I think I am a lot like everybody else. Hard working, mom of two boys—John is 6 and Manuel is 7-- I’m just trying to mak
Posted: Sat May 07, 2022 8:54 pm
I think I am a lot like everybody else. Hard working, mom of two
boys—John is 6 and Manuel is 7-- I’m just trying to make ends meet.
And I dream of my own home. Things changed dramatically for us when
I got divorced two months ago. Overall, I think it was the right
thing to do, but it means my finances are different – different in
a bad way. I am still working my job at the library making $34,000
a year. Each month that means I have $2,375 to spend, after taxes
and deductions. I’m not getting any alimony or government
assistance. When I was married our income was really good. My
ex-husband was a manager of a chain hardware store, so together we
made $72,000. We didn’t really have to think too much about money.
We easily covered the bills and I was able to pretty much buy what
I wanted. We took the boys to Disney every year, kept up with new
clothes and shoes for them, and ate out, too. We had even bought a
home – it was small, but it worked for us. Since the divorce, I
have moved in with my parents. For me it’s not ideal. The boys are
happy to be with their grandparents but we can’t stay here too
long. I am noticing tension and I am getting easily annoyed. I am
just so used to doing things my way and not having someone judging
my choices. Plus, my Mom doesn’t like our dog Rascal. Thanks to my
cousin Adriana I have an apartment lined up and will move out in
three weeks. I don’t consider myself a spendthrift but I am worried
about being able to pay for everything the boys need. Compared to
other people there is no way you would call me extravagant. When I
think about my spending it seems fine and I can’t imagine where I
can cut back or make changes. I hate to admit it, but I think I may
need help if I am going to be able to save toward a new house. This
is the Spending Jessica Reports: Food The boys have breakfast at
home, but Jessica is usually rushing and picks up something for
herself at a small café near work. Usually she spends $6.50 for
food and coffee. At lunchtime she gets a sandwich for around $8.00
and she gives the boys $2.75 each for their school lunches. Dinner
is often frozen meals – fast and easy—except on Friday when they go
out for pizza and ice cream which costs around $35.00 for the three
of them. 2 Clothing Jessica is often buying shoes and clothes for
the boys because they are growing fast. They have particular
tastes—wanting to have the latest designs and styles. She shops
less often for herself, getting new clothes occasionally but when
she does, she goes for quality brands—spending $100-200 for
dresses. She shops when she can, not planning ahead and puts these
purchases on a credit card. Each month she makes the minimum
payment towards this balance, of $125. Housing Jessica wants the
boys to have the least disruption they can, so she is moving to a
threebedroom apartment. They had their own rooms in their small
house, so she wants that to continue. The apartment she has found
is $1,000/ month. She likes it because it is in a suburban
location. Furniture/Household Items Jessica can furnish the
apartment with items she has – but some of these will not fit and
she doesn’t want to get rid of them. These items are sentimental
and still good. Her parents place is small, so she has a storage
unit for these extra items, and she pays $40/month to keep them
there. Transportation Jessica drives to work but does not have to
pay for parking. She drives a 2014 RAV4 that is paid for, but gas,
routine maintenance, repairs, and insurance runs her $225/month.
She needs the car to get to work and do errands. Most of her trips
are between 5 and 7 miles. Entertainment & Recreation Jessica
has a cable package—not the most expensive one available and the
kids and she use it a lot. It costs $200/month. Sometimes she takes
them to do something special. They might go to the Rock Wall or
Trampoline park, or even the Zoo. These are not regular things, so
it only costs her roughly $40/month. For her own sanity she
continues to go to the gym. That has been a lifesaver so Jessica
doesn’t want to give up its $20/month membership. She would still
like to take them to Disney but she thinks that may be beyond her
means. Jessica does not have a checking account, she falls into a
group economists call the “unbanked.” She uses money orders to pay
all her bills – something that requires she stops to buy them and
send them out as bills are due. This costs her roughly $12.00/month
for money orders. 3 Be Critical. What types of costs has Jessica
forgotten? What costs are not here? Remember to change annual
amounts to monthly (Divide by 12) or weekly to monthly (multiply by
4).
Gross Annual Income
Net Annual Income
Net Monthly Income
Monthly Expenses"
Food:
Breakfast
Lunch
Lunch Friday Pizza
Clothing
Credit Card
Housing
Rent
Furniture
Storage
Transportation
Car
Expenses
Recreation
Cable
Fun
Gym
Finances
Money
Orders TOTAL
How would you describe Jessica as a spender? 4 Do you have any
advice for Jessica to help her save? What behaviors and choices can
she change?
boys—John is 6 and Manuel is 7-- I’m just trying to make ends meet.
And I dream of my own home. Things changed dramatically for us when
I got divorced two months ago. Overall, I think it was the right
thing to do, but it means my finances are different – different in
a bad way. I am still working my job at the library making $34,000
a year. Each month that means I have $2,375 to spend, after taxes
and deductions. I’m not getting any alimony or government
assistance. When I was married our income was really good. My
ex-husband was a manager of a chain hardware store, so together we
made $72,000. We didn’t really have to think too much about money.
We easily covered the bills and I was able to pretty much buy what
I wanted. We took the boys to Disney every year, kept up with new
clothes and shoes for them, and ate out, too. We had even bought a
home – it was small, but it worked for us. Since the divorce, I
have moved in with my parents. For me it’s not ideal. The boys are
happy to be with their grandparents but we can’t stay here too
long. I am noticing tension and I am getting easily annoyed. I am
just so used to doing things my way and not having someone judging
my choices. Plus, my Mom doesn’t like our dog Rascal. Thanks to my
cousin Adriana I have an apartment lined up and will move out in
three weeks. I don’t consider myself a spendthrift but I am worried
about being able to pay for everything the boys need. Compared to
other people there is no way you would call me extravagant. When I
think about my spending it seems fine and I can’t imagine where I
can cut back or make changes. I hate to admit it, but I think I may
need help if I am going to be able to save toward a new house. This
is the Spending Jessica Reports: Food The boys have breakfast at
home, but Jessica is usually rushing and picks up something for
herself at a small café near work. Usually she spends $6.50 for
food and coffee. At lunchtime she gets a sandwich for around $8.00
and she gives the boys $2.75 each for their school lunches. Dinner
is often frozen meals – fast and easy—except on Friday when they go
out for pizza and ice cream which costs around $35.00 for the three
of them. 2 Clothing Jessica is often buying shoes and clothes for
the boys because they are growing fast. They have particular
tastes—wanting to have the latest designs and styles. She shops
less often for herself, getting new clothes occasionally but when
she does, she goes for quality brands—spending $100-200 for
dresses. She shops when she can, not planning ahead and puts these
purchases on a credit card. Each month she makes the minimum
payment towards this balance, of $125. Housing Jessica wants the
boys to have the least disruption they can, so she is moving to a
threebedroom apartment. They had their own rooms in their small
house, so she wants that to continue. The apartment she has found
is $1,000/ month. She likes it because it is in a suburban
location. Furniture/Household Items Jessica can furnish the
apartment with items she has – but some of these will not fit and
she doesn’t want to get rid of them. These items are sentimental
and still good. Her parents place is small, so she has a storage
unit for these extra items, and she pays $40/month to keep them
there. Transportation Jessica drives to work but does not have to
pay for parking. She drives a 2014 RAV4 that is paid for, but gas,
routine maintenance, repairs, and insurance runs her $225/month.
She needs the car to get to work and do errands. Most of her trips
are between 5 and 7 miles. Entertainment & Recreation Jessica
has a cable package—not the most expensive one available and the
kids and she use it a lot. It costs $200/month. Sometimes she takes
them to do something special. They might go to the Rock Wall or
Trampoline park, or even the Zoo. These are not regular things, so
it only costs her roughly $40/month. For her own sanity she
continues to go to the gym. That has been a lifesaver so Jessica
doesn’t want to give up its $20/month membership. She would still
like to take them to Disney but she thinks that may be beyond her
means. Jessica does not have a checking account, she falls into a
group economists call the “unbanked.” She uses money orders to pay
all her bills – something that requires she stops to buy them and
send them out as bills are due. This costs her roughly $12.00/month
for money orders. 3 Be Critical. What types of costs has Jessica
forgotten? What costs are not here? Remember to change annual
amounts to monthly (Divide by 12) or weekly to monthly (multiply by
4).
Gross Annual Income
Net Annual Income
Net Monthly Income
Monthly Expenses"
Food:
Breakfast
Lunch
Lunch Friday Pizza
Clothing
Credit Card
Housing
Rent
Furniture
Storage
Transportation
Car
Expenses
Recreation
Cable
Fun
Gym
Finances
Money
Orders TOTAL
How would you describe Jessica as a spender? 4 Do you have any
advice for Jessica to help her save? What behaviors and choices can
she change?