Directions: Budgeting for a new baby requires careful planning. Read the following description of a
couple who are preparing for their first child. Then answer the questions about their budget.
Pam and Jim Knight are expecting their first baby in a few months. Jim is a branch manager at a local
bank. Pam wants to remain at home full-time after the baby arrives. Jim's take-home pay is $2000 per
month.
Pam attends an exercise class that costs $7 per week. Jim relaxes by playing golf. He pays golf fees
of $5 per week. Jim and Pam spend about $28 per week on other forms of recreation, such as going to
the movies and bowling. Between the two of them, the Knights spend about $85 per month on clothes
and another $15 per month for laundry and dry cleaning. Gasoline and car maintenance come to about
$20 per week. The Knights' food bill, including groceries and some meals eaten out, comes to $100 per
week. Another $15 per week goes toward miscellaneous expenses. The Knights put the money left over
each month into their savings account.
1. Use the information in the description of the Knights' situation to fill in the missing amounts. As-
sume that one month equals four weeks.
Budget Category
Amount per Month
Food
Insurance
Con
Medical care
Clothing and laundry
Credit card payments
Recreation
sved of tabto ni op
House payment
Utilities (average)
Telephone
Auto loan payment
Other automobile expenses
Home maintenance
Miscellaneous
Savings
Total Monthly Expenses
$
100
$
$-
ardi 25 bluon asen
meisje ord wor
$-
$
$.
$
$
80
565
110
60
100
$
$
$
$
$ 100
$
