/household items expenses seem high compared to his income, and he does not have a savings plan in place.
Bill's financial goal should be to build an emergency fund and start saving for his future. To reach this goal, I would recommend that Bill reevaluate his budget and look for areas where he can cut back on expenses. For example, he could consider finding cheaper entertainment options or reducing his food/household items budget. Additionally, he should prioritize building an emergency fund by setting aside a portion of his income each month.
Furthermore, Bill should consider looking for additional sources of income, such as a part-time job or freelance work, to increase his monthly income. This will help him to have more financial stability and reach his savings goals faster. Additionally, he should consider investing in a retirement account, such as a 401(k) or IRA, to start saving for his future. By making these adjustments, Bill can improve his financial management and work towards achieving his financial goals.
Bill's financial goal should be to build an emergency fund and start saving for his future. To reach this goal, I would recommend that Bill reevaluate his budget and look for areas where he can cut back on expenses. For example, he could consider finding cheaper entertainment options or reducing his food/household items budget. Additionally, he should prioritize building an emergency fund by setting aside a portion of his income each month.
Furthermore, Bill should consider looking for additional sources of income, such as a part-time job or freelance work, to increase his monthly income. This will help him to have more financial stability and reach his savings goals faster. Additionally, he should consider investing in a retirement account, such as a 401(k) or IRA, to start saving for his future. By making these adjustments, Bill can improve his financial management and work towards achieving his financial goals.
Learning Objectives
- Employ methods for economic and educational advancement, including financial planning and the exploitation of available resources.