# Saving up for purchases | Economics homework help

## 5.4 Saving Up for Purchases

### Personal Finance Portfolio: Part 4

Note: This is one part of a Personal Finance Portfolio in the course that we will be working on throughout the semester. The completed portfolio will count 10% of your final grade.

#### Activity Goal

This Personal Finance Activity will help you see how long it might take on minimum wage to save up for a large purchase. Understanding how to save and live on a budget will help you plan for large purchases in your future.

#### Directions

Read the following paragraph about the hypothetical budget you could be living on if you were making minimum wage. Calculate the totals for your monthly budget (what would you fill in the third column below) and then answer the five questions that follow.

You are living on your own, sharing rent with a roommate, trying to save up for college, and working for minimum wage (\$7.25) at a fast food restaurant. You work 40 hours per week and take a bus to and from work five days a week. Along with saving for tuition, you are also trying to save enough to have 4 months’ rent in your account, a new car so you don’t have to take the bus and a vacation to Cancún with some of your friends. The amounts for Rent and Utilities in the first two rows are your half of the total for rent and utilities; your roommate pays the other half of both expenses.

Monthly BudgetItemCostMonthly TotalRent\$260Utilities (cable, Internet, water, and electricityCable & Internet: \$30, water: \$20, electricity: \$40Groceries\$50 per weekEntertainment\$20 per weekPublic transportation\$1.50 per bus rideClothing\$50Cell phone\$45

#### Questions

1. Approximately how much is your gross salary per month? Because you would be in the lowest tax bracket, you would be taxed at approximately 15 percent. How much would you actually take home every two-week pay period? How much would you take home each month?
2. How much are your total monthly expenses? What other costs may you incur that are not included in your monthly budget? How much disposable income do you have each month?
3. How long would it take you to save 4 months’ rent?

1. You found an old, used car that you want to buy so you can stop taking the bus. It costs \$2,000. How long would it take you to save up for the car?
2. Flights to Cancún are \$380 round trip. The hotel where your friends are staying will cost \$75 a night and you will be staying 3 nights. What would the total cost of your trip be? Be realistic in including additional expenses (e.g. food and entertainment.) How long would it take to save up for the vacation?
3. Given the above scenarios, which major expense would you save for first? Explain your answer, providing at least three reasons.

#### Rubric

Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Essay USA, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

## Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

Essay USA has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

## Essay Writing Services

At Essay USA, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.