Financial Planning and Budgeting
Table of Contents
Case Study: Freddie’s Financial Planning and Budgeting as a Freelance Carpenter
Background
Freddie is a dedicated freelance carpenter living in a modest neighborhood in Bago City. Growing up surrounded by sugarcane fields, he learned the value of hard work early. Now, as a husband and father of two young children—Robert, a second grader in public school, and Noah, who is just one year old—Freddie faces the daily challenge of providing for his family while managing the uncertainties of freelance work. His wife, Liza, stays at home to care for their children, which adds to the pressure of ensuring financial stability. Every day, Freddie leaves home early in the morning, armed with his tools and a heart full of hope. He takes on carpentry jobs that range from building furniture to renovating homes. Each project is an opportunity to showcase his skills, but it also comes with the uncertainty of fluctuating income. As he works hard to support his family, he often thinks about Robert’s school supplies and Noah’s needs, which weigh heavily on his mind.
Income
Freddie earns ₱650 per day from his carpentry work. On average, he works 20 days a month, which gives him a monthly income of ₱13,000 (₱650 x 20 days). This income is crucial for supporting his family, especially with two young children who require constant care and attention.
Financial Planning and Budgeting
Monthly Expenses
Freddie’s monthly expenses are significant and reflect the needs of his growing family:
- Mobile Phone Load: To maintain communication with Liza throughout the day, Freddie allocates ₱200 monthly for mobile phone load. This connection is vital for coordinating schedules and ensuring Liza can reach him if any issues arise at home.
- Social Security System (SSS) Contribution: As a self-employed individual, Freddie contributes ₱1,830 to the Social Security System (SSS) each month. This contribution is not just a number; it represents his commitment to securing benefits for his family in times of need—health emergencies or unexpected circumstances.
- Household Expenses: Freddie faces household expenses such as food, utilities, diapers for Noah, and other necessities for Mia. These expenses typically total around ₱7,000 per month. The cost of feeding two growing children while ensuring access to healthy meals weighs heavily on his mind.
- School Supplies for Robert: As Robert is now in second grade at a public school, Freddie needs to budget for her school supplies and materials. He sets aside approximately ₱1,000 each month for items like notebooks, pencils, and other educational necessities.
- Savings and Emergency Fund: Despite the tight budget, Freddie tries to set aside at least ₱1,000 each month for savings and emergencies. He dreams of saving enough to cover unexpected medical bills or repairs around the house.
Financial Planning and Budgeting
Financial Summary
Based on the above information, here’s a breakdown of Freddie’s monthly financial situation:
- Total Monthly Income: ₱13,000
- Total Monthly Expenses:
- Mobile Phone Load: ₱200
- SSS Contribution: ₱1,830
- Household Expenses: ₱7,000
- School Supplies: ₱1,000
- Savings: ₱1,000
- Total Monthly Expenses: ₱11,030
Remaining Balance
After accounting for his expenses, Freddie’s remaining balance each month can be calculated as follows:
- Remaining Balance = Total Monthly Income – Total Monthly Expenses
- Remaining Balance = ₱13,000 – ₱11,030 = ₱1,970
Conclusion: Financial Planning and Budgeting—Freddie’s Path to Stability and Growth
Freddie’s financial management as a freelance carpenter is filled with both challenges and triumphs. Each day balances between providing for his family’s needs and saving for their future. The pressure of being the sole breadwinner weighs heavily on him as he watches Mia grow into a curious second grader excited about learning and Noah continue to thrive under Liza’s loving care. With a remaining balance of ₱1,970, Freddie feels a sense of relief but knows that every peso counts. This amount may go toward purchasing new tools that could help him secure more jobs or cover unexpected expenses that life throws their way. In this journey of fatherhood and responsibility, Freddie exemplifies resilience and determination. His story reminds us that behind every financial decision lies a family’s hopes and dreams—a testament to his love and commitment to Liza and their children. By navigating the complexities of freelance work with careful planning and unwavering dedication, Freddie strives to create a brighter future for his family while cherishing every moment spent together.
Financial Planning and Budgeting
Questions for Students
- Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
- Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
- Financial Priorities: Considering Freddie has limited income after expenses are paid (₱1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
- Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
- Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
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1. Freddie should adopt a zero-based budgeting approach, ensuring every peso is allocated to necessities and savings. He could also track his spending closely to identify areas where he might cut costs, such as looking for discounts on school supplies or reducing household expenses.
2. An emergency fund is essential for covering unexpected expenses like medical bills. Ideally, Freddie should aim to save at least three months’ worth of essential expenses. With monthly expenses at ₱11,030, he should target around ₱33,090 for a solid emergency fund.
3. With only ₱1,970 left after expenses, Freddie should prioritize building his emergency fund first. Investing in tools can wait unless they directly enhance his earning potential significantly. Establishing financial security is paramount.
4. School supplies for Robert significantly impact Freddie’s budget. To manage these costs, he could consider bulk buying supplies at the beginning of the school year or exploring second-hand options, which could ease the financial burden.
5. Freddie should consider setting long-term goals like saving for a home, funding Robert’s education, and preparing for retirement. These goals will help him prioritize savings and manage current spending by directing surplus funds towards these objectives rather than discretionary expenses.
1). Budgeting skills based on freddie’s income and expenses, freddie should consider budgeting strategies like zero base budgeting, prioritize savings and tracking all expenses and more.This some strategies help Freddie to budget if his salary is small to his family.Freddie can cover necessary costs while building savings for his future goals.
2).Freddie need to maintain his emergency fund because emergency funds provides a safty net duribg unexpected events,example medical emergencies or job loss.We need to keep money aside so that when we froce by unexpected problem,w will have some money.That’s why it was worth it for fredie to keep an emergency fund despite his many expenses.
3). Fredie financial priorities despite of his limitd income,I think he needs to prioritize investing in his tools because he can use them whenever he goes to work, and tools are important for his work as a carpenter because he can’t work without them. If he is accounting for all his expenses and if he has too much, it’s not bad to invest in his own work equipment and also save a little.
4).How mia’s school supplies impact freddie’s overalll buget,consider the total costof supplies she needs including any ongoing expense lie additional material throughout the year.Strategies to manage these costs effectively could include creating a detailed budget. Mia needs to strategize her budget for school supplies because there are a lot of expenses. She needs to make sure it fits, like buying school supplies for the children in stores that have sales or discount. Sales or discount are a big help in budgeting money.
5)Fredie should consider long-term financial goals for himself and his family example set a retirement savings, educational funds,home ownership and debt reduction.This goals can influence freddie’s to set a long-term financial goals by encouraging him to prioritize essential expenses cut unnecessary spending,an redirect funs to savings and investment.When Freddie has long-term goals, he won’t have a hard time in the end, and his mind is set to be at peace because he won’t have to think about where he will get money when he is old.
In Budgeting skills, Freddie should document all sources of income and categorize his expenses. This will help him identify areas where he can cut back. An emergency fund provides a safety net for unexpected expenses, such as medical bills, car repairs and other maintenance. This can prevent Freddie from falling into debt during tough times. Freddie should ideally aim to save between ₱33,090 and ₱66,180 in his emergency fund. Freddie should prioritize saving for his emergency fund, especially since he has a limited safety net. Given the unpredictability of freelance work, having savings to cover unexpected expenses is crucial. Investing in tools can be beneficial for improving Freddie’s ability to take on more jobs and potentially increase his income, this should be considered after addressing immediate savings needs. Freddie allocates ₱1,000 each month for school supplies for Robert. This fixed expense reduces his available income for savings. Freddie can create a dedicated fund for school supplies by setting aside a small amount each month. Freddie may need to prioritize savings over non-essential purchases, leading to more disciplined spending. Setting clear financial goals encourages Freddie to create and stick to a budget, making it easier to track spending and identify areas for savings.
1. Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
– The budgeting strategy that I can recommend to Freddie’s is the 50/30/20 budget because he can divide income according to needs, wants, and savings. If he has a daily earnings of 650 pesos per day, he could adopt that 50% of his income goes to necessities, 30% to wants, and 20% to savings. Freddie should also consider setting up an emergency fund to cover unexpected costs like medical bills or work slowdowns.
2. Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
– It is essential for Freddie to maintain an emergency fund to cover unexpected expenses such as medical emergencies, or periods of unemployment, especially since he has two young children who depend on him. An emergency fund provides financial security and reduces stress in the face of sudden costs. Without an emergency fund, Freddie may struggle to meet his family’s basic needs during tough times. This cushion would ensure that Freddie can continue to support his family even during unforeseen situations.
3. Financial Priorities: Considering Freddie has limited income after expenses are paid (₱1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
– Freddie should prioritize saving more over investing in new tools for work, given his limited income after expenses, to build an emergency fund and ensure financial stability for his family. Having two children increases the importance of having savings for unexpected costs like medical emergencies or education. However, if his tools are inadequate, purchasing necessary tools could increase his productivity and income potential, making it easier to save in the long run.
4. Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
– Freddie, who earns 650 per day, allocates 1,000 each month for items like notebooks or other educational necessities. If Mia’s school supplies consume a significant portion of this budget, it could reduce his flexibility for other essential expenses. To manage costs effectively, Freddie could buy school supplies in bulk during sales or look for second-hand options.
5. Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
– Freddie should think about his long-term financial goals, like an emergency fund, children’s education, and his retirement plans. These financial targets will motivate him to save his money and cut back on the no-need spending. Setting a budget will assist his to help his daily income for his future needs.
Kadusale, Erica A. C36
BSBA-MM
1.Budgeting Skills: First, I suggest the budgeting strategies to start outlining all the expenses and the variable cost. This is a must for him to first of all to all separate her monthly expenses to and look the possible reduction in other areas such as grocery repair cars and school supplies to ensure the budget Freddie’s needs to take amount of money to dedicated. The budget be maintain on the track to apply for the financial goals.
2. The Emergency Fund:The Emergency Fund is a must for Freddie’s uncertain income as a self-employed carpenter. The alternative, like medical bills, car repairs, or a job hiatus, are just a few reasons why the finances can be endangered. The financial net is what he needs to save his family from harm. The financial experts recommend saving the 3-6 months. Freddie’s essential expenses based on the is spending ₱11,030 a month, requires him to target saving atleast ₱33,090 and a maximum of ₱66,180.
3. Financial Priorities:For me, Firstly, Freddie’s has to be focused on creating her backup cash reserve. However, spending more in the name of the technology may give you the chance to earn extra, but increasing supplying a background fund is to be safe to handle on the empty if the bills are due or a job is lost, which happens frequently to freelancers. Freddie’s minimum must be allocated at ₱1,000 monthly to create a substantial emergency account quickly. After achieving a secure emergency fund, the capital is good to earning potential.
4. Impact of Education Costs: For me, purchasing one piece school supplies to Mia the large part remaining budget of Freddie cost of ₱1,000 per month. This expense is already hard to him to makes his financial situation. To boost his savings Freddie could look into buying the school supplies in bulk at the beginning of the year he could look the secondhand school supplies to cut the costs.
5. Long-Term Goals:Freddie’s must be organize his long-term to money goals not only for himself but also for her family, which can be retirement, for her children education, homeownership and emergency fund.This will help to factor and influence his habit, spending money choice to enduring for himself and his love ones. This aim to all committee to Freddie’s, He will be prioritized herself.
Lapore, Ginalyn U. C36
BSBA-MM
1. Freddie could keep track of all his spending to make sure he isn’t spending more than he earns. One strategy i recommend is to divide his money into categories like food, school, and savings and make sure he doesn’t go over the set amount. He could also look for ways to cut costs, like buying or reducing his wants.
2. It is essential for Freddie to maintain emergency fund because it helps when something happen to his family like medical bills or unexpected expenses in the house.
3. Freddie should focus on saving more first. If he saves more, he can handle emergencies better. But investing in tools could also help him get more jobs, so it’s about finding a balance. I would suggest saving more now, then slowly investing in tools later.
4. Mia’s school supplies take up P1,000 each month, which is a good part of Freddie’s budget. He could manage these costs by looking for school supplies that are on sale or buying in bulk/volume to save money over time. He might also reuse supplies from previous years if possible.
5. Freddie should think about long-term goals like saving for his children’s education, buying a house, or even saving for retirement. These goals can help him be more careful with his current spending, making sure he saves enough each month to reach them. He might also set a goal to improve his skills or get certifications that could help him earn more in the future, allowing him to increase his income and give his family more stability.
1. Freddies have to list all the needs to because it can help to determine what things to do with the money.
2.Emergency Fund is very important. Because nowadays we never knew when the time comes and it is more convenient if we have money to prepare future necessities.
3.If we invest more to the things that are consider convenient for us it is a lot more easier for us to have some great tools and we can make a lot more savings and income.
4.Well as a father budgeting towards to Mia’s supplies is a obligation. A preparation all through out the day to give Mia’s a good supply can make her happy and as well as to learn how to budget it well you need to canvas some things or choose some more convenient for her.
5. If Freedie is contented to his job and he can sustain his family well. He maybe consider himeself a stable man for his family. He csn give his family its needs and wantsd. It motivate him more to work to spend the money for his family.
1. Budgeting Skills: Freddie can writing down his expenses in different categories and see where he may be spending money on things that are non-essential or stuff like going out to eat too much when it is expensive. He may even want to try budgeting apps or spreadsheets that can help him keep track of his money more effectively and earmark some for savings as well as a rainy day fund.
2. Emergency Fund : You should always have an emergency fund in case of emergencies, which could come from anywhere Your god damn medical bills or the cost of that urgent repair! As much as possible, Freddie should work toward saving at least 3-6 months of living expenses; that would be around ₱33,090 to ₱66,180 coming from his current monthly expense.
3. Financial Priority: As you can see, Freddie has ₱1,970 left in this example so the first thing he should do is to build his emergency fund and save more. Even considering working tools is a good investment, but it should only be made after securing the resources he already has.Saving more provides stability and prepares him for unforeseen expenses.
4. Impact of EducationCost : Freddies month-to-month expenditures are building up by Mias school supplies, which generally departs him possessing the minimum volume available. To keep these costs under control, he can buy bulk supplies when possible or on-sale items and used materials. It also lets you plan ahead for school expenses so that they will spread throughout the year, rather than all coming in one month.
5. Long Term Goals : Freddie(Father of Mia)Long TERM Goals Buy a house Fund for Mia’s college, invest retirement savings. It will determine his current spending habits as well that he save a bit more and downplay other expenses to ensure they stay within these guidelines.
Gayanilo, Mary Joy T. C36 BSBA-MM
1. Saving is one of the most important things many should do. From my perspective, I will recommend the 50/30/20 Budget, which is 50% for the needs, 30% for the want, and 20% for the saving. With this budget strategy, it can be easier because it already plans how you will spend your money. You already categorize what is the most important and you can easily allocate what matters the most and despite the expenses, he can still save up because of the 50/30/20 budget.
2. It is essential to set up an emergency fund because it is a big help if there is an uncertain event happen you have a source of finances if the time is you have no money. Also, a helps if there is an unexpected situation happens you have money to spend, Just like Freddie, though he has a tight budget, as much as possible he set aside money for an emergency fund which is 1000 pesos every month because if the unexpected happens, he is now prepared just like in medical expenses, hospital bill, house rent and etc.
3. In the said statement, the Balance money of Freddie is 1970 which relief him because it can be used for other expenses but if I suggest of where he uses the remaining balance is in purchase new tool for better opportunities of get more job offers, if there is still a balance after his purchase he can save it to earn interest
4. Education is the success of achieving the dream job, therefore Mia’s Education is really a big impact and there is an effect on Freddie. Although it is tight for him, he is determined and striving to set aside as much as possible for Mia’s Education which is 1000 pesos every month. The strategy he use is good because he mind of setting aside a budget for Education.
5. Long-term goals, He can consider setting up a House, a Business, or a Retirement plan. He can use the balance amount to settle for long-term goals because long-term goals give you clarity and direction in your life, it will give you purpose, and motivate you to do more or be a better person and to strive for what you want in the future and also a preparation unexpected happening in the future.
1. In my own opinion, Zero-based budgeting will be an effective strategy for Freddie’s family considering their current financial situation. This strategy will help Freddie allocate his income toward a specific expense or savings. It will prevent him from spending more than he earns and consider every expense or purchase. With a limited income, this strategy can help Freddie prioritize savings and be mindful of where he can allot his overall income.
2. It’s important for Freddie to have emergency funds because, by doing so, it would help him be at ease for when his family gets sick or when there’s an emergency that will need medical assistance and funds. Ideally, since he allocates ₱1,000 for savings and emergency funds each month, he will have ₱12,000 a year.
3. I think it would be wise for Freddie to prioritize investing in tools for work so then he would be more skilled at what he is doing and he can expand his expertise, which could lead him to a possible promotion and gain higher income with this.
4. Mia’s school necessities take a lot of Freddie’s income. While it is important to have things for school, I think it would be okay to cut back on Mia’s school expenses, and they can instead reuse school supplies from last year. They should set a budget, and they don’t need to buy everything at once; it would be smarter to see what Mia will need first.
5. The long term goals that Freddie can consider are retirement planning, emergency funds, and saving for college for his children. These can influence his spending habit by making sure that his family’s future is secured and they can be at ease when emergencies arises.
1.Based on Freddie’s income and expenses, I recommend the Envelope System as a budgeting strategy. This system can help Freddie track his spending each month.
2.Freddie needs to maintain his emergency fund since he has two children. Having emergency funds can help him lessen his expenses when it comes to medical bills and less stress. He should save at least 20% of his income.
3. Freddie should consider buying new tools for his work since they would benefit him by making firmer, better-quality furniture. If he has extra money from the money he spends on his new tools, he can save that for future expenses.
4.Mia’s school supplies impact Freddie’s overall budget since it all cost 1,000 pesos.
The strategy I would recommend is the 50/30/20 budget, where he divides all his income into needs, wants, and savings.
5. The long-term financial goal that Freddie should set for himself, and his family is to Build generational wealth. These financial goals provide them with financial security and open opportunities for their children by breaking the cycle of poverty. However, this financial goal can take him too long to achieve since he spends a lot on his family’s needs.
1. For me, I think for mobile phone load, he should atleast adjust the amount lesser than 200 but more than a hundred and 50. As for the school supplies, I think it should be adjusted too ranging into 500 but not or more than a thousand, unless if there’ll be necessary and urgent need of supplies. And as of those left for the adjusted expenses, it could be allocated half on the household expenses and half on the savings.
2. It is indeed essential for Freddie to set an emergency fund especially if there’ll be sudden emergencies. In that way, he’ll be able to know where to get the payment for the bills without touching his money that was allocated on his other expenditures. As of the savings, like what I’ve said on the previous question, if he’ll adjust his expenses on some matters like school supplies and mobile phone load, he’ll be able to save even atleast ranging from 1000-15000 pesos.
3. I think, he should take care of his resources as much as possible so that he wouldn’t need to acquire tools for work because those still have a good condition. What he should do is that he’ll prioritize on saving more. He can even open a bank account for savings so that it’ll be guaranteed that he will not be able to touch his money because it won’t be on a cold cash form, rather, his saved money will even grow.
4. School supplies ate or consumed somewhat a huge expense. It isn’t that necessary to spend that kind of amount knowing that the projects and supplies on an elementary student is lesser than the higher years. What he should do is prioritize his savings more so that he’ll be able to save enough amount when his child already reach the highschool or a college year, and for his other child who will be on school too for sure.
5. He should focus about funding his children’s education especially when they reach higher years. He also should be able to acquire more money through investments; may it be small or big, depending on their current state. In that way, these goals can help him thrift money more and he’ll think to start adjusting his budgeting plan and have lesser expenses than the usual.
Budgeting skills In order to ensure consistent saving, Freddie should keep a close eye on his spending to spot any unnecessary expenditures, prioritize necessities over wants, look into ways to cut household expenses like buying in bulk or using energy-efficient appliances, look for additional carpentry jobs or side gigs to supplement his income, and set up a monthly automatic transfer to his savings account.
Emergency fund In order to cover unforeseen costs like as urgent house repairs or medical problems, Freddie needs to have an emergency fund. He should try to save between ₱33,090 and ₱66,180, which is equal to three to six months’ worth of his current monthly expenses.
Financial priorities Freddie should concentrate on increasing his emergency fund to guarantee financial stability, investing in better tools to get more employment and possibly raise his income, and keeping up regular savings to create a buffer for future requirements because his income after expenses is so low.
Impact of Education Costs Freddie could purchase school supplies in bulk at the start of the school year to take advantage of discounts, look for donations from neighborhood programs or organizations, and encourage Mia to reuse last year’s supplies if they are still in good shape in order to lessen the financial impact of Mia’s school supply expenses.
Long-Term Goals Objectives In order to secure his and Liza’s future, Freddie should think about establishing long-term financial goals like saving for a down payment on a home to give his family a stable living situation, creating an education fund for Mia and Noah to guarantee they have access to higher education, and making regular contributions to a retirement fund. These goals can encourage Freddie to save more and spend more sensibly, which will change his current spending patterns.
1. Freddie cpuld startegies his budget by doing an envelope sysytem.By doing this he could allocate cash for specific categories in envelope. He could track their expenses to monitor hos purchases, to balance his budget.
2. Emergency fund is essential and vital in case that Freddie lose his job given that he is a freelance carpenter. This can create a financial buffer that can keep Freddie afloat in times of need without relying on credit. Freddie needs this fund in case of circumtances that could occur in his family, so that he had an extra money to use. I think, he should ideally save 650 pesos in his salary.
3. I think Freddie should focus on food, transporation and savings. In my analyzation, he should prioritize saving more. Given the sitaution that he has no permanent job and his wife do not have any source of income. It is more important to focus on saving in case of emergency. For example, he needs immediate fund for his 1 year old child to buy medicine for cought. It is also good to invest on tools but if the tools are still usable, he can set it aside buying new one and prioritize savings.
4.As a student,school supplies are very important. According to the article, Mia’s school supplies had a big impact or consume a big amount on Freddie’s overall budget. The strategied he could use to manage the cost is to lessen the expense. If he had an extra botebook or school supplies from her previous school year, she can still use it to ease a little biton the budget.
5. Freddie should consider creating a budget plan, or find extra money like, his wife could cooks viands and Feddie could sell it to his co-worker, and the best way is to find a stable job to acquire greater salary to finance their growing needs.
By doing this goals, he could gain extra income, allocate funds to their expenses and needs and also he could develop savings habit. Moreover, he can manages his finances well without hesitations.
1. In order to ensure in keeping saving, Freddie should set up an automatic transfer to his savings account each month. He should also track all of his expenses to identify areas where he might be spending too much, prioritize needs over wants, look for ways to reduce household costs like buying in large amounts or using appliances that are more efficient, and seek out additional carpentry jobs or freelance work to increase his income.
2. Freddie has to save between ₱33,090 and ₱66,180, or three to six months’ worth of his current monthly spending, in order to have an emergency fund. This will serve as a safety net for unexpected costs, such as emergency medical expenses or home repairs.
3. Freddie should put a higher priority on creating an emergency fund to ensure financial stability, buying better tools to get more employment and possibly improve his income, and keeping up regular savings to create a reserve for unexpected requirements given the little he makes after expenses.
4. Freddie could look for donations from local programs or organizations, buy school supplies in large amounts at the start of the school year to take advantage of discounts, and encourage Mia to reuse supplies from the previous year if they are still in good condition in order to minimize the impact of Mia’s school supply costs on his budget.
5. Long-term financial plans can help Freddie change his current spending habits by motivating him to save more and spend carefully. Some examples of these goals include saving for a down payment on a house to give his family a stable place to live, creating an education fund for Mia and Noah to make sure they have access to higher education, and making monthly payments to a retirement fund to secure his and Liza’s future.
1. I will recommend by putting a specific budget that he will spend everyday so that he will know how much will he spend in order for him to control his money. By that he can still manage to save while covering all his necessary costs.
2. Its essential for Freddie to maintain his emergency because he has a 2 children .We cant predict what will happen now or in other day that comes so its better to be ready and 1k i think is enough since his salary is tight to cover a big emergency funds .
3. For me ,ill advice to focus for his priorities in transportation since he was working as most of us we commute everyday. Also i think that prioritize saving more is a good choice since 20 days of his work is too long to have a next income.
4. Freedie may be face a struggle in mia’s need since his income is not enough. However the strategies that he could use is to learn how to do a do it yourself (DIY) things so that he can manage the cost and to save the schoolsupplies in other needs.
5. For me the long term financial goals that Freddie should consider is to build a strong ability skills in order for him to provide for his family . Since he cant invest to those other things because of the problem in expenses .So its better to focus on himself first by that these goals can influence him to be wise and practical in his spending habits.
1. BUDGETING SKILLS:
Budgeting can be a real challenge to those who were struggling to survive in just pennies. For someone like Freddie, who works so hard to support his family financially. A budgeting strategy that I can recommend for Freddie, most importantly, is to track their expenses so that he would be mindful of how to think practically in certain situations. Moreover, he should prioritize their needs over wants. A basic need, like food, is essential to survive every day.
2. EMERGENCY FUNDS:
Building an emergency fund despite his tight budget is really impressive. The 1,000 pesos that he allocates for their emergency fund is a good point to save and cover up for unexpected events. By having this fund, Freddie can have his peace of mind and no more worries to think about if the unexpected situations happen.
3. FINANCIAL PRIORITIES:
Freddie’s situation having limited income is very challenging in his part. He needs to think carefully before to decide whether he will invest or still choose to save. Investing can be a good idea for the chances that his income would increase. However, for me, saving up funds is the best choice to bet in this kind of situation.
4. IMPACT OF EDUCATION COSTS:
The school supplies of Mia are part of Freddie’s monthly expenses. He can manage Mia’s school supplies costs in a way of prioritising the essential items that Mia needs for her studies. Buying an item based on its quality with a cheaper price can help Freddie lessen the expenses. In addition, Freddie can look for the items that are on sale, and sure enough, he can still provide and give the needs of his daughter.
5. LONG-TERM GOALS:
First and foremost, not only for Freddie but we must also learn the financial literacy for us to understand how budgeting and saving are really important in our lifestyle. Second, financial security like emergency funds is a crucial thing that every family should prioritize in case there’s some unexpected situations that we’re really in need of money. Last but not least, family should have a plan in every action they make. Planning or setting a goal will lead to a more organised and fulfilling life.
C36 MARAPO, JUVENIL A.
1. The budgeting strategies that I would like to recommend he implement to cover all necessary costs while still saving is the Zero-Based Budget. From the very first start of his list, he was justifying all of his expenses. Through this budgeting strategy, he had done a great job in covering all the necessary expenses while still saving some money.
2. It is essential for Freddie to maintain an emergency fund for him to grab something when in terms of having a problem in his or his family’s health. He should ideally have saved 1,200 pesos based on his current expenses. Maybe adding some to his savings can help him have a sense of security in terms of applying for jobs or about buying new tools.
3. His financial priorities should focus on saving more money. He should focus on prioritizing saving more than investing his money in tools for work. Tools may help him with stuffs connected to his job but having a huge amount of savings could help him when it comes to emergency.
4. Mia’s school supplies impact Freddie’s overall budget in a way where the expenses of the school supplies may be sold over his budget. The strategies that he could use these costs effectively is by finding a friendly budget type of school supplies. Through these, he can manage buying school supplies for Mia without affecting his budget list.
5. Financial planning and saving for his children are the long-term financial goals Freddie should consider setting for himself and family. These goals can influence his current spending habits in a positive way. These goals can help him save more and manage his expenses in a better way.
Questions for Students
1.Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
– I would recommend the the 50/20/30 budget, 50% of his income should go to he’s needs, 20% should go to savings, and 30% should go to his wants. This budget recommends a specific balance for his spending on wants and needs and I think this will cover all necessary costs while still saving.
2.Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
– An emergency fund is basically money set aside for unexpected events in life. The funds will enable you to cover unforeseen expenses without incurring debt or to live for a few months in the event that you lose your job. I think he will decide based on the things need first and then the remaining is for emergency funds.
3. Financial Priorities: Considering Freddie has limited income after expenses are paid (₱1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
– I think he will focus on the things he needs in work to help him secure his job and then he will save to his emergency funds to secure the budget in unexpected accident that will happen.
4. Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
– Mia’s school supplies has a big impact on Freddie’s income. This will improve grades, creativity, attitudes towards learning, behavior, peer relationships and self-image of Mia so Freddie has a responsibility to give. The strategies that he could use is advance saving, this will help to maintain the stability of the savings.
5. Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
– The long-term financial goals should Freddie consider setting for himself and his family are building an emergency fund, paying down debt, purchasing a home or car, saving for education, and retirement. These goals can influence his current spending habits by knowing his needs and wants, to keep balance and observe his spending habits
1.) Budgeting Skills: My suggestion for Freddie is that he should focus on managing his variable income by prioritizing essential expenses and cutting non-essential costs where possible. I recommend him doing the 50/30/20 budgeting rule: 50% for needs, which is the household and school supplies, 30% for wants like purchasing new tools, and 20% for savings such as emergency fund and for future needs. By doing all of these he can surely manage his expenses and will be able to save up.
2.) Emergency Fund: An emergency fund is essential for Freddie as his income is unpredictable due to him being a freelancer, means he could face days without work. Having an emergency fund would help him cover unexpected expenses. I would recommend him saving at least three months worth of expenses, which totals ₱33,090 (₱11,030 × 3). Starting small and achievable goals, such as saving one month’s worth of expenses could make it easier for freddie to gradually develop his fund over time.
3.) Financial Priorities: Since Freddie has a limited balance of ₱1,970, He should be more focusing first on building his emergency fund, as it will provide them financial security when there is an unexpected expenses. This will help them in times of emergencies without taking on debt. After he reached his emergency fund well enough, Freddie can then consider buying new tools that could help him improve his work and would secure him more or higher paying jobs in the long run. This balance will help him both secure his family’s finances and improve his work.
4.) Impact of Education Costs: He should cut the cost of the school supplies of his child by looking for more affordable options. Freddie could take advantage of school supply sales, buy in bulk for the entire school year, or even reusing materials from the previous year that is still reusable. Second-hand supplies from the community or donation programs could also work. This way, he can still provide Robert with the necessary materials while saving more of his income for other essential needs.
5.) Long-Term Goals: What I really want for Freddie to consider for his long-term goals is he should secure their health and life insurance, and to invest in his children’s education fund, but for him to be able to do this, he should first expand his work, maybe he could do business and start there. These goals can influence his current spending by encouraging him to cut unnecessary costs and invest in income-generating opportunities, like upgrading his skills and tools.
1. By implementing these budgeting strategies, Freddie can navigate his financial responsibilities more effectively, ensuring he meets his family’s needs while also fostering a habit of saving. These measures will help him build a more secure financial future for himself and his family, balancing immediate needs with long-term goals.
2. Freddie’s commitment to contributing ₱1,830 to the Social Security System each month underlines the importance of financial planning for self-employed individuals. This action not only embodies his dedication to providing for his family in times of need but also represents a strategic move towards long-term financial stability. By securing these benefits, Freddie can better navigate the uncertainties of freelance work while ensuring his family’s future is protected.
3. Freddie’s responsibilities are compounded by the financial pressure of ensuring that all household needs are met within a limited budget, making effective financial planning crucial for maintaining stability and growth within the family context.
4. A specific budget for Robert’s school supplies reflects Freddie’s commitment to his child’s education while navigating the challenges of his financial situation.
5. Freddie’s commitment to saving each month showcases a proactive approach to financial management, emphasizing the significance of being prepared for life’s uncertainties. This strategy not only fosters resilience but also sets the groundwork for potential future investments in his family’s betterment.
• Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
-Based on Freddie’s income and expenses, I would recommend that he focus on tracking and prioritizing essential costs, while cutting back on non-essential spending. He could look for more affordable options for household items and find ways to manage school supplies more efficiently. He can also use different types of budgeting such as Envelope System or 50/30/20 budget. This way, he can stay within his budget and still put aside some savings for the future.
• Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
– It’s essential for Freddie to have an emergency fund because the future is unpredictable. Accidents or unexpected situations can happen at any time, so it’s important to have a financial backup in case something happens to him or his family. An emergency fund will help him cover things like medical bills or urgent repairs. Ideally, he should aim to save at least three months’ worth of expenses, around ₱33,090, to create a safety net for his family.
• Financial Priorities: Considering Freddie has limited income after expenses are paid (₱1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
– Given Freddie’s limited income, he should focus on balancing his savings with investments in his work. Tools are essential for his carpentry jobs and can help him take on more work and earn more in the long run. So, while it’s important to keep building his emergency fund, he should also invest in better tools to increase his earning potential.
• Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
-We all know that Robert’s school supplies cost ₱1,000 a month, which is a significant hit to Freddie’s budget. To help lighten this load, Freddie might consider looking for second-hand supplies or buying in bulk, which could save him some money in the long run. He could also check with local community programs or schools that offer assistance with school supplies. By exploring these options, Freddie can ease the financial strain and avoid spending ₱1,000 every month, giving him a bit more breathing room in his budget. After all, every little bit helps when you’re trying to provide for a family.
• Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
-I think Freddie should set some long-term financial goals for himself and his family, like increasing his savings, ensuring his children’s education, and maybe even expanding his carpentry business. Focusing on these goals will help him prioritize how he spends his money now, guiding him toward investments that can provide more stability and growth in the future. By planning for these important milestones, Freddie can create a better life for his family and secure their future.
1. Freddie needs to improve his plans to meet his family’s basic needs. By keeping a good account of all expenses, he can eliminate unnecessary expenses. Creating a monthly budget allows him to track spending, prioritize, and eliminate some unnecessary expenses. This method will be extremely beneficial to him in maximizing his income and meeting the needs of his family.
2. Emergency funds are essential for Freddie, especially since he is a freelance construction worker, which frequently results in financial instability. He should try to save enough to cover at least three to six months of living expenditures, which will provide an emergency fund for unforeseen situations. Given his monthly expenses, he’d require between 33,000 and 66,000 pesos in reserve for a strong safety net. Building this capital gradually gives vital financial security to his family.
3. Freddie has a little excess of under two thousand pesos per month, so prioritizing is critical. His priority should be to increase his emergency money to protect against unforeseen expenditures. It is also a smart move to invest in better instruments that he will use for his work for more career chances and earnings while achieving his financial goals. Furthermore, continuing to make SSS contributions will have a good result for his future benefits.
4. The Impact of Education Costs Robert’s school-related expenses take up a large portion of Freddie’s budget, which can be challenging given his low income. He should consider strategies to cut costs, such as buying things in bulk. Finding both necessary and non-essential items may help him manage his expenses. These solutions may free up finances to meet other family requirements.
5. Setting long-term financial goals will help Freddie and his family stay stable. He may be thinking about saving for a household or making necessary changes to improve their lives. Setting up an educational savings account for his children can help pay school fees in the future and expand options. In addition, he should look at ways to save for retirement other than SSS contributions to secure his financial future.
1. The budgeting strategies I would recommend to him is the zero-based budgeting strategy. In this way he can still saves money and also cover all of the necessary costs and future use of money.
2. It is essential for him to maintain an emergency fund because we can see that his remaining balance every month is not enough to cover for health emergencies or unexpected circumstances. It stated there that Freddie contributed P1,830 to the SSS each month, if he would use or keep the remaining balance P1,970 it would be enough for his saving.
3. For me, he should invest it in tools for work if there is no possible health emergencies because if he use it to invest it will grow and that is the time he could save money if he got enough or extra money.
4. Mia’s school supplies is one of important things so Freddie must give for that. The strategy he could use to manage those costs effectively is that he should buy for more affordable store and only buy the important or needed supplies.
5. The Long-term financial goals should Freddie consider getting for himself and his family is to have a financial planning as early as his sons is still on a young age. These goals influence his current spending habits by knowing the most important reason of why he is spending his money and if it is on good.
Freddie can manage his finances by using the straightforward envelope system, which is a simple budgeting method that provides a clear visual representation of how much income is allocated to categories such as household expenses and savings. Maintaining an emergency fund is crucial for Freddie due to the unpredictable nature of his freelance work. Freddie could aim for two months initially. Given that his monthly expenses total ₱11,030, he should target an emergency fund of approximately ₱22,060. With a remaining balance of ₱1,970 after expenses, if he allocates this entire amount to savings, he would take about 11 months to save up for this goal. Once he achieves this two-month emergency fund, it is essential for him to gradually increase it to cover three months’ worth of expenses. While investing in new tools could enhance his potential income, having savings will provide essential protection for his family during unforeseen circumstances. He should focus on establishing the emergency fund first and then shift to investing in tools once he has a comfortable savings cushion. Managing education costs for Mia/Robert through timely sales or participating in local government assistance programs can also help. Lastly, setting long-term goals, such as homeownership and funding his children’s education, will create clear financial objectives and help him save effectively.
MONDEJAR , CHARMAINE B. C36
OCT 14, 2024
1.With zero-based budgeting, Freddie can see where his money is going and where he can make savings. This enables him to set aside money for savings and prioritize necessary bills.
2.Financial stability and peace of mind are two benefits of having an emergency fund. When unforeseen circumstances arise, it enables Freddie to prevent incurring debt or using up all of his savings.
3.Freddie’s vital expenses are barely covered by his present income. Setting savings as a top priority guarantees he has a safety net and can progressively accumulate money. He can put off buying tools until his financial condition improves.
4.Freddie can manage these costs by:
Shopping for deals: Comparing prices and looking for discounts on school supplies.
Buying used supplies: Exploring options like secondhand bookstores or online marketplaces.
Utilizing school resources: Checking if the school provides any free or subsidized supplies.
By implementing these strategies, Freddie can reduce the financial burden of school supplies and allocate more funds towards savings and other priorities.
5.Freddie should consider setting long-term financial goals such as:
Homeownership: Saving for a down payment on a house.
Retirement planning: Contributing to a retirement fund.
Children’s education: Saving for Mia’s future education.
Impact on Spending Habits:
These goals can influence Freddie’s current spending habits by motivating him to:
Reduce unnecessary expenses: Prioritizing savings over impulsive purchases.
Increase income: Exploring opportunities for additional income streams.
Invest wisely: Making informed decisions about investments to achieve his goals.
Setting clear financial goals provides direction and motivation for Freddie to make responsible financial decisions and work towards a secure future for himself and his family.
1. Freddie earns₱13,150 each month, but after paying for necessities like rent, living expenses, Mia’s school supplies, and transportation, he has just₱1,970 left over for savings. My advice would be that Freddie needs to prioritize his spending by identifying non-essential items like eating out or phone charges and prioritize the most important things in his case, which are the children, food, and utilities, and keep a close eye on all outlays. Another option is to look for different ways to save money without sacrificing the household’s health and safety, such as limiting the amount of water and electricity used and making inexpensive purchases.
2. Freddie has to establish an emergency fund in order to handle unforeseen costs, such as auto repairs or medical problems. Since he is merely a freelance carpenter, the goal is to maintain financial security during trying times, such as days without work to complete. Freddies could have already saved P9000.00 if he attempts to set aside at least ₱1,000 every month for emergencies and saves, or one month’s worth of savings for emergency money, from January to September of this year. He can gradually build up this financial cushion with even little, regular payments, like ₱500 to ₱1,000 per month, which would give him peace of mind in the event of any unanticipated circumstances.
3. Freddie’s financial priority should be to maintain savings and gradually increase his emergency fund. While investing in tools could help improve his income potential, the lack of a stable emergency fund poses a greater risk to his financial security. Freddie could allocate 500 as his additional savings. He could allocate 1000 pesos for his tool repairs. The remaining 470 could be utilized by being invested by his wife into a small but manageable business, such as selling street foods beside their home. These businesses require minimal startup costs and can be easily maintained, offering a potential income stream while allowing them to grow their savings over time.
4. The cost of Mia’s school supplies puts a significant burden on Freddie’s already limited funds. They don’t require a thousand pesos to purchase school materials. If Freddie knows how to prioritize affordability, I’d suggest a maximum of 500–600 pesos covers the school materials. To better manage these expenses, Freddie should buy school supplies in bulk, either before the beginning of the school year or during sales, when prices are lower. Without compromising Mia’s education, you can also save money by looking for used materials or reusing things like notebooks, bags, or folders from prior years. This leaves P400.00 that can be saved or utilized for other necessary needs.
5. To ensure his family’s financial security in the future, Freddie should establish long-term objectives such as building a small business or saving for property. These objectives will motivate him to reevaluate his spending, reducing unnecessary spending and concentrating on creating a solid savings strategy. Setting Mia’s education as a top priority and looking for side gigs or skill expansion as means of boosting his income would also help Freddie build a more secure financial future. These objectives can direct him toward a more secure and wealthy future as his savings increase.
1. The budgeting strategies that I would recommend for Freddie’s income is to track and adjust his budget regularly because regular tracking is essential for evaluating his progress toward his objectives. Adjustment also enables him to reallocate funds as needed if there a need an increase to savings or reduce to spending.
2. Because life is unpredictable, unforeseen costs may arise for things like medical emergency, or job loss. By acting as a safety net for his finances, an emergency fund keeps Freddie out of debt and keeps him from using high-interest credit cards or loans to pay for such expenses. Based on his current expenses he should save up to 2000 because the cost of living arises and so expenses are expected to increase.
3. The financial priorities Freddie should focus on is his savings because It ensures his savings to have enough to handle significant or back-to-back emergencies without stress.
4. Mia’s school supplies impact Freddie’s overall budget because busying school supplies only happens once a year and based on his monthly budget that is 1,000 is too big. He could put it on his savings because it also important to fund it to savings so that incase he use it, he can use it away without delays.
5. The long-term financial goals should Freddie consider setting for himself and his family is the Education fund for his children because in in the long run he has money to use when his children needed it. This goals can influence his current spending habits through shaping his financial behavior and budgeting.
1. I suggest the 50/30/20 budgeting because based on his monthly expenses most of his income goes to household expenses like food, water, etc., it will help him to allocate where to spend and help him to manage and save his remaining income.
2. It will help him in case one of his family got sick that need to be hospitalized or need to buy medicine. And if accident happened he can use the emergency fund and it will not add to his expenses. Based on his income monthly, he should save 1,100 – 1,200 a month.
3. He should still focus more on providing his family needs and for his remaining income as I stated in my previous answer, if he can add his savings from 1,000 to 1,200 and the remaining 1,770 he can use it to buy tools for work. If his tools are still in good condition he can split or add the remaining income to savings, needs, and for his child school expenses.
4. It doesn’t affect that bad to his overall budget since he already plan it for his child and it’s for his daughter. If ever his daughter has a passion in drawing, painting, etc… It can help her to showcase her talent. And he can just buy the basic needs of his daughter, in that way he can budget his income.
5. The emergency fund and savings because even he has medical insurance for his family, having savings can help you to avoid debt if ever his insurance cannot cover the medical bill. This will help his future and future of his family.
1. Budgeting Skills: My recommendations for Freddie, regardless of his budgeting strategy, are that he needs to practice the 50/30/20 or 80/20 rule. This will help him cover all his necessary costs by practicing it. However, in some cases this kind of budgeting strategy didn’t work at all because the amount of salary the employee receives is not enough, which savings is insufficient. The other thing that Freddie can do is to separate the money from the most to least necessary by using a budget binder, which is common nowadays. This will be convenient for him to save as he budgets his money.
2. Emergency Fund: It is essential for Freddie to maintain his emergency funds because it will be a big help for him when emergencies come. This is to lessen his worries when it comes to hospital bills, medications, and other emergencies that need some funds for that. Moreover, his ideal savings based on his current expenses is around ₱1,000. This is based on his budgets for his expenses and the remaining salary that is for him to save up.
3. Financial Priorities: Freddie needs to focus on his emergency funds, debts like SSS, and secure his savings. This 3 is the most important in budgeting and saving since there is only a limited income remaining. In which this will be a big step for him to invest after complying with his priorities. It is to ensure that he has already built a strong foundation in his emergency funds, managing debts and savings as he starts investing himself in tools for work. This is to make decisions for his future investments and financial plans.
4. Impact of Education Costs: Mia’s school supplies impact the overall budget of Freddie because it is an additional expense for him as he caters to the needs of his daughter. Moreover, the strategy that he needs to perform is canvassing the school supplies of Mia and then computing the total expense that he needs to allocate for Mia’s school supply. Freddie also needs to try canvassing the school supplies in those stores that offer lower prices of school supplies. Lastly, Freddie needs to prioritize those school supplies that are very essential, like pens, notebooks, paper, and art materials, for him to know the budget that he needs to allocate for the school supplies. Overall, this is to ensure that the school supply costs are aligned to the budget allocated to the school supply.
5. Long-Term Goals: The long-term financial goals that Freddie needs to consider for himself and his family are securing his savings and investments without relying on his salary in employment. This also includes the emergency funds, retirement plan, and children’s education. These long-term financial goals will have a great impact on his and his family’s futures. This will foresee their future as he secured these financial goals. In some instances, these goals will be a motivation for him to practice savings, invest wisely, and make decisions responsibly that have a great influence on his current spending.
1. Freddie is a freelance carpenter and a husband of a two young children. He faces daily challenge of providing his family’s need. Based on Freddie’s income and expenses in the case study, he earn 13,000 pesos in 20 days a month and a monthly expenses of 11,030 pesos. The budgeting strategies I would recommend to Freddie is the 50/30/20, this budgeting method is a great option for newbie budgeters like Freddie. He needs to list his expenses into three categories the necessary expenses or the needs expenses, discretionary expenses or the wants and the savings. He needs to list all of his family necessary expenses and setting aside money for saving. Freddie can also customize the 50/30/20 budget if he needed to pay more of necessary and save. These strategies can help Freddie balance his expenses and building savings.
2. It is essential for Freddie to maintain and save emergency fund incase of an unexpected financial emergencies, like medical bills and job loss. This unplanned expenses can impact his financial stability. Freddie should save his remaining balance of 1,970 pesos and plus it to his saving and emergency funds of 1,000 pesos that will be 2,970 pesos multiply 3 to 6 months equivalent of 8,910 to 17,820 pesos he aim to save. This money can secure Freddie financial safety net and preventing dept during crises.
3. Freddie should prioritize saving over investing in tools for work. Given his limited income of 1,970 pesos after expenses. Freddie can set aside or save the remaining balance of his income. Once he has a sufficient emergency fund, he can consider investing tools that may enchance his earning potential.
4. Based on the case study, Freddie always set aside 1,000 pesos each month for Mia’s school supplies. It impacts Freddie overall budget because of the cost of the school supply that are quickly rising. The strategies that he can implement to manage this cost effectively are, he can list the essential supplies of Mia and its prizes. Also he can buy supplies in bulk to reduce per item cost and as well he can buy school supplies in a discount day. He can also reuse items that Mia didn’t use. This strategies can help Freddie save and control expenses.
5. The long – term financial goals that Freddie should consider are saving for a child college education. Establishing a fund for his children college for a long term financial goals can help Freddie reduce his future expenses and secure his children education. Also he can launch or build a small business considering his work as a carpenter, he can start making some furnitures and sell it. These goals can influence current spending by encouraging Freddie to prioritize savings and adopt a budget that aligns with these objectives.
freddie should do the 50,30,20 rule for financial stability. 50% for needs, 30% for wants, and 20% for savings. he could also track all small expenses to avoid overspending. cutting unnecessary spending would help him save more consistently.
having an emergency fund protects Freddie’s family from unexpected events like illness. Ideally, he should save for atleast 3k a month for emergency funds or other unexpected expenses. He needs to adjust little more of his spending.
he should secure his savings first for emergencies since stability is crucial. once he save enough he can invest in better tools or rather improvise intead and or he can just borrow tools from a friend that has extra. this could help him get more jobs and increase income.
to manage this, freddie should use a previously used or old school supplies that are still essential to use. He could also ask teachers about essential items to avoid unnecessary spending.
Freddie’s long-term goals could include building a home repair fund, saving for his children’s education, and starting a business. This can influence his spending like spending for the most essential needs since he has a future goal to achieve.
1. For me, the budgeting strategies that I would recommend to Freddie so that he’ll be able to cover all necessary cost while still saving is that to create a detailed budget plan. List fixed and variable expenses to understand where the money is spent. Another is to keep track of his spending to know where to cut back incase of excess spending. Lastly is to prioritize needs over wants because we need it in order to survive.
2. For peace of mind, it is essential for Freddie to maintain an emergency fund because he can used it incase there is an unexpected expenses, such as medical emergencies or job loss. In that way he can also avoid debt because he has money set aside for emergencies. Based on his current expenses he should at-least save up 3 to 6 months of his income which is 11,030 x 3 = 33,090 minimum of 3 months and 11,030 x 6 = 66,180 maximum of 6 months. In that way Freddie would be able to safeguard his family’s well being in case of unexpected situations.
3. Freddie should focus on his emergency fund and on how to increase his savings because they are crucial incase of life turning events. And I think Freddie should prioritize saving more because if his tool is still can be use and in good shape it will be unnecessary for him to prioritize it, it will only add in his expenses, of course it is also important to invest in tools because he can use it in work but if unnecessary, saving more should be prioritize.
4. If school supply cost were to increase it will limit the amount available for other spending or savings. Freddie can use the strategy of bulk buying, in that way he can save more money for school supply and will prevent last- minute purchases at higher prices.
5. For long-term goals Freddie should consider setting aside money for education savings of his children and also to invest in health and life insurance and set aside for emergency funds. This goal influences his current spending in the way that he will need to create a stricter budget plan to ensure certain amount are directed towards his long-term goals. Freddie might also consider finding part-time jobs so that he has extra income to ensure he achieve his long-term goals.
Esmund James A. Oquiana-C-37
1. Frieddie should try to track his expenses more closely, by budgeting or discretionary spending, and he should explore bulk purchasing to lower his household expenses
2. It is essential for managing unexpected expenses like, urgent home repairs, or medical bills. He should save for about 3-6 months worth of expenses.
3. Freddie could invest new tools enable for him to upgrade and gain more job opportunities but prioritizing savings can provide a safety precautions incase of emergencies.
4. School supplies is a fixed necessity, waiting for sale and bulk buying or using second-hand items can help manage these cost.
5. Freddie could aim for investing a small carpentry business or homeownership influencing current savings and investment habits.
1. In budgeting in recommend Freddie to have a 3 to 5 strategies for him to be able to cover all the necessary cost while saving
First Freddie should track all the expenses for few months for him to have a clearer picture of where money is going and he also need to identify areas where he can cut back. Second if to create a budget which is based on his tracked expense, he need to set a detailed budget and allocates his monthly income to different categories like housing, utilities, food, children allowance and etc. Through this it will help Freddie to prioritize important things and not to overspend ni any area. Next is to look for savings, in this way Freddie was able to save money on everyday expenses, for example Freddie can buy groceries in bulk, using coupons or find cheaper alternatives for the certain items. Lastly, prioritize needs over wants he should differentiate between essential needs and wants , he should focus on meeting his needs and limit spending on wants.
2. In emergency funds it is essential to Freddie have an emergency funds for unexpected events like medical bills, home repairs accidents, and other problems he may encounter. In able to meet this Freddie may save 10% or just 5% in his monthly income for emergency funds
3. In financial priorities I think Freddie should prioritize savings , savings is one of the importante things that Freddie can do to have a more remaining balance in his work income and this will help Freddie in future needs
4. Mia school supplies are a big part of Freddie’s budget.in this situation mia can look for other things that can help him to manage cost effectively like shop around for deals, use second items or do DIY and budget for the future education cost
5. The long term goals should Freddie to consider in setting for himself and his family are home ownership, retirement savings and children’s education because this long term goals may influence Freddie to be conscious in spending choices for him to achieve those goals.
Freddie’s story as a freelance carpenter shows just how challenging financial planning can be when you’re the sole breadwinner for a family. With a monthly income of ₱13,000, he has to carefully balance his budget to cover expenses like food, school supplies for his daughter, and savings for emergencies. It’s not an easy task, but Freddie has already taken some smart steps.
One of the best things Freddie does is track his spending. However, to stretch his income further, he could dive deeper into his household expenses, looking for areas where he could cut back, like finding cheaper alternatives or eliminating unnecessary costs. That way, he might be able to save a bit more each month.
Freddie also makes sure to set aside ₱1,000 each month for an emergency fund, which is a crucial safety net when you’re freelancing and your income isn’t guaranteed. Ideally, he should aim to save three to six months of his expenses, which would be around ₱33,090 at a minimum. While that may seem like a lot, even putting away a small amount consistently can add up over time.
With ₱1,970 left after paying his bills, Freddie has to decide between saving more or investing in new tools for his work. If his tools are still in good shape, it makes sense to prioritize saving, but he’ll need to upgrade when necessary to continue securing jobs. A balanced approach—putting some toward savings and some toward tools—could be the best way forward.
One of the bigger strains on Freddie’s budget is the ₱1,000 he sets aside each month for his daughter’s school supplies. To ease this burden, he could buy supplies in bulk or look for programs that provide school materials to families in need. Little changes like this can help make a big difference in the long run.
Ultimately, Freddie needs to focus on his long-term goals, like saving for his children’s education and his own retirement. By keeping these goals in mind, he can stay disciplined with his spending now. With thoughtful planning and smart decisions, Freddie can provide his family with more stability and work toward a better financial future.
1.) like I have seen in the case of Freddie. The envelope system is the budgeting technique I can suggest. By restricting spending to the amount of money in each envelope, this technique makes it simpler to stick to the spending plan and helps enforce discipline. Food, groceries, transportation, and other expenses must be identified and determined by Freddie. It is crucial that he set aside money for savings while he is managing his finances.
2.) In our daily lives, having an emergency fund is essential. Every month, Freddie sets aside 1,000 for emergencies and savings, which will help him hide amid unforeseen circumstances. In times of need, having an emergency fund can offer both financial security and comfort.
3.) Establishing a balance between short-term demands and long-term expansion should be Freddie’s top financial priority. With only 1,970 in income, Freddie should prioritize saving money. His top concern should be saving money so that he can protect his financial future. In this manner, Freddie will be better able to conceal his unexpected events. He might consider setting money aside for the purchase of tools for his work if this will result to increase in revenue.
4.) Mia’s school supplies may raise Freddie’s monthly spending, which could have a big effect on his budget. Freddie can use some tactics to control the price of Mia’s school supplies. First, create a budget. Within his overall budget, Freddie should allocate a certain sum for Mia’s school supplies. Second, purchasing in bulk is a tried-and-true way to reduce the cost of school supplies. When bought in bulk, supplies like paper, pencils, tissues, and markers are frequently far less expensive. By using these two tactics, Freddie will be able to keep his financial situation stable while controlling and managing the expense of Mia’s school supplies.
5.) Building an emergency fund is the first long-term objective that Freddie should think about establishing for himself and his family. This will help Freddie pay for unforeseen expenses and keep him out of debt when he needs it most. Secondly, it is crucial to save money for Mia’s education, whether it is for school supplies or fees. Finally, investing in Freddies’ work tools could result in a rise in Freddies’ income. By setting these financial objectives, Freddie can cultivate a more careful spending style that promotes the financial stability of his family.
1.) Based on his income and expenses I think he should also write down his expenses monthly and think of a certain allocation where doesnt require a monthly budget or can offer a alternative , for example for the load he spends 200 pesos a month given that monthly he has 1,970 left , I do reccommend that he should purchase a longer promo mostly that will last 2 months up with this it will help him save an amount of 200 pesos for the next month , next is the 1,000 allocation for the school supplies of his child monthly , I believe as a second grader which clearly studies in a free institutions 1,000 is a big amount for only notebooks , pencils and projects since this items are slow consumable items which means it doesnt need to be replaced monthly with this I think he would be able to save 500 pesos and add it to more important allocations.
2.) – Freddie is a freelance worker which has a unpredicted danger in his job , he also is a father of an infant , a student and a busy at home wife , given that he is the sole provider of the family it is essential for him to allocate budgets for emergency use of his family so that in case of an emergency he has a budget allocated. In his current expenses I think he can elevate this emergency savings up to 500 pesos because he has almost 2,000 left and a 1,000 monthly allocation for their family of 4 is kinda short and risky because in a instance where freddie isnt able to get projects same like last month , thats why 1,500 is my ideal amount for fredies savings.
3.) – A financial priority which I think he should focus more is the savings/emergency fund because his job is freelance meaning it doesnt mean that he earns a lot this month he would get the same next month , and in terms of buying a tools I believe he should have a separate savings for that little by little but generally it is not neccesary because in freelance construction tools are provided by the contructor and all you have to give is to perform your skills , so saving is more crucial in his situaations where future is unpredicted.
4.) In my view Mias school supplies budget is over its ideal and enough budget , school supplies are things that last long like notebook, papers , pencils , bags which doent need to be new monthly and this has a big impact to the overall budget instead of cutting half of the budget and putting it to something more important will have a positive outcome to his budget. What I can reccoment is freddie should cut off the 1,000 budget for the supplies put that other half in the savings or emergency category where he can get incase his child does need a budget for a school supplies.
5.) – Long term financial goals I can think of suitable for freddies situation is a fund for his childrens studies because he still has years to save up for future increase of supplies or tuition . Next is when his children reached the age where they can takecare of themselves if possible I think his wife should also look for a job because his job is unpredictable monthly so with both of them having income and savings it will be good and positive for theit family. Third is small steps in investing if he has 2,000 extra a month he can save 300+ for him to be able to buy jewelries that they can use in times of need. , A house renovation little by little also is part of a long term goal because in philippines season is unpredictable also so with better materials use to their home it can be a advantage for future disasters where they do not need to worry anymore . Lastly is investments under the insurance category either for him or his family that he can just put an amount monthly for unpredicatble events in the future.
BATOHANON,LEMWILYN C36
1. Based on Freddie’s income and expenses as a freelance carpenter, I reccomend that he implement or put into practice is by making notes about his income and categorizing his expenses monthly. Where he can regularly monitor and adjust his expenses to avoid overspending something and to remind him that once it’s gone, he can’t spend more, helping Fredie stick to his budget.
2. It is essential for Fredie to maintain an emergency fund for him to have an immediate money incase of disasters like flood, earthquake and fires. And also for medical emergencies incase fredie happen to have an acciendent while at work and especially that they have a baby. For me, I think Freddie’s savings are good based from his income since he already has SSS and he also allocates 1000 to his savings monthly.
3. The financial priorities Freddie must focus on is that for me, he should save more of his income andd if he has already enough money to buy, he should prioritize investing on durable and good quality tools and not just cheap tools for it to last long and avoid spending to buy new tools again.
4. Freddie must adjust his budget regarding Robert’s school supplies because I think 1000 pesos monthly just for school supplies is too big for me. That means Robert’s allowance just for school supplies a day is 50 pesos [1000 ÷ 20 days = 50 (atleast 4 weeks a month)]. He doesn’t need to spend that much since you don’t need to buy a paper or pencil everyday. And Robert can just reuse his left over paper, notebooks, or ruler without tthe need for new purchases.
5. Freddie should invest in his retirement and for his two childrens education. Freddie should save for his retirement to ensure his future when he become old and cant continue working as a carpenter anymore. And just having SSS is not enough. Freddie must also prepare for his education fund for Robert and Mia, to have a prepared savings when they both go to college and help pay their tuition and other school expenses.
1. Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
Freddie should implement a zero-based budgeting strategy, ensuring every peso of his income is allocated to specific expenses and savings to effectively manage his finances. Additionally, he should prioritize building an emergency fund to handle unexpected costs, which will provide financial security during slower work periods.
2. Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
Maintaining an emergency fund is essential for Freddie to cover unexpected expenses, such as medical bills or repairs, especially that he has a baby, without disrupting his regular budgeting and financial stability. Ideally, he should aim to save 2 thousand for emergency fund and saving, with a remaining balance amounting 970 PHP for tools investment because saving for emergency fund is much important than investing on its tools as it provides a sufficient budget during periods of low income or unforeseen financial challenges.
3. Financial Priorities: Considering Freddie has limited income after expenses are paid (P1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
Freddie should prioritize saving more to build a financial stability, as a stable savings can provide security in case of unexpected expenses or income inconsistency. While investing in tools is important for his work, ensuring he has enough savings to cover emergencies and maintain financial stability should come first, allowing him to invest in his business gradually without risking his and his family’s financial health.
4. Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
Mia’s school supplies add a significant expense to Freddie’s overall budget, potentially tighten his finances as a freelance carpenter. To manage these costs effectively, he could explore strategies such as setting a dedicated budget for school supplies, utilizing second-hand resources, or purchasing items with inexpensive prices and in bulk to take advantage of discounts.
5. Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
Freddie should consider setting long-term financial goals such as establishing an emergency fund and planning for his children’s education. These goals can influence his current spending habits by encouraging him to prioritize essential expenses and minimize discretionary spending, ultimately fostering a more disciplined approach to budgeting.
Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
One of a budgeting strategy that i can recommend would be the 50%/30%/20% budget method because Freddie has a family to feed and he must focus on what he and his family really need before spending what he/they want. The income is pretty much low for a family of four members. That’s why, Freddie needs to be cautious about his income and how he would allocate his expenses in order to reach for a whole month and to save enough money for the remaining months.
Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
It’s very important to save for emergency fund because it’s crucial to have an emergency fund incase of unexpected expenses like medical bills and emergencies.
Financial Priorities: Considering Freddie has limited income after expenses are paid (₱1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
Freddie can focus on both aspect if he manage his savings well in a month, then by the end of the month he can also buy tools that he need or missing for his works.
Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
Freddie can buy Mia a cheaper school supplies in the market, he can also check any online shop which offers cheapest price, allowing him to minimize his budget upod Mia’s school supplies which he doesn’t need to travel and check it out on a market, instead purchase it easily online.
Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
As a college student and personally a child, I have a little knowledge and understanding about spending habits as i also experience it as a teenager, that spending habit is really a bad gambling. What comes in my mind is that, Freddie must think of prioritizing his child’s future, that those children will eventually grow each and everyday that instances might come where his childs would have ask something unexpectedly and if they reach college, there are some courses which requires more money for specific course-sources, materials, travels, and personal expenses, other than tuition fees.
By establishing goals, Freddie will be more driven to reduce wasteful spending in order to meet these objectives, which will help him make better spending decisions now.
1. Budgeting Skills
The ideal budgeting techniques for Freddie would be to use zero-based budgeting, which assigns every peso of his income to a certain category while making sure that expenses never exceed revenue, in order to help him save money and pay for his essentials. Expense tracking: Keep an eye on expenses and pinpoint areas where he may make savings by using spreadsheets or applications. Put needs before wants. Pay for necessities first (food, housing, and utilities) and then set aside money for extracurricular activities. And Modify Variable Expenses: To free up more money for savings, look for methods to cut variable expenditures like eating out or entertainment.
2. Emergency Fund
For Freddie, keeping an emergency fund is essential for a number of reasons, including financial security and the safety net it offers against unforeseen costs like auto repairs or medical problems. And Stress Reduction: His worry about unstable finances might be lessened by knowing he has money. His goal should be to save enough money for three to six months’ worth of living costs. He should aim for an emergency fund of ₱60,000 to ₱120,000 if his monthly costs are about ₱20,000.
3. Financial Priorities
With only ₱1,970 remaining after expenses, Freddie should concentrate on the following financial priorities: Investing in Essential Tools; If work tools can significantly increase his income potential, he should consider investing in them, but only if doing so won’t jeopardize his emergency fund; Debt Repayment; If Freddie has any debts, allocating funds to reduce these should take precedence; and Building Emergency Funds. Finding a balance between saving and investing in essential instruments that can result in better income is ultimately crucial.
4. Impact of Education Costs
Mia’s school supplies have a big impact on Freddie’s spending plan. She has to prioritize essentials, shop wisely, budget for school supplies, and purchase second-hand supplies in order to efficiently handle these expenses.
5. Long-Term Goals
Long-term financial objectives like home ownership and saving for a down payment on a home that can support his family’s stability should be on Freddie’s radar. Mia’s Education Fund: Setting up a fund to cover Mia’s future educational costs will relieve financial strain down the road. Finally, retirement savings: Early retirement savings might have a big long-term impact on him.
1. i recommend freddie to implement the zero based budget because this method can help Freddie anticipate all upcoming expenses and it includes his savings. It is perfect for freddie to provide for his family and secure their future.
2. Its essential for Freddie to maintain the emergency funds so that if something unexpected happens they can use the funds to use without going into debt.
3. Freddie, who works as a freelance carpenter, faces especially significant hazards. Unlike salaried employees who have a consistent paycheck, Freddie’s income is unpredictable. Freddie has to put a high priority on creating an emergency savings fund because of this financial unpredictability. It is crucial for Freddie to prioritize building an emergency savings fund, which would act as a financial buffer in case of accidents, illnesses, or periods when work is scarce.
4. Freddie can use budget savings strategies so he can regularly make adjustment as needed for the the school supplies.
5. Freddie should consider saving for his children because he already has 2 children and the education costs continues to rise so that he is prepared for the childrens future and secure his family.
1. For me, I think for mobile phone load, he should atleast adjust the amount lesser than 200 but more than a hundred and 50. As for the school supplies, I think it should be adjusted too ranging into 500 but not or more than a thousand, unless if there’ll be necessary and urgent need of supplies. And as of those left for the adjusted expenses, it could be allocated half on the household expenses and half on the savings.
2. It is indeed essential for Freddie to set an emergency fund especially if there’ll be sudden emergencies. In that way, he’ll be able to know where to get the payment for the bills without touching his money that was allocated on his other expenditures. As of the savings, like what I’ve said on the previous question, if he’ll adjust his expenses on some matters like school supplies and mobile phone load, he’ll be able to save even atleast ranging from 1000-15000 pesos.
3. I think, he should take care of his resources as much as possible so that he wouldn’t need to acquire tools for work because those still have a good condition. What he should do is that he’ll prioritize on saving more. He can even open a bank account for savings so that it’ll be guaranteed that he will not be able to touch his money because it won’t be on a cold cash form, rather, his saved money will even grow.
4. School supplies ate or consumed somewhat a huge expense. It isn’t that necessary to spend that kind of amount knowing that the projects and supplies on an elementary student is lesser than the higher years. What he should do is prioritize his savings more so that he’ll be able to save enough amount when his child already reach the highschool or a college year, and for his other child who will be on school too for sure.
5. He should focus about funding his children’s education especially when they reach higher years. He also should be able to acquire more money through investments; may it be small or big, depending on their current state. In that way, these goals can help him thrift money more and he’ll think to start adjusting his budgeting plan and have lesser expenses than the usual.
1). Budgeting Skills: Freddie will need to focus on necessities and figure out how they can cut costs with a strong budget. He should also try to spend less and earn more. This also means that Freddie can take advantage of this by using the 50/30/20 budget plan: utilizing 50% towards basic needs, 30% on discretionary spending (i.e. wants), and maintains a further emergency fund with an additional extra pot at around.
2). Emergency Fund: Freddie should save an amount equal to 3-6 months of his monthly expenses, or P11,030.
Emergency Fund Calculator
3 months of expenses:
P11,030 x 3 = P33,090
6 months of expenses:
P11,030 x 6 = P66,180
His emergency fund should contain P33,090 to P66,180. This will at least give him enough to get by and then he should be able to scrape through the remainder without straining.
3). Financial Priorities: Establish an emergency savings. This fund should cater to at least 3 months of his expenses. He can relax with this plan in place if something unforeseen occurs. He then can start saving for his tools he need to do the job with. But it would also be investing in the work equipment that could help him make more money later, and potentially – given he can now focus on his actual job and not just running the numbers game all day long support his financial future.
4.Impact of Education Cost: Mia’s monthly expenses as a result of her school supplies, which reduces his ability to save money or buy other things. In addition, instead of being urged to spend this money cautiously , it would be important if Freddie looked into scholarships that are offered there. He could also look into the cheapest (but good) alternatives that are listed in other sections or pursue sales or resale offers that already include what she needs.
5). The long-term goals: Freddie should have a few, like retirement savings and maybe even some kind of emergency fund or kids’ education funds. This will eventually push him to save more, spend less on unnecessary things and make a budget wisely.
1. Budgeting Skills:
Based on Freddie’s income and expenses outlined, the budgeting strategies he should implement is the enveloped budgeting, because in this type of budgeting he can use an actual cash to easily pay for his expenses. It is also an easy way for savings especially in emergency funds, once there is an emergency he can easily access the cash to pay for the expenses.
2.Emergency Fund:
It is essential for Freddie to maintain an emergency fund because if there is an emergency happened in his family like accidents, health issues, payments in school, or late payments in his salary, he can use this emergency funds to cover the expenses. Based on his current expenses I think he can saved up ₱55,150 within 5 months (₱ 11,030 ×5).
3. Financial Priorities:
In my opinion, he should prioritize to invest or buy a tools for his works therefore if he has a complete or many tools for his work he can make his works faster and easy. It can also help him to secure more job. Once he have an other work he can save more money for emergency funds and for other expenses.
4. Impact of Education Costs:
Mia’s school supplies impact Freddie’s overall budgets by having a expenses every month which is around 1k. This value decreases the income that Freddie’s can receive in his salary where he can use in other important things. To manage these costs effectively Freddie should buy a school supplies that is badly needed in school, like notebooks, pen, pencil, and paper on a store that is in “sale”.
5.Long-Term Goals:
For me, the long-term financial goals should Freddie consider setting for himself and his family are repairs for his house, retirement planning , and educational funds. He can also save to start a business which will give them an another income. These goals will influence his current spending habits by adding his savings. His currently monthly savings is ₱1,000, he has a remaining balance of ₱ 1,970. The ₱ 1,000 in his remaining balance will be go to his monthly savings, therefore his monthly savings will be ₱ 2,000 which will help him to achieve this long term goals.
1.) Budgeting Strategies:
•Track income and expenses, cut unnecessary spending, and use the 50/30/20 rule. Freddie should prioritize needs, automate savings, and consider the envelope system for expense control.
2.) Emergency Fund:
•An emergency fund protects Freddie from unexpected costs. Ideally, he should save 3-6 months worth of expenses (₱60,000-₱120,000), starting small and building gradually.
3.) Financial Priorities:
•With limited leftover income (₱1,970), Freddie should prioritize saving to build an emergency fund. He could invest in work tools only if they significantly increase his income potential.
4.) Impact of Education Costs:
•Mia’s school supplies add pressure to Freddie’s budget. To manage these, he can create a sinking fund, buy during sales, or consider second-hand supplies.
5.) Long-Term Goals:
•Freddie should focus on building an emergency fund, saving for Mia’s education, and considering homeownership or retirement savings. Clear goals will help guide his spending and encourage savings over discretionary purchases.
1).I will recommend the 50/30/20 budget strategy which means ….
50% for needs such as payment for utilities, SSS,Load and house necessities(50% of 13000 is 6,500).
30% for wants such as Mia’s school supplies, new clothes and new tools (30% of 13000 is 3900).
20% for Savings (20% of 13000 is 2,600) which become easy for the money to grow much faster.
2).For Freddie, the emergency fund is about being ready for life’s unforeseen circumstances since his work is still uncertain to cover their monthly expenses and having a safety net for emergencies will relieve his tension and provide him with peace of mind. Based on his expenses and remaining balance of 1,970 pesos , he should have ideally saved up 2,970 pesos per month.
3).Freddie should focus on buying tools for work since it is his current needs.Being a Carpenter is a job that requires him to have enough, solid and long lasting tools to offer and give the customer satisfaction based on their work. If Freddie doesn’t have enough tools then he could not be efficient and effective with his job.If ever there is an excess money then that’s the time he should add it up for his savings.
4).Freddie is father, and as a father he should be ready and prepare for the educational cost of his children.Freddie became a responsible father to Mia by providing what she needs for School.This needs add up to the expense of the family, since Freddie’s work income is not as big, setting aside 1000 pesos which could have been use to buy house necessities making Freddie budget the remaining money.This 1000 pesos could have been add up to the savings.For Mia’s School supplies Freddie should look cheaper prices of notebooks, shoes,bags to allocate the 1000 pesos more efficiently.
5).Freddie should focus in Saving up for Mia and Noah Education because as they become older their needs and wants differ from time to time.He also should focus on his SSS Contribution to secure benefits for his Family.This goals might affect his monthly budgeting through allocating the money in the right use and expenses.As well as setting aside his current desires or needs for himself and his wife such as buying new clothes , new appliances and going out.
1. Make sure you prioritize your needs before wants. The fact that he has this remaining balance, he has some extra funds that he can use for investing in the future or to cover any unexpected expenses
2. is it essential for freddie to maintain an emergency fund because it can cover unexpected expenses and costs. Based on his current expenses it could be 3,000 and above.
3. Investing some of the remaining balance could help grow his wealth over time through compound interest or asset appreciation
4. Envelop strategies for his over all budget so that he can track his expenses and also he can use the remaining balance if needed
5. Saving for his children so that he is prepared to the upcoming expenses for school. They can also start a small business so that his wife can help him to cover the some of monthly expenses
Bless BSBA – MM C36
1. Based on Freddie’s Income and expenses outlined in the case study, I recommend the budgeting strategies is Set a Financial Goals and Develop your Budgets. Like define your short term and most important is your long term goal. And allocate funds to each category ensuring expenses do not exceed income.
2. Being prepared with an emergency fund gives you the confidence to tackle unexpected events without adding money worries to your emergency. He saved 1000 for emergency fund, and it’s good to save that much.
3.Prioritizing bills and expenses in order of importance lets you meet basic needs, protect your credit, and lower your financial stress. I think he has a good point for prioritizing his tool for his work so he can give a good job in work, but if the tools is still okay, I suggest it to save the money from other priorities like emergency fund, to lessen his bills.
4. Saving for education is important to your child. I suggest that he would use tracking and adjusting expenses.
5. For a long term goals, it would be Saving for Retirement and also investing to secure your family in the future.
1.Budgeting Skills: Based on Freddie’s income and expenses outlined in the case study, what budgeting strategies would you recommend he implement to cover all necessary costs while still saving?
-The Budgeting strategies that I would recommend are Freddie should increase his savings from 1,000 to 1,500 and cut unnecessary expenses. He should track his expenses and adjust his budget monthly.
2.Emergency Fund: Why is it essential for Freddie to maintain an emergency fund? How much should he ideally have saved up based on his current expenses?
– It is essential for Freddie to maintain an emergency fund because it could help if an unforeseen event happens. He should ideally save 4-6 months of living expenses estimated at 44,120-66,180.
3.Financial Priorities: Considering Freddie has limited income after expenses are paid (₱1,970), what financial priorities should he focus on? Should he invest in tools for work or prioritize saving more? Justify your answer.
Freddie should prioritize his emergency fund because it could help if he has a low income because it is inconsistent. He could invest in tools if he is financially stable because it could enhance his earnings. After that he could allocate his savings into investments.
4.Impact of Education Costs: How do Mia’s school supplies impact Freddie’s overall budget? What strategies could he use to manage these costs effectively?
– Mia’s school supplies really impacts Freddie’s overall budget and gives him pressure. The strategies that he could use to manage these cost effectively is to buy during sales and allocate small fund to save to be prepared. Also he should prioritize necessary school items to lessen his expenses.
5.Long-Term Goals: What long-term financial goals should Freddie consider setting for himself and his family? How can these goals influence his current spending habits?
-The long term financial goals that Freddie should consider is his emergency funds that should be enough for 4-6 months of living expenses. Another Financial goal that he should consider is savings for his children education. These goals can influence his current spending by tracking his expenses and prioritize necessary expenses. Also He should plan for long term savings to provide for his family.
1. The strategies that may recommended to Freddie is he must implement the 50/30/20 rule the 50% of income to needs, 30% to wants and 20% to savings. Freddie needs to prioritize his needs over wants. He also need to create a detailed budget so that he can track his spending.
2. It is essential to Freddie to maintain an emergency funds because it provides financial security against unforeseen events and help him avoid debts. Freddie should ideally save 2 to 6 months worth of expenses in his emergency funds. He must aim to save between ₱2000 and ₱6000 with monthly emergency funds of ₱1000.
3. Freddie should focus on prioritize his savings for emergency funds since it is the top priority to protect his family against unforeseen events.
Investing in tools can utilize his money for expanding and improving his materials in his work as a freelance carpentry.
4. Freddie, with his overall budget can be affected by the school supplies cost of ₱1,000 of Mia, to save his money he must create a different budget for school supplies before the start of new academic year. He may also look for a sales or second hand school supplies, in that way he may know how much money he can budget.
5. The long term financial goals that Freddie should consider setting for himself and his family is Education Savings for his Children, Freddie should determine the cost of college education in the future ensuring that his children have access higher education without incurring debts. It influences his current spending by prioritizing on education savings that can encourage him to spend wisely and save more and Freddie shows his children the importance of financial planning.
1. For me is based on the case Study Freddie should track all his expenses to ensure that he’s staying within the budget and he should identify areas where he can save and focus on household needs and adjust expenses.
2. Because freelance work can be unstable,so an emergency fund will help Freddie cover unexpected expenses like emergencies or periods without work.
3.Buying a new or better tools could increase Freddie productivity and enable him to take on high salary or high paying job results to a high income in the long term and lastly he should focusing on both priorities saving but allocate a portion and necessary tools if they will improve his income.
4.Is that Mia school supplies can be significantly impact Freddie budget,leading to Unplanned Expenses,opportunity Cost and disruption of cash flow. To manage cost mia can create dedicated school supplies to her budget.
5. The possible long run or long term goals are build a substantial emergency fund good for 3 to 6 months expenses second is educational fund for his children to cover future schooling cost the third is home renovation fund to improve long conditions lastly Freddie can continue to provide his family to build a better future.
1.Budgeting skills
Freddie needs to improve his budgeting skills by creating a comprehensive monthly budget, identifying cost-cutting opportunities, prioritizing necessities, and using budgeting tools. Establishing a weekly spending cap and regularly reviewing and changing the budget will help him adapt to changes in revenue or expenses.
2.Emergency fund
Freddie needs to have some cash tucked away for emergencies, like a sudden illness or losing his job. It’s like having a safety net. He should aim to save enough to cover 3 to 6 months of his basic bills, which is about ₱33,090 to ₱66,180. This way, if something unexpected happens, his family won’t have to worry about money. He can start building this emergency fund little by little, using some of his remaining money each month.
3.Financial Priorities
Freddie’s got ₱1,970 left, and he’s trying to figure out how to use it wisely. He needs tools for his job to make more money, but saving for his family’s future is just as important. A good plan might be to split the money save ₱970 for the future and spend ₱1,000 on tools. This way, he can take care of his job needs right now and build a strong financial foundation for his family.
4.Impact of Education Costs
Mia’s school supplies are a big expense for Freddie, costing him ₱1,000 every month. This can be tough on his budget, especially with all the other things he has to pay for. To make things easier, Freddie could try buying school supplies in bulk or looking for used ones, which could save him a lot of money. He could also set aside some money each month just for Mia’s education so he’s prepared when those costs come up. By planning ahead for school-related expenses, Freddie can better manage his overall budget.
5. Long-Term Goals
Freddie should think about his family’s long-term financial goals, like owning a home, saving for retirement, and paying for their kids’ education. To achieve these goals, he’ll need to save regularly and maybe even invest some of his money. Having clear goals can help him be more disciplined with his spending today. For example, if he wants to buy a house in the near future, he could put his money into a special savings account just for that. This way, his everyday financial choices are connected to his family’s dreams, making his budgeting feel more meaningful.
1. Budgeting Skills:
Fredie’s income monthly is enough to cover their monthly expenses which leads to a positive outcome. The budgeting strategy I could recommend to Fredie is that he should prioritize first their family’s needs before anything else in which he is doing now. They should not spend below their means if they don’t have enough extra money to avoid financial loss and for them to be able to track and manage their income and expenses neatly for them to be able to save the rest of his income for their future needs.
2. Emergency Fund:
It is essential to Fredie to save for emergency funds given that his children are still young and his work is somehow dangerous. Saving for emergency funds leads to peaceful living because Fredie will be at ease knowing that he has something to get if ever there is an unfortunate event that may happen to their family especially to him. Meanwhile, based on his current income, P1,000 is enough for an emergency fund and it is actually big enough given that his income is not that big, if Fredie can be consistent in saving P1,000 every month and nothing unfortunate happens to their family, this P1,000 together with his SSS contribution can grow into big emergency fund that could help lessen their family’s worry in times of disasters.
3. Financial Priorities:
Fredie has only P1,970 from his income after paying all of their expenses which is still somehow big. If Fredie’s tools are still doing fine and can be strong and sturdy enough to help him get his work done neatly and correctly then he should save the P1,970 and when the time comes that he needs new tools then he could buy immediately because he has the savings for it. It doesn’t mean that he has the means to buy, he should buy new tools especially that his tools are still fine.
4. Impact of Education Cost: Mia’s P1,000 education cost impacts Fredie’s income in a way of allocating just enough of peso to cater the need of Mia in school although Mia is in public school for sure there are still tons of miscellaneous fee and projects. Fredie could use a strategy of budgeting Mia’s school supplies by buying enough things and not to splurge because some school supplies may last up until the end of the school year like a bag, notebooks, shoes, and uniform. With this spending, Fredie could still save some from the P1,000 bill monthly as long as Mia’s educational needs are complete and can last up until the next paycheck of Fredie.
5. Long-term Goals:
The long-term goal Fredie should set for him and his family is that they should have another income like having a sari-sari store with the capital from their savings but they should not put everything from their savings, instead Fredie and his wife should allocate enough money to start their business. Since his wife is staying at home, for sure his wife can manage babysitting their infant baby and at the same time selling at their sari-sari store while their second grader kid is at school. With this, they could have extra income given that working at construction is not consistent, so if Fredie doesn’t have work on specific days, they could still have an income and extra savings from their sari-sari store. And, if they will be consistent in their sari-sari store, they could make this grow and can become a big grocery store and this could result in having their family’s financial stability in the future and with that their spending now can exceed in the future because they have extra income from their sari-sari store.
1. Based on Freddie’s income and expenses, I would recommend that he track all his expenses; this will help him to identify where his money is going each month. Prioritise essential expenses, like food, utilities, and the needs of his children. Regularly review the budget because there’s a chance that there’s a change in income and expenses. Lastly, find an additional source of income, like finding part-time work, so that Freddie’s income would increase and he could cover all of their expenses.
2.Because it provides financial security by acting as a safety net in case of unexpected expenses or emergencies, such as medical bills, home repairs, or sudden job loss. It helps prevent Freddie from falling into debt or financial hardship during challenging times. Based on Freddie’s current expense, a good starting point for his emergency fund would be 3-6 months’ worth of essential expenses.
Calculation:
– Minimum emergency fund: 3 months * ₱7,000 (essential expenses) = ₱21,000
– Ideal emergency fund: 6 months * ₱7,000 (essential expenses) = ₱42,000
By consistently saving for his income, he can build a financial safety net that provides financial stability and helps him navigate life’s uncertainties with greater confidence.
3.Consirdering additional source of income
Finding a way to increase income is essential to achieve long-term financial stability.Such as part-time jobs, or side hustles. Freddie should look for opportunities to increase income. Even small amounts can contribute to building a larger emergency fund and achieving financial goals faster.
4.Freddie should focus on purchasing only the essential school supplies that Robert truly needs for his studies.Freddie can save money by shopping for school supplies at discounted stores, online retailers, or during back-to-school sales.
5.Saving for Retirement: Freddie should start saving for retirement as early as possible. Even small contributions over time can grow significantly due to compounding interest. This will ensure a comfortable lifestyle for him and his family. And a Education Savings for his children,Saving for Robert’s and Noah’s future education, including college or vocational training, can help alleviate financial pressure and provide him with opportunities for a brighter future.
1. Freddie should cut variable expenses, household expenses which currently total a ₱7,000 can be further optimized. Energy-saving habits, such as turning off unused appliances, could help reduce utility bills. Freddie works 20 days a month, but he could explore additional carpentry jobs during his off days or take on small projects like building furniture for sale.
2. Freddie works as a freelance carpenter. His income is not always steady or guaranteed, due to fluctuations in work opportunities or breaks between projects he takes up to earn a living for his family of four which includes two children who rely solely on him financially for their needs such as food and school expenses, among others during challenging times. Sudden medical expenses or unforeseen home repairs could pop up unexpectedly at any moment, in time.Without a safety net for emergencies, in place Freddie might be forced to borrow money. Freddie could save ₱2,000.
3. Managing Savings and Investments: Freddie might think about splitting the money he still has. He may, for example, set aside ₱1,000 for savings and ₱970 for tools.
•Justification: By taking this way, Freddie can invest in his job tools and increase his emergency savings. By doing this on a regular basis, he will improve his capacity to find new jobs as well as his financial stability.
4. Mia could reuse school materials from previous years if they are in good condition. Items like backpacks, pencil cases, or unused notebooks from the previous year could help reduce the expenses.
5. Goal: Establish an education fund for Robert and Noah, especially for high school or college tuition. Impact on his current spending habit. He might allocate a portion of his monthly earnings to this fund, ensuring that at least ₱500 is set aside each month.
1. I’ll recommend track spending or using an envelope method. Tracking his spending will help him to track his everyday expenses and to cut the areas of unnecessary things. Using the envelope method is also a big help, so he can allocate specific amounts for each expense to avoid overspending it.
2. An emergency fund is very important for Freddie and to his family. In case of any unexpected circumstances like hospital/medical bills, short of income, etc., and any sudden expense could force him into debt. Assuming that his monthly income is ₱13,000 and his monthly expenses are ₱11,030 and his remaining balance is ₱1,970, Freddie should save the remaining balance to add in his savings and emergency fund so that he can handle the minor emergencies. He’s remaining balance in a month is ₱1,970; maybe he could save ₱5,910-₱11,820 in 3-6 months. Added his savings and emergency funds to his monthly expenses, which are $1,000, he can add his remaining balance to his savings and emergency fund. In 3 months, he can save ₱8,910.
3. With only ₱1,970 left after paying necessary expenses, Freddie should focus on saving more because, without it, any possible emergencies could force him into financial difficulty. However, investing in his work tools could increase his income; it can be considered, but Freddie must prioritize saving first, then gradually invest in tools.
4. Freddie can purchase and choose the most cheap items for school supplies, and he can also reuse or recycle the last year’s school supplies if they’re still in good condition in order to reduce their expenses.
5. Freddie should consider the long-term goals like homeownership, an educational fund for his children, and building up his savings to provide financial security. These goals can influence Freddie’s current spending by encouraging him to cut unnecessary costs, save diligently, and make strategic investments in his future.
Edaño, Julia A. C36
1. Budgeting skills
I recommend the 50/30/20 as budgeting approach for Freddie for him to effectively manage his income and finances as a freelance carpenter. It is essential for their budgeting since it will help prioritize their needs, wants and savings and also maintain income transformation.
2. Emergency funds
It is essential for Freddie to maintain an emergency funds since it provides a financial security in unexpected cost and also help manage his income. If his method of budgeting is 50/30/20, ideally he will saved up 2600.
3. Financial priorities
It is given that Freddie has only 1,970 left from his income after the expenses, he will focus on building an emergency funds since it will provide him a financial security. Once he established an emergency funds he can considered investing in essential tools especially in his ability to work effectively.
4. Impact on education cost
The school supplies of his daughter Mia can have an impact on his budget, it can limit to ability to save for other expenses. To reduce that, Freddie can create a detailed budget like looking for an affordable price or if he considered to buy a second hand, it will help minimize their expenses.
5. Long-term goals
Freddie should consider setting long-term financial goals such as building an emergency fund, and establishing an education fund for Mia. This long-term goals can help influence his spending and more mindful especially in their family’s financial expenses. It is also help him to build a more secure financial future for himself and his family.
1. I would recommend the 50/30/20 budget method as an ideal budgeting strategy for him. Allocating 50% for his family needs, 30% for wants, and 20% for saving. This method would definitely help him in his monthly budget to cover all the necessary expenses before wants, while he can still save after all the costs.
2. It is essential for Freddie to maintain an emergency fund because, for him, it’s better to have extra funds to cover and avoid debt if ever unexpected events arise in his family, like medical bills, and repairs in the house. Based on his current expenses, saving up 1000 pesos is already an ideal amount and good enough for now.
3. With the remaining money that he has, I believe it’s better that his financial priority should focus on investing tools for work for now. I arrived at this answer based on the conclusion of the case study; it said there he could purchase more new tools that could later lead on to securing more jobs. If he invests his money on that, he could have secure another job, and so income will flow to cover their daily expenses.
4. Mia’s school expenses amount that Freddie’s set aside was 1000 pesos, which added to his monthly expenses that also affect his overall budget or his ability to spend on other things like foods and utilities.
One of the strategies that he could use to manage his child’s education costs is to shop smart. He should look around a shop that offers affordable or even discounted prices of school supplies that are suited to his budget. Also, he should look for a program that offers financial assistance for low-income families.
5. I believe getting an educational plan and life insurance as early as possible would help him and his family in the future. Educational plan for his children so that money would not be a problem for them not being able to go to school. Getting life insurance is one thing to consider too because, as a construction worker, the workers safety is not always sure, so if ever an unexpected event may happen, the family members are secure.
With these 2 long-term goals that will be added to his current spending habits. Freddie’s monthly budget will be affected; he needs to adjust or change his spending habits and weigh things on what’s more important of all expenses mentioned so that he could provide his family enough.
DUARTE, ALEXANDRA JANE A.
C-36
1. I suggest that he should prioritize his needs first and focus on long-term investments as well as insurance. Focusing on short-term investments can only lead him to financial insecurity and the risk of not being able to properly prepare for future expenses and retirement. He should plan for long-term goals such as retirement and his children’s education while also managing his savings because he’s the only one earning for the family.
2. Freddie is the breadwinner of the family, so if something happens, at least his family won’t be burdened because he has insurance. He should at least save 10% of his income for his emergency fund because this way his family has a cushion in case of unexpected expenses.
3. He should prioritize long-term investments that accumulate more wealth. Investing in new tools for more efficient work is a good investment rather than just saving, because new tools may generate more income for Freddie because it makes him work more efficiently, saving him time and effort. Saving money with at least 10% of his income is enough, and he should invest the rest on things that will further acquire him more than he earns.
4. His kids are still young, so Freddie should focus on saving for his children’s future school expenses now more than ever. Because if he saved early on, his money would have more time to grow and be used for tuition and living costs when his kids go to college. In that case, it wouldn’t affect his income that much.
5. He should prioritize saving for his children’s future school expenses as well as emergency funds. Not only that, but he should also invest in assets that will generate income so that he can achieve long-term financial security and stability for his family. Let’s not forget his retirement as well. That is why he should diversify his investments to maintain and acquire financial stability.
Budgeting Skills:
Freddie needs a solid budgeting strategy. He should start by tracking every peso he spends, even small purchases. This will help him identify areas where he can cut back. Next, he should create a budget that allocates his income to different categories like housing, food, transportation, and savings. Prioritizing needs over wants is crucial. For example, while his mobile phone load is important, he could consider a cheaper plan or reducing his usage. Freddie should look for ways to save money on his expenses. He could shop for groceries at cheaper stores, negotiate better rates for utilities, or find discounts on school supplies.
Emergency Fund:
An emergency fund is absolutely essential for Freddie, especially as a freelancer with unpredictable income. If something unexpected happens, like a medical emergency or a job loss, he’ll be able to cover his expenses without going into debt. As for how much he should ideally save, a common recommendation is to aim for 3-6 months’ worth of living expenses. Since Freddie’s monthly expenses are around ₱11,030, he should strive to save between ₱33,090 and ₱66,180. This might seem like a lot, but it’s a crucial step towards financial security for his family.
Financial Priorities:
Freddie has limited income (₱1,970) after expenses, so he needs to be strategic. Investing in new tools could help him earn more, but building a larger emergency fund or saving for his children’s education is also important. I think he should prioritize building his emergency fund first. Once he has a solid emergency fund, he can then consider investing in tools if it makes sense for his business.
Impact of Education Costs:
Mia’s school supplies are a recurring expense, meaning they need to be purchased regularly, especially at the start of each school year. This adds a consistent financial burden on top of his already tight budget. There’s always the possibility of unexpected costs related to school, like field trips, special projects, or even needing to replace lost or damaged items. This can further strain his finances. He should compare prices at different stores, both online and in person, to find the best deals. He could also look for discounts or sales, especially at the beginning of the school year. Freddie could consider buying used textbooks or school supplies from other families or online marketplaces. This can significantly reduce costs.
Long-Term Goals:
Freddie should set long-term financial goals for himself and his family, such as buying a house, saving for retirement, or funding his children’s college education. These goals can influence his current spending habits by motivating him to save more and make smart financial decisions.
Dichosa, Karryle M. C36
1.) The envelope method is a really useful tool for helping Freddie better manage his finances. Using this strategy, he will split his monthly salary into several envelopes, each labeled for a certain category of expenses, such as food, savings, school supplies, and other expenses. He can, for instance, put ₱1,000 in the Savings and Emergency Fund envelope and ₱7,000 in the household expenses envelope. By doing this, Freddie can avoid spending too much in any area and set aside a specific amount of money for each expense. By making sure he sets aside enough for savings and other purposes, this strategy helps him maintain financial discipline and avoid financial deficits. Additionally, he can see exactly where his money is going, which makes it simpler to track and make adjustments as needed.
2.)maintaining an emergency fund is essential since it gives security in case of unforeseen circumstances like urgent medical attention, unplanned house repairs, or times when employment may be interrupted. Without an emergency fund, these unforeseen circumstances can push Freddie into debt or interfere with his capacity to pay for necessities.With a safety net in place, Freddie can deal with these circumstances without having to forgo his family’s necessities, such food or school supplies.Using the 50/30/20 method as a basis, Freddie should ideally save 20% of his monthly income, which is ₱2,600 based on his earnings of ₱13,000.
3.)While purchasing work-related tools may increase Freddie’s efficiency and possibly increase his income, if he doesn’t have enough savings, it shouldn’t be a top priority right away. He may think about allocating a small portion of his leftover money to buy the tools if they are necessary to take on additional work or enhance his services, but only after making sure he has an adequate amount of savings first. Later on, when his finances are more secure, he can buy tools.
4.)The ₱1,000 monthly cost of Mia’s school supplies has a significant impact on Freddie’s monthly budget. He has various options on how to handle these expenses. To prevent impulsive purchases, he should first make a list of the things he will need. Choosing sturdy, reusable things and looking for bargains during back-to-school seasons are two more ways to cut costs. By using these strategies, he can make sure Mia has what she needs for school while also better managing the financial burden of her supplies.
5.)In terms of long-term financial goals, Freddie needs to think about accumulating an emergency fund, putting money aside for his kids’ schooling, making contributions to retirement funds, and purchasing health insurance. Such goals will improve his family’s standard of living and increase financial security. By making these goals his top priorities, Freddie will be able to change his present spending habits by reducing unnecessary spending and creating a budget that sets aside a percentage of his salary for savings. This approach could motivate him to look for other sources of income, which could ultimately provide his family a a more stable financial future.
Budgeting Skills:
– Freddie should track his income and expenses closely to identify spending habits. Implementing a structured budget that prioritizes essential costs while allowing for savings is crucial. He should also look for ways to reduce discretionary spending.
Emergency Fund:
– Maintaining an emergency fund is vital for Freddie to cover unexpected expenses, providing financial security. Ideally, he should aim to save between ₱11,820 and ₱23,640, representing 3-6 months of his living expenses.
Financial Priorities:
– With ₱1,970 left after expenses, Freddie should prioritize building his emergency fund and saving for future needs rather than investing in work tools. Only essential purchases that can directly enhance his income should be considered.
Impact of Education Costs:
– Mia’s school supplies can significantly affect Freddie’s budget. To manage these costs, he can shop for discounts, buy second-hand items, and explore financial aid options available for educational supplies.
Long-Term Goals:
– Freddie should set long-term goals focused on achieving financial stability, securing a comfortable home, and saving for Mia’s education. These goals will guide his current spending habits, encouraging him to prioritize saving and responsible financial decisions.
Budgeting Skills
Freddie can implement several budgeting strategies to cover his necessary costs while saving:
– Track all income and expenses: Freddie should meticulously track all his income sources and expenses. This can be done using a spreadsheet, budgeting app, or a simple notebook.
– Create a budget: Based on his tracked expenses, Freddie should create a detailed budget outlining his income and how he allocates it to different categories. This will help him identify areas where he can cut back.
– Prioritize needs over wants: Freddie should prioritize essential expenses like rent, utilities, food, and transportation over non-essential items like entertainment or dining out.
– Look for ways to save: Freddie can explore ways to save money on his expenses, such as negotiating lower bills, finding cheaper alternatives for groceries, or using public transportation.
– Automate savings: Freddie can set up automatic transfers to his savings account to ensure he saves regularly.
Emergency Fund
An emergency fund is crucial for Freddie as it provides a safety net for unexpected events like job loss, medical emergencies, or car repairs. It helps avoid going into debt or relying on others during challenging situations.
Based on Freddie’s current expenses, he should aim to save at least 3-6 months’ worth of essential expenses, which would be around ₱5,910 – ₱11,820. This amount should cover his rent, utilities, food, and transportation for that period.
Financial Priorities
Freddie’s financial priorities should be:
1. Building an emergency fund: This should be his top priority as it provides a safety net for unexpected events.
2. Covering essential expenses: Freddie needs to ensure he can afford his rent, utilities, food, and transportation.
3. Saving for Mia’s education: Freddie should start saving for Mia’s future education as early as possible.
4. Investing in tools for work: While important, this should be a lower priority compared to the emergency fund and essential expenses. Freddie can explore cost-effective alternatives or find ways to finance the purchase of new tools.
Investing in tools for work can potentially increase his income, but it’s crucial to ensure he can cover his essential needs and build an emergency fund first.
Impact of Education Costs
Mia’s school supplies significantly impact Freddie’s budget, as they represent a considerable expense. Freddie can manage these costs by:
– Shopping around for deals: He can compare prices at different stores and online retailers to find the best deals on supplies.
– Using reusable supplies: Encourage Mia to use reusable items like lunchboxes, water bottles, and pencil cases.
– Taking advantage of school programs: Freddie should check if the school offers any financial assistance programs or discounts on supplies.
– Planning ahead: Freddie can purchase supplies during back-to-school sales or at the end of the school year when prices are lower.
Long-Term Goals
Freddie should consider setting long-term financial goals for himself and his family, such as:
– Retirement planning: Freddie should start saving for retirement as early as possible. Even small contributions can add up significantly over time.
– Homeownership: Freddie can set a goal to purchase a home in the future.
– Mia’s college education: Freddie should continue saving for Mia’s college education.
– Financial independence: Freddie can aim to achieve financial independence, where his income and savings provide a comfortable lifestyle.
These goals can influence Freddie’s current spending habits by encouraging him to prioritize saving and investing. He can make conscious choices to cut back on non-essential expenses and allocate more towards his long-term goals.
Angelica Belandres C37
Budgeting Skills: Freddie should consider reallocating his expenses, if possible reducing non essential costs to increase his savings. He should explore comparison shopping and look for cheaper alternatives for household necessities like food and utilities. He can also start using coupons, discounts, and promos to save more. These could allow him to cover necessary costs, manage his household budget better, and still set aside money for savings each month.
Emergency Fund: Having an emergency fund is important for Freddie, especially with the unpredictability of his freelance income. With his current monthly expenses at ₱11,030, saving around ₱22,000 to ₱33,000 two to three months of expenses would be a realistic goal. This would give him enough to cover unexpected costs, like medical bills or slower work months.
Financial Priorities: With only ₱1,970 left after covering his expenses, i think Freddie should prioritize investing in tools for his carpentry work because it can help him secure more jobs and potentially increase his income. However, he should also set aside some money for emergencies, particularly for health-related expenses. Us Filipinos usually wait until health issues worsen before seeking treatment, so it’s better to prepare in advance. Balancing both investments in tools and savings ensures he can grow his income while protecting his family from unexpected costs.
Impact of Education Costs: Robert’s school supplies definitely add to Freddie’s expenses, but he could look for ways to manage this better, like buying supplies in bulk or taking advantage of school supply sales. Maybe he can also ask around if there are programs or donations that could help cover these costs.
Long-Term Goals:
Freddie should set long-term financial goals like building a larger emergency fund and waving for his children’s education. These goals can help him prioritize his spending, encouraging him to cut unnecessary expenses and focus on essentials. For example, saving for education might lead him to limit discretionary spending. Having clear goals will motivate him to invest in tools and skills that could increase his income, making his financial planning more effective.
1) The budgeting strategies i would recommend to freddie to cover his necessary cost while saving is the envelop system because this envelop are help freddie allocate cash for specific categories in the envelop and Freddie have a system in their budget in that way freddie can manage their expenses very well .
2 )Is it essential to Freddie to maintain their emergency fund for their family because freddie’s dream saving enough to cover unexpected medical bills or repair in their house .Despite the tight budget freddie tries to save 1000 pesos each month for saving and emergencies
3) After computing the income of freddie the financial priorities he consider is to invest in the tools that he use in his work because this tools make the work be more productive and easy to make freddie more income to her family and the rest of the money he made he can save it to their emergency and savings .
4) Mia school supplies have an impact in the income on freddie that’s why he need to budget the expenses in mia school.
The strategies that i recommend to freddie in their school supplies for mia are freddie and her family find a school supplies that have a lowest price or sale in that way can freddie have a lesser expenses in the school supplies of mia and other necessities .
5 ) Freddie need to adopt a long term financial goals to taking provision for her family .Saving is important in freddie and he can manage build a asset that would generate a income for her family .These goals tend to influence his current consumption by encouraging him to save and invest more
1. Base on Freddie income and expences freddie needs to take care of the house hold and his requiremts in school and he prioritize his essential expenses like mobile load, sss,contibution, house hold expenses, school supplies, and savings or emergency fund and he consider reduce her spending and he explore the ways of increasing his income through additional project of carpentry.
2. Maintaing an emergency fund is important for freddie to handle his expences like rapairing the bed or table etc. without fredie compromising his family for financail stability he should aim to save up at least three to six mothns worth of living expenses to his proper protectiong during crisis.
3. With his limited balace of Php 1,970 freddie would fucos in construction workers to build a building and to handle her cercumstances before investing his tools for work. Saving is important for freddie and his family financial stability and to provide for emegency fund that he may arise.
4. Mia school supply would be placed on freddie monthly afodability budget as they involve a repeted expenses which freddie expected amount. To this afftect for freddie the importance of buying during sales for cost afect or employing the community support program of goverment that can provide school supplies for children to less buying the school supply.
5. I think freddie needs to adopt some long term financial goals to taking provision for his children or for his familiy saving impoartant or purchasing the assets that would generate income.These goals tend to influence his current consumption by encouraging him to save and invest more in order to safeguard his dependents’ futures and to become less of a spend.
1.) Begin by listing all of your sources of income and dividing your spending into fixed (such as rent and utilities) and variable (such as entertainment and meals). This makes it easier to see where the money is going and where changes need to be made. Keep an eye on your discretionary spending on things like shopping, entertainment, and eating out. To free up more money for savings, set a monthly limit for each of these areas and adhere to it.
2.) Freddie needs to keep his emergency fund up to date because it acts as a safety net in case of unforeseen costs or loss of income. Should Freddie lack an emergency fund, he could have to depend on high-interest credit choices, which could result in long-term financial difficulties.
3.) If Freddie is in a situation where job security is uncertain or his income is not steady, building a financial cushion should be his primary focus to ensure he can manage any economic downturns without destabilizing his financial situation. With limited disposable income, it’s crucial for Freddie to build or maintain an emergency fund. Prioritizing savings, especially if he doesn’t yet have 2-4 months of living expenses saved, will protect him against unforeseen financial emergencies. This is important for financial security and reducing the risk of needing high-interest debt in case of unexpected expenses. If possible, Freddie could take a balanced approach, allocating a portion of his disposable income towards both savings and investing in tools. For example, if he allocates 70% of the ₱1,970 (₱1,379) to savings and 30% (₱591) to work-related investments, he can gradually build his savings while still making progress on career development.
4.) Purchasing school supplies in bulk or during back-to-school sales can help Freddie save money. He could also look for discounts, promotions, or stores with loyalty programs that offer savings.
5.) Freddie should consider setting long-term financial goals that ensure stability, security, and growth for both himself and his family. These goals can help shape his current spending habits, making them more intentional and aligned with future aspirations. Freddie should prioritize saving a portion of his income consistently to build this fund. It may mean cutting back on non-essential spending to ensure he has enough saved to cover any emergencies.
1.) Begin by listing all of your sources of income and dividing your spending into fixed such as rent and utilities and variable such as entertainment and meals. This makes it easier to see where the money is going and where changes need to be made. Keep an eye on your discretionary spending on things like shopping, entertainment, and eating out. To free up more money for savings, set a monthly limit for each of these areas and adhere to it.
2.) Freddie needs to keep his emergency fund up to date because it acts as a safety net in case of unforeseen costs or loss of income. Should Freddie lack an emergency fund, he could have to depend on high-interest credit choices, which could result in long-term financial difficulties.
3.) If Freddie is in a situation where job security is uncertain or his income is not steady, building a financial cushion should be his primary focus to ensure he can manage any economic downturns without destabilizing his financial situation. With limited disposable income, it’s crucial for Freddie to build or maintain an emergency fund. Prioritizing savings, especially if he doesn’t yet have 2-4 months of living expenses saved, will protect him against unforeseen financial emergencies. This is important for financial security and reducing the risk of needing high interest debt in case of unexpected expenses. If possible, Freddie could take a balanced approach, allocating a portion of his disposable income towards both savings and investing in tools. For example, if he allocates 70% of the ₱1,970 (₱1,379) to savings and 30% (₱591) to work-related investments, he can gradually build his savings while still making progress on career development.
4.) Purchasing school supplies in bulk or during back-to-school sales can help Freddie save money. He could also look for discounts, promotions, or stores with loyalty programs that offer savings.
5.) Freddie should consider setting long-term financial goals that ensure stability, security, and growth for both himself and his family. These goals can help shape his current spending habits, making them more intentional and aligned with future aspirations. Freddie should prioritize saving a portion of his income consistently to build this fund. It may mean cutting back on non-essential spending to ensure he has enough saved to cover any emergencies.
1. Based on Freddie’s income and expenses, he has a monthly income of 13,000 pesos and monthly expenses of 11,030 pesos. In my opinion, a great budgeting strategy to consider is the envelope system. This system allows you to allocate cash for specific categories in separate envelopes, making it easier for Freddie’s wife to manage expenses and save.
2. It’s really important for Freddie to have an emergency fund in place to help his family during unexpected and challenging times. This fund will provide security and peace of mind for his family’s well-being. Freddie has been setting aside 1000 pesos each month to cover his family’s expenses and save for their future.
3. I believe it would be beneficial for him to consider investing in tools while also setting aside some money for savings and an emergency fund. If he allocates 1,970 pesos as follows: 1,000 pesos for investing in a tool, 500 pesos for savings, and 470 pesos for Freddie’s emergency fund, it could help him secure his financial future.
4. Mia’s budget for his son Robert grade two student for buying for notebook, pencil, and other educational necessities. The strategies he employs to effectively manage include implementing a zero-based budget to carefully justify expenses right from the start. These strategies are crucial for managing Robert’s educational needs.
5. Freddie’s primary financial aim for himself and his family is to establish an emergency fund to prepare for unexpected events. Additionally, he is focused on implementing a savings strategy for his children’s education and creating a budget to ensure financial stability for his loved ones. This goal can provide a foundation for improving his spending habits and offer peace of mind, along with financial stability for his family.
(answers only)
1. In the 50/20/30 budget, 50% of your net income should go to your needs, 20% should go to savings, and 30%
should go to your wants. If you’ve read the Essentials of Budgeting, you’re already familiar with the idea of wants and needs. This budget recommends a specific balance for your spending on wants and needs
2.Even if it’s not a trip to the emergency room, you may need it to pay for a medical bill that wasn’t covered by insurance. Having a reserve fund for financial shocks can help you avoid relying on other forms of credit or loans that can turn into debt.
3. One way to do this is to group savings goals by needs, wants, and wishes, in order of importance. Saving for retirement or paying off high-interest credit-card debt will likely be at the top of your list.
4. show that children having school supplies of their own can improve grades, creativity, attitudes towards learning, behavior, peer relationships and self-image
5. Annual financial planning gives you an opportunity to formally review your goals, update them, and review your progress since last year. If you’ve never set goals before, take the opportunity to formulate them so you can get—or stay—on firm financial footing. Here are goals, from near-term to distant, that financial experts recommend setting to help you learn to live comfortably within your means, reduce your money troubles, and save for retirement
Section: C37
1. If I were to recommend a budgeting strategies to freddie, I think he should create a detailed monthly budget where he can track his expenses and income at the same time and where he can consider to seperate his expenses that is categorize to all his needs and emergency funds just like for example phone applications, etc.
2. It is crucial for Freddie to have Emergency Funds for it will serve as his “Financial Safety Net” or his protection from fianancial instability that will cover the cost incase of unexpected expenses arises llike hospital medical bills, home repairs, or even retirement without any delay or hassle. It is much more convenient to have emergency funds to avoid debt and will give him peace of mind that will prevent him to have stress during difficult times. Since he has 1,970 left from his income, he may start saving for his emergency funds with 500 pesos and up. I know that it will take time but then it is much better to save something than nothing.
3. In my opinion Freddie should just save it for building an emergency fund. It is much more important than anything else because EF will be save him from financial instability once he have saved a bigger amount. He can consider investing tools for his work once he has an increased income or saved a lot. He should evaluate the return on investment againts the initil cost and any ongoing expenses. If not with emergency funds he can focus on is children’s future which is through education.
4. It does impact Freddie’s budget especially as she push through her education especially when she get to college. To manage the cost he can encourage mia to borrow materials from their school library or maybe even with public library, seek discounts or any wholesale prices around the area, use the Reuse and Recycling to conserve resources especially if her supplies can still be used for the next school year and maybe ask for governmemt assistance.
5. Freddie should set long term goals like for his Children’s education, or purchasing a home or if they already have their own, investement can help or start a business. These goals can inspire him to be disciplined with hos decisions and prioritize the needs. By creating a clear path of financial pplan he can provide a better life for his family in the future.
1. Here are some simple budgeting strategies:
50/30/20 Rule: Spend 50% of your income on needs (like rent and bills), 30% on wants (like entertainment), and save 20%.
Zero-Based Budgeting: Give every dollar a job. Plan where each dollar goes, whether for expenses or savings.
Envelope System: Use cash for different categories (like groceries and fun). When the cash is gone, stop spending in that category.
Pay Yourself First: Set aside savings right when you get your paycheck. Treat it like a bill you have to pay.
Track Expenses: Write down everything you spend to see where your money goes. This helps you find areas to cut back.
Emergency Fund: Save 3-6 months’ worth of expenses for unexpected costs. Keep it in a separate account.
Review Regularly: Look at your budget often and make changes as needed.
Set Goals: Decide what you want to save for, like a vacation or a car, to stay motivated.
2. 2. Maintaining an emergency fund is essential for Freddie as it provides financial security during unexpected events, such as job loss or sudden expenses. Ideally, he should save 3 to 6 months’ worth of living expenses; for example, if his monthly expenses are $2,000, he should aim for $6,000 to $12,000.
3. 3. Freddie should prioritize building his emergency fund and saving first, as having a financial cushion is crucial for unexpected expenses. Once he has a solid emergency fund, he can then consider investing in tools for work, especially if those tools can lead to increased income or job security. This approach ensures he has stability before taking on potential financial risks.
4. Mia’s school supplies can significantly impact Freddie’s overall budget by adding additional expenses that he must account for each month. To manage these costs effectively, he could:
Create a Separate Budget Category: Allocate a specific amount for school supplies to track spending and avoid overspending in other areas.
Plan Ahead: Purchase supplies in bulk during sales or back-to-school promotions to save money.
Utilize Discounts: Look for discounts, coupons, or second-hand options for school supplies to reduce costs.
Prioritize Needs: Distinguish between essential supplies and non-essentials, focusing on what Mia truly needs for school.
Set Up a Savings Plan: Save a small amount each month specifically for school supplies to spread the cost throughout the year.
5. 5. Freddie should consider setting the following long-term financial goals:
Emergency Fund: Aim to save 3 to 6 months’ worth of living expenses for financial security.
Debt Repayment: Create a plan to pay off any existing debt, which can improve his financial situation over time.
Home Ownership: Save for a down payment on a home to provide stability and potentially build equity.
Education Savings: Set aside funds for Mia’s education to reduce future financial burdens.
Retirement Savings: Contribute to a retirement fund to ensure long-term financial security.
These goals can influence his current spending habits by encouraging him to prioritize essential expenses, limit discretionary spending, and allocate a portion of his income towards savings and investments, ultimately fostering a more disciplined and goal-oriented financial approach.
1. Freddie’s income and expenses over a monthly salary of P13,000.00 has a remainder of P1,970.00. This is already a good position to save while covering all necessary costs. As per recommendation, I would say to keep tracking of all expenses and prioritize the most essential things, which in his case are the utilities, food, and the children. Another is to look for alternative ways to cut costs without compromising the health and safety of the household, like limiting usage of water and electricity, choosing affordable items when buying. Considering he only works a five-days-a-week routine, Freddie may opt for some additional carpentry work during weekends, but not as intensive of a work of course. He could gain additional cash apart from his main job.
2. It is necessary for Freddie to have emergency fund to cover unexpected costs that an uncertain situation delivers. The purpose is to retain financial security during challenging times, like days without works to do since he is only a freelance carpenter. Given that he allocates P1000.00 a month of savings to emergency funds, from January to September of this year, he could have already saved up P9000.00. This emergency fund could cover unexpected medical costs for anyone in the family or for repairs of his tools used in his job.
3. Personally, I would have to recommend implementing a balanced approach. Freddie could allocate 500 as his additional savings. He could allocate 1000 pesos for his tool repairs. The remaining 470 could be utilized by his wife to create a stream of income, like putting up a lumpia business from scratch. While saving, Freddie’s remaining income could grow gradually over a period of time.
4. School supplies expense has an impact of approximately 8 percent in Freddie’s total salary. If you ask me, the children do not need 1000 per month of allocation. I would say 500-600 pesos maximum covers the school supplies, if he knows how to prioritize affordability. Freddie or his wife could opt for discounts or bulk buying to lower costs. This results a P400.00 remainder which may be used for other essential expenses or to be saved.
5. For Freddie’s long-term goals, he may consider investing in his children’s education and retirement fund. The suggestions above like setting up a small and managable business and cutting school expenses could potentially add more in savings in a period of time. Additionally, these goals would allow him to limit non-essential expenses and prioritize the financial and overall safety of the family.
Budgeting skills- As a student, and also providing my own needs. I can recommend to have a small business at home besides his wife is always stay at home. Like a small sari-sari store so that the income from the store they can use it for daily expenses.
Emergency Fund- In his emergency fund he can save a small amount every week or month, so that incase of emergency they can use it for expenses. It’s important to save more if have a chance so that you are prepared for unexpected expenses.
Financial Priorities- For me it’s ok to invest for tools because it can also help him to have a better tools for his safety and for his work. Besides of that tools is important for him for his job without tools he can’t work properly and he have no stable work because he don’t have a enough tools. He can still save again if his work still going and stable.
Impact of education costs- His children is part of his life as a father responsibilty. For his child school needs he can buy school supplies once a year, for the bags they can still use the previous bag if it still good they can re-used it so they can saved money and put it in savings instead or for his child vitamins or other needs.
Long term goals- For long term goals freddie can save as an investment for his children’s education and also for tools that he used daily at work, tools is important for him besides it also provide benefits to his job so he can still sustain the needs of his family.