Your Questions About Household Budgets Percentages

Susan asks…

What percentage of grocery budget on drinks?

What do you think the average % of the grocery budget is spend on drinks? I’m a female college student, and I spend around $250 a month of food/drinks/toiletries/household products. I don’t drink alcohol, so I didn’t include that, but I tend to drink alot of liquids. Like sports drinks, juice, milk, soda, etc. What would be a good % to expect to spend?
I know there are alot of calories in drinks. But, I’m thin and pretty athletic, so its not a big concern. Thanks!
I live off campus at an apartment. I don’t have a meal plan, so I buy and cook everything. I include the grocery budget as anything I buy at the grocery store, such as food, drinks, toilitries (shampoo,coditioner,soap, etc), household items (toilet paper, paper towels, laundry detergent,etc)

richmama answers:

Less than 15%
We are all adults in my house – 3.
I rarely buy sodas and if I do it’s generic with a 12 pack costing less than $3. I buy tag less tea bags, 100 for $1.50, A little milk, no sports drinks, vitamin waters etc.
I buy bottled water and I hate it, but our water is nasty and the filters are expensive.
I do buy box-o-wine about $30 per month

Sandy asks…

Is this reasonable? (first job and helping with household bills)?

I’m about to interview for a job that will pay out £13,000 a year, which would mean I’m getting £250 a week. I live with my parents because I have a mental illness and was not ready for University yet. A while ago my dad said when I got a job he would like me to put £50 a week towards the rent.

What percentage of your paycheck would usually go towards rent and household bills? I’m guessing I will have to spend more if I want certain groceries. I was hoping to give my parents £20 on top of that for a computer I have to pay off, then I was thinking about giving myself £50 a week in pocket money and saving the rest.

What do you think? What does your budget look like?

PS, I’m not sure if the £13,000 is before or after tax. I think if you get under £23,000 a year you can claim your tax back at the end of the year.

richmama answers:

It totally depends on where you live, but most people spend between 25% – 50% of their income on shelter. In this includes, rent / mortgage, utilities (ie. Water, electricity), phone, tv and internet access. Things like food and household necessities (ie. Laundry detergent) are a whole other category and totally depend on the number of people in the household.

I would say to give £70 a week to your parents is not unreasonable, if they are also paying for most food and everything. Save as much as you can for school though.

George asks…

Im having trouble understanding some math, Its consumer math. I would appreciate it!?

7.you have written a check for $39.95. You have recorded it in your check register.
What amount would you record using the quick method?
(a).$39
(b).$4o
(c).$41
(d).$39.90

8.you have written a check for $43.75. What would you record using the quick method?
(a).$43
(b).$43.70
(c).$43.80
(d).$40

9.You make $32,500. Your state tax rate is 1 1/2%. You have two allowances (exemptions).
If you double the rate, you will double the tax.
(a). True
(b). False

1o.Your gross weekly pay is $750.00. Your medicare rate is 1.45%.
What is your medicare deduction?
(a).$10.88
(b).$108.75
(c).$11.00
(d).$10.80

11.A charge card charges a minimum of $10.00 or 2% of the oustanding balance.
Your oustanding balance is $400.00. What must you pay?
(a).$8.00
(b).$10.00
(c).$400.00
(d).$20.00

12.Your unpaid balance is $2,750.00. Your card has a minimum of $10.00 or 2% of the oustanding balance.
What must you pay?
(a).$10.00
(b).$55.00
(c).$27.50
(d).$15.00

13.A credit card charges a daily periodic rate of .05318%. What are the monthly and yearly rates?
(a). 2.34% monthly and 24.59% yearly
(b). 1.59% monthly and 19.14% yearly
(c). 1.43% monthly and 17.16% yearly
(d). 1.85% monthly and 18.50% yearly

14.Three pounds of hamburgers for $2.97. The unit price is _?
(a).$2.97
(b).$1.00
(c).$1.99
(d).$0.99

15.Change 65% to a fraction and then to a decimal.
(a). 13/20 and 0.65
(b). 63/100 and 0.65
(c). 11/20 and 0.65
(d). None of these

16.If you are using a mortgage to buy a house, then you must have a down payment.
(a). True
(b). False

Monthly payment for a $1,000 Loan
Length oF Lean in Years

Annual Interset Rate: 20 25 30

5.00%: $6.60 $5.85 $5.37

5.50%: $6.88 $6.14 $5.68

6.00%: $7.16 $6.44 $6.00

17.You are borrowing $90,000.00 at an annual rate of 5% for 20 years.
What is the total amount you will pay? Use the monthly payment table at the top!

18.According to books on household budget, you should spend 20-25% of your income on housing.
(a). True
(b). False

19.Calculate the simple interest earned on $2,000.00 saved at 11% APR for 1 year.
(a).$200.00
(b).$210.00
(c).$220.00
(d).$230.00

20.Calculate the simple interest earned on $1,500.00 saved for 8 months at 6% annual interest.
(a).$90.00
(b).$60.00
(c).$30.00
(d).$40.00

21.Calculate the simple interest earned on $1,500.00 saved for 55 days at 2 1/2% APR.
(a).$15.65
(b).$10.65
(c).$5.65
(d).$12.65

22.You buy cisco stock at $17 a share and sell at $14 a share.
(a).Loss of $3 a share
(b).Profit of $3 a share

23.You have made $3,000.00 on the sale of your stock.
The original cost of the stock $15,000.00. Find the percentage of increase.
(a). 20%
(b). 10%
(c). 5%
(d). 3%

24.You purchased shares for $15 each. They are paying a $0.75 dividend.
What is the annual yield?
(a).2%
(b).3%
(c).4%
(d).5%

25.You have purchased a $10,000.00 bond at 85% paying 7% APR. Calculate cost of bond.
(a).$9,500.00
(b).$8,500.00
(c).$7,500.00
(d).$6,500.00

26.You have purchased a $10,000.00 bond at 85% paying 7% APR. Calculate Interest.
(a).$900.00
(b).$800.00
(c).$700.00
(d).$600.00

27.You have purchased a $10,000 bond at 85% paying 7% APR. Calculate the yield.
(a).8.23%
(b).7.23%
(c).6.23%
(d).5.23%

28.You are paying $1,000.00 a month on rent and you earn $36,000.00 a year.
What percent of your income are you spending on rent?
(a).50%
(b).40%
(c).33%
(d).22%

29.60% of what amount is 720?
(a).1,500
(b).1,400
(c).1,300
(d).1,200

30.What percentage of 800 is 80?
(a).10%
(b).20%
(c).30%
(d).40%

31.70% of 400 is what amount?
(a) 28
(b) 2.8
(c) 280
(d) 0.28

32.A lending institution has informed you that they will lend you 350% of your income.
Your income is $45,000.00. What amount will they lend you?
(a).$157,000.00
(b).$157,500.00
(c).$158,500.00
(d).$159,000.00

33.Change 225% to a mixed number.
(a).2 1/4
(b).22 1/2
(c).9/7
(d).225

34.Find the average: $27,500, $28,500.00, $29,500.00, $30,500.00, $31,500.00
(a).$31,500.00
(b).$29,500.00
(c),$29,000.00
(d).$31,000.00

35.You budgeted $360.00 for one year of dry-cleaning. Find the monthly average.
This month you spent $25.00 on dry-cleaning. Are you under budget?
(a). Yes
(b).No

36.Fixed expenses do not vary from month to month?
(a).True
(b).False

37.Annual expenses include car and life insurance and real estate taxes.
(a).True
(b).False

38.Your total monthly expenses is the sum of monthly living expenses plus monthly fixed
expenses.
(a).True
(b).False

40.To find a sales tax of 5% on a puchase of $90.00 using the proportion method you
would write the following: 6/100 = ST/$90
(a).True
(b).False

richmama answers:

Are you sure you couldn’t fit any more questions in there?

Nancy asks…

Help needed with confidence levels?

Select the best interpretation, and criticize the others.

In a survey of household spending, Statistics Canada report that households in Ontario, spent 22% of their annual budget on shelter, with a 95% confidence interval of ± 3%. This means that if we were to undertake repeated random samples of the same size:

a) 95% of such intervals will overlap (intersect) the interval 19% to 25%;
b) 95% of such intervals will cover the population percentage of the share of Ontario households’ annual budget spent on shelter.
c) 95% of such intervals will completely cover (contain) the interval 19% to 25%;
d) 95% of such intervals will cover the midpoint 22%.

richmama answers:

Sounds good

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