This study source was downloaded by 100000834429415 from CourseHero com on 03 16 2022 15 57 44 GMT 05 00 https www coursehero com file 85664466 performance task financial literacydocx Performance Task Financial LiteracyComplete each task reading directions carefully as you go Be sure to show all work where indicated Step 1 Analyzing components of a BudgetBefore a detailed family budget can be created your financial planner has advised you to examine the important aspects that affect a budget such as income taxes saving and expenses Work through the following questions to start thinking about these aspects of budgeting a As a student you are able to earn extra money by assisting your neighbors with odd jobs If you charged 10 25 an hour for your assistance about how many hours would you need to work to earn 8 425 Show your work It would take about 822 hours to get this answer I took the 10 25 per hour of work and I divided the total goal by the hourly rate because I had to find out how much X hours it would take to reach 8 425 to find the number of hours you need to work you would do 1 10 25 1 hour X hours 2 X 10 25 8 4253 X 8 425 10 25 4 X 821 951 hours 822 hoursb Imagine that you earned 8 425 in one year If the government enforces a 15 income tax how much money would you owe in taxes at the end of the year Show your work 1 Total earning in one year 8 425 Income tax per year 15 2 15 of the total earnings 3 15 of 8425 4 15 8425 100 1263755 126375 100 1 263 756 You would owe 1 263 75 c Your parents have been advised to save 5 of their income for your college education which would include money for housing tuition books and fees How much would your parents have saved in one year following therecommended 5 if they had an average household income of 48 948 Show your work 5 of their income 5 0 05 Their annual income is 48948To get how much they have saved I need to do 0 05 48 948 which equals to 2447 40My parents will save 2446 40 in one year This study source was downloaded by 100000834429415 from CourseHero com on 03 16 2022 15 57 44 GMT 05 00 https www coursehero com file 85664466 performance task financial literacydocx d As a smart consumer you are always on the lookout for sales coupons and rebates While shopping for new clothes you notice that one particular brand of shirts is on sale for 20 off the original price You also have a coupon for 10 off a 40 purchase Coupons are applied after the 20 discount is taken If each shirt originally costs 17 99 how many shirts would you need to buy to be able to use your coupon Show your work 1 17 99 0 2 3 60 amount taken off for each shirt 2 17 99 3 60 14 39 per shirt 3 40 14 39 2 779 round to 3 4 You d have to buy 3 shirts in order to use your coupon 5 14 39 3 43 17 in order to get 10 off you d need to spend at least 40e What would be the total cost of purchasing the number of shirts needed to use your coupon after your couponis applied and a 7 5 sales tax is charged on the purchase Show your work 1 17 99 shirt x 20 discount 3 602 17 99 reg price tshirt 3 60 discount 14 39 per shirt3 14 39 per shirt x 3 shirts 43 17 before taxes4 43 17 sale price for 3 shirts 10 coupon 33 17 base price5 33 17 x 7 5 sales tax 2 496 So you would have to pay 35 66 This study source was downloaded by 100000834429415 from CourseHero com on 03 16 2022 15 57 44 GMT 05 00 https www coursehero com file 85664466 performance task financial literacydocx Step 2 Calculating Monthly ExpensesThe second step to building a family budget is to outline your expenses in greater detail itemizing fixed and variable expenses a Suppose the table below shows your family s monthly expenses by category Fixed expenses are expenses that do not change from month to month and variable expenses are expenses that can fluctuate from month to month Complete all of the columns in the chart labeling expenses as fixed or variable and calculating the average monthly cost yearly cost and percent of yearly budget rounded to the nearest tenth of a percent ExpenseFixed or variableexpense Averagemonthly costYearly costPercent of yearlybudget rounded Income taxFixed 400 4 800 4 800 48 900 9 9 HousingFixed 950 11 400 11 400 48 900 23 3FoodVariable 650 7 800 7 800 48 900 16 ClothingVariable 75 900 900 48 900 1 8 TransportationFixed 500 6 000 6 000 48 900 12 3 Insurance MedicalVariable 1 200 14 000 14 000 48 900 29 5 EntertainmentVariable 100 1 200 1 200 48 900 2 5 Emergency fundFixed 50 600 600 48 900 1 2 Savings for collegeFixed 50 600 600 48 900 1 2 Savings for retirementFixed 100 1 200 1 200 48 900 2 5 Total 4 075 48 900100 b Choose an example of a fixed expense and an example of a variable expense and explain why they are classified that way 1 Entertainment is a variable cost because each month you don t spend the same amount on entertainment For example you don t go to the movies 3 times each month One month you might go twice the next three times and the following month zero times 2 Income tax is a fixed cost because it does not change from month to month it will be the same amount each month This study source was downloaded by 100000834429415 from CourseHero com on 03 16 2022 15 57 44 GMT 05 00 https www coursehero com file 85664466 performance task financial literacydocx Step 3 Creating a Balanced Family Budgeta Using the online family budget estimator at http www epi org resources budget calculate the monthly expenses for a family living in Mitchell You can choose a one or two parent home and select 0 1 or 2 children List the expenses below and state the number of parents and children in your home Monthly expense costs in Mitchell County NC for2 adults and 2 childrenMoney Costs for living in Mitchell County NC for2 adults and 2 childrenHousing 683Food 767Child Care 863Transportation 1 176Health Care 1 543Other Necessities 585Taxes 898Monthly Total 6 514Annual Total 78 168b Calculate the minimum hourly wage needed to cover monthly expenses for your family First of all write down ifthe parents in the household work part time or full time Then assume that a full time employee works four 40 hour weeks per month and a part time employee works four 20 hour weeks per month when determining the hourly wage needed for each a One parent …