Create a financial plan with a weekly allowance of 500. Solution b. a. Understand Needs vs. Wants Identify needs: School supplies, transportation fare, lunch, laptop for online class Identify wants: Milk tea, new clothes, wireless ear buds Identify Income Sources Math Notes The 50-30-20 rule is not used in Example 2.2.12 since 50% of 500 will not be enough for a student's needs. In general. For Madents in the Philippines or even in the working sector, the 50-30-20 rule will be difficult to apply. Weekly allowance: 500 c. Set Financial Goals ⚫ Short-term goal: Save 100 every week in 5 weeks for wireless ear buds. Long-term goal: Save 600 every month in 24 months for a new laptop. d. Create a Budget • Savings: 4% of +500 = 20 • Spending: 95% of P500 = 475 ⚫ Giving: 1% of P500 = 5 e. Track Expenses Use a simple notebook to record expenses. A sample is given below.
Answer (1)
Weekly Allowance:* ₱500Needs vs. Wants:Needs:1. School supplies2. Transportation fare3. Lunch4. Laptop for online class (long-term goal)Wants:1. Milk tea2. New clothes3. Wireless earbuds (short-term goal)Income Sources: Weekly allowance of ₱500Financial Goals:Short-term goal (5 weeks):1. Save ₱100/week for wireless earbuds (total: ₱500)Long-term goal (24 months):1. Save ₱600/month for a new laptop (total: ₱14,400)Budget Allocation:1. Savings: 4% of ₱500 = ₱202. Spending: 95% of ₱500 = ₱4753. Giving: 1% of ₱500 = ₱5Budget Breakdown:1. Essential Expenses (₱475): - Transportation fare - Lunch - School supplies2. Savings (₱20): - Short-term goal: wireless earbuds - Long-term goal: laptop3. Giving (₱5): - Charity or helping othersTracking Expenses:Use a simple notebook to record expenses, like this:| Date | Expense | Category | Amount || --- | --- | --- | --- || | | | |Example:| Date | Expense | Category | Amount || --- | --- | --- | --- || Oct 1 | Transportation | Essential | ₱50 || Oct 2 | Lunch | Essential | ₱100 || Oct 3 | School supplies | Essential | ₱75 || ... | ... | ... | ... |Tips:1. Review and adjust the budget regularly.2. Prioritize needs over wants.3. Consider automating savings through a separate account.4. Avoid impulse purchases.5. Seek support from family or friends for financial guidance.
