QUESTION 1)

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Instructions

EXERCISE: BUDGETING FOR NEAR POVERTY

Assume that you are living in a 3-person family (one adult woman and 2 children (a girl and boy), who are 10 and 2, respectively) whose income is right at the poverty threshold (see the attached table for the dollar amount). To be considered poor, you would have to fall below the poverty threshold.

Make a MONTHLY budget for your assigned family that includes expenses for everything you think the family might need over the course of the year. You have only the money allocated for your family size/type on the poverty threshold table (see below). The dollar amount listed on the table is your annual income. Make sure that you read the table correctly. There is NO other money available to you.

Please explain any assumptions you make for your family. You must find a place to live and provide the name and address of the place (apartment building/community), a contact phone number, and a description of the amenities received for the rent paid. Your budget will be evaluated based on how complete/thorough and realistic it is. So, remember to include every expense that your family might have. Even if you cannot afford to spend money on something, mention this, especially if it is an essential expense.

the budget amount from the table is $20,851.7512730061.