Activity 3: Balancing Income and Expenses (Case Studies)

(Objective 3: Practice balancing personal income and expenses.)

Suggested Introduction: Have you ever worried that you won’t have the money when the rent is due? Have you ever gone without food or gas for the car because you had to pay the rent? Have you ever been evicted because you got behind on the rent? In this activity, we will explore how much you can afford to pay for rent and still be able to meet other basic needs. You will get a chance to think about ways to increase your income and/or decrease your expenses, as well as to learn one method of keeping up with your rent payments.
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Provide participants with Case Studies and Handout 3: Monthly Budget Worksheet. Have participants work in pairs to determine monthly income and expenses from one case study. (Note that Case Study 1 requires TWO Monthly Budget Worksheets [for 2 renters] and Case Study 4 requires TWO Monthly Budget Worksheets [for 2 situations].) Some points to share before they begin:

  • Include only income that can be counted on. For example, overtime payments may not be consistent enough to count in the monthly formula.
  • If income varies due to the number of hours worked or because it comes from tips or commissions, use an average of several paychecks or use the amount from the smallest paycheck.
  • Income may be from a variety of sources other than wages and may include non-cash income such as Food Share.

When Handout 3 is completed discuss what the renter in the Case Study can afford. (Check accuracy using the Instructor Materials: Completed budget sheets for each case study.)

Provide Handout 4: When You Need to Reduce Expenses. As a group discuss how the ideas relate to the case study they used. (If there is time, have participants work in pairs/small groups to determine monthly income and expenses from other case studies.)