Understanding and Formulating Budget Changes

Last Year’s Actual Budget and This Year’s Planned Budget
Income Last Year’s Actual Spending (Budget 1)
This Year’s Planned Budget (Budget 2)Difference
Amount Percent Amount Percent Amount
Total Wages After Taxes $25,000 100% $25,000 100% $0
Expenditures Last Year’s Actual Spending (Budget 1) This Year’s Planned Budget (Budget 2) Difference
Amount Percent Amount Percent Amount
Housing $8,800 34% $9,700 38% ↑$900
Food $4,200 17% $4,600 18% ↑$400
Health Care $1,500 6% $1,500 6% $0
Transportation $2,100 9% $2,100 9% $0
Utilities $1,500 6% $1,500 6% $0
Education $2,100 9% $2,100 9% $0
Cell Phone $1,500 6% $1,500 6% $0
Personal Spending $1,000 4% $850 3% ↓$150
Entertainment $800 3% $400 2% ↓$400
Savings $1,500 6% $750 3% ↓$750
Total $25,000 100% $25,000 100% $25,000
Looking at your friends’ budget, describe how their income and expenses changed from the previous year—explain which expenditures changed, which expenditures remained the same, and why. (Your response should be 4–5 sentences.)