Question

Activity 5 Describe ways of reducing expenditure (2.2) Monica has started a new job and has received her first payslip. She is struggling to make ends meet and often has to borrow money from her mum. Monica knows she needs to reduce her expenditure. Monica has made a list of all of her outgoings: • ●. ● pay mum £50 rent per week pay mum £120 per month for food 3 takeaways per week daily bus fares to and from work • £5 per day for lunch in the canteen £30 per month gym membership 4 nights out per month clothing and shoes mobile phone contract Help Monica to save money by describing how she can reduce her expenditure.​

Answer 1

Monica can reduce her expenditure by paying less rent, reducing food expenses, limiting takeaways and canteen lunches, assessing gym membership, reducing nights out, managing clothing and shoes expenses, and reviewing her mobile phone contract.

Step-by-step explanation:

To help Monica reduce her expenditure, she can consider the following strategies:

1. Paying less rent: Monica can explore other options for affordable accommodation or consider sharing the rent with roommates to reduce her weekly rent payment to her mom.
2. Reducing food expenses: Instead of paying her mom £120 per month for food, Monica can try to cook meals at home and buy groceries at a lower cost. This can significantly reduce her monthly food bill.
3. Limiting takeaways and canteen lunches: Monica can reduce the number of takeaways and bring homemade lunch to work instead. This can save her money on daily bus fares and £5 per day spent on lunch at the canteen.
4. Assessing gym membership: Monica can evaluate if she is using the gym frequently enough to justify the £30 per month membership fee. If not, she can consider canceling it or finding less expensive alternatives like outdoor workouts or home exercises.
5. Reducing nights out: Monica can aim to have fewer nights out per month or find free or low-cost alternatives for entertainment.
6. Managing clothing and shoes expenses: Monica can be mindful of her spending on clothing and shoes, opting for budget-friendly options or reducing the frequency of purchases.
7. Reviewing mobile phone contract: Monica can review her mobile phone contract to see if there are any cheaper plans available that suit her needs.

By implementing these strategies, Monica can reduce her expenditure and improve her financial situation.