Sara plans to graduate after the next session (in 6 months) and would like to go on an overseas holiday
Sara plans to graduate after the next session (in 6 months) and would like to go on an overseas holiday to celebrate and before she starts full-time employment. Her parents have agreed to give her $1,000 as a graduation present and she currently has $1,250 in her savings account. Sara has a part-time job as a waitress and plans to save as much as possible for her trip. Sara would like to plan her trip and has asked you to help her calculate how much she will have available for her trip. Make a budget for Sara given her income and expense information as follows:
Waitress job income of $350 per week;
rent (Sara's share of an apartment) of $120 per week;
food of $80 per week; utility bills (Sara's share) of $60 per quarter;
mobile phone bill of $30 per month;
clothing expenses of $50 per month;
transport costs of $25 per week;
textbook and stationery expenses of $600 for the next 6 months.
a. How much will Sara have available for her holiday?
b. How can Sara increase the amount she has available for spending money for her holiday? Explain the advantages and disadvantages of your answers.