Budget Exercise

BudgetFinanceSociology

Necessity is something that is necessary or indispensable and include shelter, food as well as other necessities that are essential in life. Therefore, the need of the necessity is actually inevitable and its unavoidable in nature. The necessities are quite important due to the fact it makes the basic life to be comfortable. Necessities include utilities, rent or mortgage, food, clothing among others. The items provided are necessities and the allocation for the following would be rent $ 3000, utilities $2000, food $ 5000, clothing $3000, childcare $1000, car payment $500, gasoline $1000, insurance of car $ 1000, entertainment $ 500, Medicare $100, baby care items $800 and other expenses $ 1000.

For the new budget the cost allocation will be rent $3000, utilities $2000, food $5000, clothing $3000, childcare $1000, car payment, gasoline$100, insurance of car, entertainment, Medicare $ 100, baby care items $500 and other expenses $500. Due to the losing of job the family can eventually do without car payment insurance and entertainment for that case. The family can use public transport in order to first provide for the basic ones. The family will actually lose luxury activities and comfortable transport due to the usage of public means of transport. On top of that, a lot of boredom due to lack of entertainment as well as moving to recreational Centre will be restricted.

If she loses the minimum wage job and the individual has to be forced to welfare as she searches for another job, she has to reduce some items in the budget for instance she may decide to move a less expensive rental house, minimize other expenses and eventually eliminate the car insurance and its fueling so that she can drive the maximum utility for available resources. The social services that will be good for a minimum wage worker will be joining a charitable trust. This will eventually ensure that the standards of poverty are raised. Besides that, it is essential to ensure social security for the family as it key factor in the family welfare.