Family Budgeting: The Padme Skywalker Case (Case Study Sample)

Complete each of the worksheets (Worksheets are already done) and attach a full 2-3 page paper analyzing each of the worksheets.
1. Provide an overview of the family’s financial situation and explain what you learned from each worksheet about their financial management. What purpose do they serve and how did it help you assess the financial situation?
2. You will need to identify areas of spending that the family should change and explain why you selected those categories.
3. Compare and contrast their budget for this month and your proposed budget options for the next month.
4. What adjustments did you have to make? After making the changes, how will this benefit the family?
5. What did you learn about budgeting?
WORKSHEETS ( Worksheets are already done and uploaded)
• Income Sources and Monthly Cash Flow
• Recommended Percentages
FORMATTING
Part 1 of the Family Budget Project should:
• Be no more than 3 pages in length
• Include both Excel worksheets
• Be typed as a paper (do not fill this document out like the EL worksheets)
• Be double-spaced
• Have 1” margins on all four sides
• Be 12 point Times New Roman fonts only
• Have no cover page or report cover of any kind
• Have a single-spaced heading in the upper left corner
• Worth 30 Points
I have already done both of the worksheets and uploaded them only thing I need from you is to write the 2 page paper by looking over the family expenses and answer the question throughout the paper that are numbered 1-5 in the 2 pages.
Below is the Family I Choose and her Budget
PADME AND LUKE SKYWALKER
Padme Skywalker just graduated with a degree in business marketing. She has a 2 year-old child, Luke, whose father left shortly after he was born to work as an executive for a shady corporation. She was recently hired as a water harvester, making a net income (after taxes and benefits are paid) of $30,000 a year, which is $2500 a month. She receives an additional $300 per month from Luke’s father in child support payments.
Padme has $30,000 of student loan debt that she must begin repaying now that she is not in school. After working out the terms of her loan, at 5% APR her payments are $318 per month for the next 10 years. She wants to pay the loan off sooner, but that is difficult to accomplish at this time. Her credit is not in great shape since she has accumulated a large amount of credit card debt. She currently owes $8,000 on her credit card, and pays the minimum of $150 a month with an APR of 18%.
Padme currently lives in the same one bedroom apartment she had when Luke’s father was still living with them. Rent is $650 per month, and she pays an average of $75 per month on electricity, $50 per month on internet (which she needs for work), and $30 per month on water/sewer. She needs a cell phone for work and to call her friends and family, so she spends $100 a month on her plan – one which allows unlimited data, texting, calling, and also a $35 monthly fee that guarantees she will get the newest phone each year when the new models come out.
She has a vehicle that she bought for $14,200 at 6.3% when she graduated high school. The loan was for 60 months so she has 2 years left on the loan. Her remaining balance on the car loan (the amount she still owes) is $6,231. Her car note is $277 a month and insurance costs her $70 a month.
Padme pays money to raise little Luke: $450 per month to take her son to a daycare, an average of $50 per month on new clothes as he grows, and $100 on other child needs (including food, toys, etc.). Gas for her car (driving to work and the daycare) – costs her about $70 a month. She does not have any money in savings. Whatever she has left over after bills she spends on food and clothing usually. She spends about $200 a month on groceries, but finds herself eating out a lot to cope with the stress of being a working, single mother. This ends up costing her about $120. Since she works in an office, she likes to treat herself to a nice outfit or jewelry every so often and spends about $80 a month. She has benefits through her workplace, including health insurance, so these expenses are already taken from her paycheck.
Padme is filled with anxiety everyday about the “what ifs” since her money is tied up in so many bills. She wants to start to get out of debt and to start putting some money into savings.