Question

Throughout your life, you will need to adapt your budget to respond to changes in your income and expenses. Now, it is time to practice making changes to a budget.

4. Change your previous budget to reflect these new factors. (10 points)
• Your school announced that you will not have to pay for a bus pass to get to classes, because a new school program will cover this expense for all students.
• You just found out that your books will cost more than you had expected. You will now need to spend an additional $100 on books in October.
• You got an unexpected raise at work; you will now be making $650 each month.
• Make sure that you are still meeting your overall goal of saving $100 by the end of October.

Answer 1

To change the budget, remove the bus pass expense, add $100 for books, update monthly income, and review expenses to meet the savings goal.

Step-by-step explanation:

To change the previous budget to reflect the new factors, we need to make adjustments to the income and expenses.

1. The school program now covers the expense of the bus pass, so we can remove that cost from the budget.
2. We need to add $100 for books in October as an additional expense.
3. We need to update the monthly income to $650 due to an unexpected raise at work.

After making these adjustments, we need to ensure that we are still meeting the overall goal of saving $100 by the end of October. We can review the remaining expenses and see if there are any areas we can cut back on to maintain the goal.