Mandeep is a student attending Canadore College, Toronto ON to become a Project Accountant. He worked hard
Question:
Mandeep is a student attending Canadore College, Toronto ON to become a Project Accountant. He worked hard in his last year of high school and was able to save $5,600 to help pay for various necessities over the school year. Mandeep’ tuition costs $6000 for the year. He received an OSAP loan of $6000 to attend college, and only needs to worry about paying the interest each month ($180). His parents give him an allowance of $150 per week while he is attending school to help pay for things like groceries.
Mandeep rented a room in student housing in Mississauga, which costs $500/month but includes utilities. Mandeep must pay for internet and his phone separately. His school supplies cost him $500 this year. Mandeep is able to work at Customer Service-Part Time-Bell Canada while he is in school. He works for 5 hours, 3 times a week. He gets paid $17/hour.
Mandeep's ’ family lives in Milton. Because he is able to take the GRT to school, work and to visit home, he decided to not buy a car this year. He is able to get a Canadore College Bus pass which is valid for a whole semester (4 months). This costs $228.
Mandeep has dinner with his family every Sunday, and he gets sent home with enough food for half the week. He only spends about $70 per week on groceries, however he goes out for dinner every Friday night with friends and spends about $40 each time. He also loves movies, and goes out 4 times a month to the theater. He does not shop a lot and only spends about $60 each month on clothing. As part of his tuition costs, Mandeep is able to use the campus facilities for recreation. He uses the gym, pool and tennis courts. He recently broke his tennis racket and had to buy a new one ($65). He tries to put away $15 each week into a specific “sports equipment” savings account for things like this. He also wants to save $25 each week for other savings.
1. Highlight important information you can use to create a budget.
2. You can create a Budget Template to fill in appropriate dollar amounts.
3. Estimate other income and expenses that could be assumed from this case study.
4. List the i. e -expenses that you can assume.
Income Profile: Adjusted Budget Employment Income Interest/Dividends
Other TOTAL Income Non-Discretionary Expenses Profile: Adjusted Budget
Mortgage/Rent Utilities Telephone Groceries Child care Pet care Clothing
Transportation Gas/fuel Insurance Health club dues Life insurance Medicine
Veterinarian Savings Discretionary Expenses Entertainment Dining Out
Vacation Subscriptions Other TOTAL Expenses Surplus/Shortage
a) What key budget areas did you need to add to the budget template and why?
b) How did you adjust your budget based on your “unexpected event”?
Budget Adjustment
Mandeep is struggling to keep up with the workload from all his classes. He decides to go down to one 5-hour shift each week at his temporary Customer Service Job.
i) Redo Mandeep’ monthly budget based on his new working income.
ii) How has the drop in working hours affected Mandeep’ monthly budget?
iii) Is Mandeep’ decision to work fewer hours sustainable? (Can he keep working for only 5 hours and have his budget balance)
iv) Explain any changes that had to be made?
Expert Answer:
1 Highlight important information you can use to create a budget Mandeeps income OSAP loan of 6000 Allowance of 150week Parttime job of 17hour 5 hoursweek Mandeeps expenses Tuition costs 6000year Inte... View the full answer
