Gabrielle’s Budget

Use the following information and complete a budget for Gabrielle. Use the textbook to help
you and follow the format on page 383.

Gabrielle works part-time at a grocery store and part-time at a clothing store. She makes $10.75/hour
at the grocery store and $13.00/hour at the clothing store.

She worked 35 hours in one month at the grocery store and 40 hours in one month at the clothing
store. 376.25 520

Assume her deductions (income tax, CPP and EI) are 25% of her pay.

Her planned expenses include:

 $75 (saving for post secondary education)

 $110 for car payment
 $100 for food
 $90.09 for insurance
 $62 for gas and oil
 $40 for clothes (necessary for work)
 $125.10 for rent
 $40 for entertainment
 $30 for personal and household items

1. Identify which items are a fixed expenses and which items are variable.

Fixed Variable
 $110 for car payment  $100 for food
 $125.10 for rent  $62 for gas and oil
 $90.09 for insurance  $40 for entertainment
 $75 in post-secondary savings  $30 for personal and household items
 $40 for clothes

This is how her monthly expenses actually occurred:

 She made $45 in overtime

 $75 to save for post-secondary education
 Rent was $125.10
 Car payment was $110
 Her car insurance was $90.09
 $190 for food – she had a dinner party this month
 $80 for gas and oil – she needed an oil change this month and she traveled more than usual
 $34 for parking and tolls

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  In addition to the $40 for the pants she needed for work, she purchased a new pair of running
shoes for $80 – she liked them and wanted a pair just like her friend!
 $70 for entertainment
 $60 for personal items and household items
 $36 for a birthday present for her mother
 A speeding ticket $110 for going 60 km in a 40 km zone 

2. Complete a budget for her planned monthly expenses and one for her actual expenses.

Gabrielle’s Planned Budget

Gross Income $896.25

Deductions $224.06
Disposable Income $672.19

Necessities
Savings $75.00
Rent $125.10
Car payment $110.00
Insurance $90.09
Food $100.00
Gas and Oil $62.00
Personal and Household Items $30.00
Clothing $40.00
Total Necessities $632.19

Discretionary Income $40

Gabrielle’s Actual Budget

Gross Income $941.25

Deductions $235.31
Disposable Income $705.94

Necessities
Savings $75.00
Rent $125.10
Car payment $110.00
Insurance $90.09
Food $190.00
Gas and Oil $80.00
Parking and Tolls $110.00
Personal and Household Items $60.00
Speeding Ticket $110.00
Birthday Present $36.00
Clothing $40.00
Total Necessities $950.19

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Discretionary Income $(244.25)
Shoes $80.00
Entertainment $70.00

Total Luxuries $150.00

Leftover Income $ (394.25)

3. What is the difference between the two numbers?

Gabby spent more in her actual budget than as foreseen in her planned budget, leaving her in debt
with less leftover income.

4. In what areas did she overspend? In what areas did she spend less than planned?

Gabby overspent in all of her foreseen expenses, leaving her in debt at the end of the month.

5. How much did she spend for the use of her car this month?

For the use of her car this month, Gabby spent $450.09.

6. How much money did she have at the end of the month to put into savings?

At the end of the month, Gabby only put in $75 into her savings account however she
accumulated $394.25 in debt by the end of the month.

7. What advice would you give Gabrielle to ensure she stays within her budget?

Gabby should limit her luxury expenses, drive safer on the rode and limit unnecessary purchases
such as clothing and presents to stay within her budget.

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