More For Your Money - University of Illinois Extension

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Jones Family Spending Plan

Activity

Let’s take a look at the Jones family.

The Jones family has a monthly income of $1,500. 

They tracked their expenses for a month and found that they have $900 in fixed expenses and $800 in flexible expenses.  When you subtract their income - $1,500 – from their expenses $1,700 – the Jones family has more expenses than income!

Remember, you have to balance your expenses to your income.  Since the Jones family overspent their monthly income by $200, what suggestions do you have for the family?  Look at the flexible expenses first and cut back as much as possible. You can do that by clicking on the Cut back button. It will reduce the amount by $10 for each click. If you still need to cut more, look at the fixed expenses. 

Here are their expenses:

Fixed Expenses:
  Housing $400 Cut back
  Utilities $105 Cut back
  Insurance $125 Cut back
  Credit Payments $270 Cut back
  Total $900
Flexible Expenses:
  Food $300 Cut back
  Clothing $100 Cut back
  Transportation $120 Cut back
  Personal Care $30 Cut back
  Medical $100 Cut back
  Recreation/Entertainment $50 Cut back
  Household $70 Cut back
  Gifts, contributions $30 Cut back
  Total $800
Totals:
  Total Expenses $1700
  Total Income $1500
  Overspent $200