Current Budget

1. Based on the budget information provided in the Budget Item Table (see next document in this module), use your spreadsheet to create a monthly budget for the next 12 month period.  Assume no change in the income or expenses throughout the 12 months. The spending data that you have is all that is necessary to do the assignment.
2. Create a data table showing the percentage of spending in each major category and illustrate the percentage using an appropriate graphic.
3. Calculate the new savings goal (50% increase).
4. Identify the five expense areas (not a major category) where there may be opportunities to reduce spending.  Use a data table and appropriate graphic to illustrate the data.

New Budget

1. Create a problem solving statement
2. Using the problem solving process, determine where they could reduce their spending to achieve 50% goal.Identify what budget changes need to be made to enable a 50% increase in savings
3. Create a new budget spreadsheet (for the same 12 month period) to reflect the changes in spending.  Income and expense must balance and savings goal achieved.
4. What specifically is changed?  Create data table and appropriate graphic to illustrate/compare the recommended changes in expenses.

Recommendation Summary

Provide a 2-3 paragraphs summarizing the budget actions that need to implement.  This summary should be directed to John and Betty.