Suppose you are financially advising a family in which both work minimum wage jobs ($9.50/hour - new
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Question:
- Suppose you are financially advising a family in which both work minimum wage jobs ($9.50/hour - new VA law) full time (40 hours a week, 52 weeks/year). They have three children (5, 7, and 8) who are in school. A neighbor watches them after school each day for 2 hours for $8/hour. Assume that 10% of your earnings go to taxes (SS, Medicare, state/federal taxes).
Assume the following general monthly expenses: rent + utilities ($1,400/month), babysitting (assume 4 weeks) groceries ($800), cable ($100), internet ($80), two cell phones ($100), gas for car ($20/week), bus tickets ($1.50/ride, estimate 10 rides/week), car insurance ($130).
- Compute their expected SNAP benefit. (Note: The max benefit table/deductions are in the classwork. Assume your rent + utilities replace the utility standard, as we did in class.)
- Compute their budget. Include the SNAP benefits from the above calculation.
- If you were financially advising this family, what components would you consider cutting from the expenses? What (2) major expenses have they not accounted for?
- What would you suggest they do? Specifically consider which social programs they are eligible for in addition to what areas of their budget they can adjust, and how.
- Would you recommend that this family cut work hours to increase TANF benefits? Why or why not?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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