Based on the following information, prepare a monthly and yearly budget for Brandy and Kenneth Harbour. Use Figure 8.2 as a model.

Average Income

Net paychecks $=\$ 1,800$ monthly

Interest on savings $=\$ 50$ monthly

Average Monthly Expenses

$$\begin{array}{lr}\text { Rent payment } & \$ 400 \\ \text { Utilities } & 120 \\ \text { Gasoline } & 100 \\ \text { Insurance } & 150 \\ \text { Groceries } & 200 \\ \text { Clothing } & 100 \\ \text { Car payment } & 210 \\ \text { Car maintenance } & 50 \\ \text { Cell phone } & 40 \\ \text { Entertainment and recreation } & 200\end{array}$$

Cash Surplus

Savings To be determined

$$\begin{array}{lr}\text { Investment fund } & 60 \\ \text { Miscellaneous } & 120\end{array}$$

Explain a paper filing system and an electronic filing system. Why do you need backup copies in both systems?

Use a spreadsheet program to create a budget template that could be used for a monthly and yearly budget. Use the categories shown in Figure 8.2. Insert formulas for calculating totals.

Discuss the role of law in society, such as contract law governing the relationships between people. Explain why laws and rules are important, both in the establishment of and in the enforcement of agreements. What remedies are available to people when the other person in a contract breaches that contract?

Prepare a simple budget for yourself . If your budget does not balance , make adjustments until it does . How much will you set aside for savings? Assume you could set aside this same amount each month. Locate a savings planner tool and calculate your savings after $12$ months at $3$ percent interest, starting with $\$ 0$ in savings .

Describe a paper filing system and an electronic filing system.

Why would you prepare a net worth statement?

How are fixed expenses different from variable expenses?

Write a one-page report on the types of records you are currently keeping. How are they different from records kept by your parents? What kind of record keeping system are you using? Will you need to revise that in the future?

Match the terms with the definitions.

a. assets

b. budget

c. disposable income

d. financial plan

e. fixed expenses

f. liabilities

g. net worth

h. variable expenses

__ Costs that change in amount and type, based on your choices

Match the terms with the definitions.

a. consideration

b. contract

c. co-signer

d. counteroffer

e. database

f. negotiable

g. notarized

h. spreadsheet

i. warranty

__ A process that verifies the signature of a person who signs a document

What choices do you have if your budget doesn't balance? If you had to reduce your spending to balance your budget, which would you try to reduce first: fixed or variable expenses? Why?

What is the purpose of the statute of frauds?

Match the terms with the definitions. Some terms may not be used.

___Items of value that a person owns

a. assets

b. budget

c. cash deficit

d. cash surplus

e. disposable income

f . financial plan

g. fixed expenses

h. liabilities

i. net worth

j. variable expenses

k. wealth