Question

Create a budget for the Thomas family of four with a total income of $15,000. Be sure to include the basic needs, recreation, and an element of savings.

a) Housing: $6,000, Food: $3,000, Utilities: $1,500, Recreation: $1,000, Savings: $1,500
b) Housing: $5,000, Food: $3,500, Utilities: $1,200, Recreation: $1,200, Savings: $1,100
c) Housing: $4,000, Food: $4,000, Utilities: $1,000, Recreation: $1,500, Savings: $1,500
d) Housing: $6,500, Food: $3,000, Utilities: $1,800, Recreation: $1,200, Savings: $1,500

Answer 1

Among the given budget options for a family of four with a $15,000 income, the balanced option (b) is recommended, with $5,000 for housing, $3,500 for food, $1,200 for utilities, $1,200 for recreation, and $1,100 for savings.

Step-by-step explanation:

To create a budget for the Thomas family of four with a total income of $15,000, we need to allocate funds to cover their basic needs like housing, food, utilities, as well as include categories for recreation and savings. Among the options provided, I would recommend option (b) as it offers a reasonable balance between the various budget categories:

• Housing: $5,000
• Food: $3,500
• Utilities: $1,200
• Recreation: $1,200
• Savings: $1,100

This budget offers a slightly lower housing cost, which allows for a bit more to be spent on food and recreation, improving the family's quality of life, while still ensuring that they are able to put some money towards savings.