ECON1010 Taking Charge of Your Economic Future Name:

Unit 4 Touchstone Template Date:

MONTH 1 BUDGET MONTH 2 BUDGET

Amount Percent Amount
Income $5,000 100% Income $5,100
Expenditure Expenditure
Housing $950 19% Housing $950
Food $1,000 20% Food $1,000
Transportation $300 6% Transportation $300
Education $350 7% Education $350
Utilities $400 8% Utilities $100
Taxes $450 9% Taxes $450
Health Care $350 7% Health Care $750
Family Care $500 10% Family Care $500
Miscellaneous $260 5% Miscellaneous $160
Savings $440 9% Savings $540
Total $5,000 100% Total $5,100

PART 1: ANALYZING YOUR PERSONAL FINANCES

SCENARIO: Your monthly budget is going through some changes over the next three months. The good news is that your incom
has increased because of your strong performance at work. However, health care and miscellaneous costs have also gone up.
will need to reallocate your monthly budget based on these changes. The changes are represented by embedded formulas in
MONTHLY BUDGET tables above, located inside the shaded cells.

STEP 1: Enter the previous values you obtained from the Unit 2 Touchstone into the MONTH 1 BUDGET. Important: Before yo
be sure to divide each dollar amount by 12. Remember, the Unit 2 Touchstone was an annual basis while this Touchstone is a
monthly basis. If you no longer have the previous values, create new ones. Remember to start by entering your income and be
sure the MONTH 1 BUDGET balances.

STEP 2: Now create your MONTH 2 BUDGET and your MONTH 3 BUDGET above. Do not change the predetermined costs for
Health Care in the second month or Miscellaneous in the third month. Do not modify the income in either month. Remember
your monthly income must equal your monthly expenditures (including savings). Look ahead to step 3 to see how you can use
formulas for proper balancing.
STEP 3: Your MONTH 2 BUDGET and your MONTH 3 BUDGET may or may not be balanced. To check, do the following:
• Enter a formula to calculate your total expenditures. Adjust your expenditures until the total equals your monthly income.
• Next, enter formulas in the percent column to calculate each expenditure as a percentage of the total expenditure.

STEP 4: Using the tools in Excel, make a graph for each of the three budgets to show your spending allocation. You may use a p
chart, column chart, bar chart, or some other graph type. Review the tutorial in Unit 1 called Data Visualization if you need a
refresher on graphing. If your embedded graphs block your view, move them off the work area, either downward or to the rig

STEP 5: Fill in the table for SAVINGS PROGRESS located at the top right of this spreadsheet:
• Enter your monthly savings from steps 1-4. The cumulative savings column will calculate automatically.
• Recall your total savings goal from the Unit 2 Touchstone. In the last column, record how much more money you need to sa
order to reach your goal.
• If you can't recall your savings goal, create a new one so you're able to complete the table.

STEP 6: Using the tools in Excel, make a graph that shows your incremental progress toward your savings goal based on the da
the SAVINGS PROGRESS table:
• Select a graph type that best illustrates your progress. Move the graph off the work area if it obstructs your view.
• Finally, using steps 1-6 as a reference, complete the REFLECTION QUESTIONS on the right side of this spreadsheet.

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DGET MONTH 3 BUDGET SAVINGS P
Percent Amount Percent
100% Income $5,200 100%
Expenditure Month 1
19% Housing $950 18% Month 2
20% Food $1,000 19% Month 3
6% Transportation $300 6%
7% Education $350 7%
2% Utilities $100 2%
9% Taxes $450 9%
15% Health Care $750 14% Note:
10% Family Care $400 8% To increase the height of a row, hover o
the far left margin until your cursor bec
3% Miscellaneous $260 5% and drag the bottom border to the desi
11% Savings $640 12% you can use the shortcut Ctrl + Z to und
100% Total $5,200 100%

PART 2: REFLECTION QUESTIONS

ood news is that your income QUESTION 1: In step 4 and step 6, you created several
s costs have also gone up. You graphs. Explain the reasons for the graph types that you
by embedded formulas in the selected. How will the graphs you created help readers
understand the financial data?

GET. Important: Before you do,
while this Touchstone is a
tering your income and be
QUESTION 2: Explain the results of your financial analysis in
steps 1-6 in terms of the following:
• Overall progress toward your savings goals
• Changes you might make to the budget to improve
progress in the coming months
• Economic or life impacts that may affect your budget in
the future

predetermined costs for QUESTION 3: Assume that your income continues to grow,
either month. Remember that but consumer prices also rise due to inflation. Determine
3 to see how you can use how economic factors like these might affect your financial
analysis one year from now:

A. What economic trends might you need to account for

when making a one-year projection?
B. How might you plan for unexpected expenses when
making a one-year projection?
 , do the following:
als your monthly income.
otal expenditure.

allocation. You may use a pie

sualization if you need a
er downward or to the right.

cally.
ore money you need to save in

vings goal based on the data in

ucts your view.

his spreadsheet.
 SAVINGS PROGRESS
3 Month budget analysis
Monthly Savings Cumulative Savings $ to Reach Goal $1,200

$440 $440 $1,360 $1,000

$540 $980 $820 $800
$640 $1,620 $180 $600
$400
$200
$0
in
g od on on es xe
s re
us Fo ti ti iti Ta Ca
o rta ca til lth
H
sp
o
E du U a
To increase the height of a row, hover over the bottom border of that row in an He Fa
the far left margin until your cursor becomes and up-down arrow. Then click Tr
and drag the bottom border to the desired row height. If you make an error,
you can use the shortcut Ctrl + Z to undo it. MONTH 1 BUDGET MONTH 2 BUDGET MON

Savings Progress
ART 2: REFLECTION QUESTIONS
Your Answer (150 words or less): $1,600
The graphs give a visual representation of the monthly forecas. In $1,400 $1,360
addition, the plan provides a basis of easily conducting an analysis
between two or more variables and assessing the impact of $1,200
reducing or increasing any of the variable. The graph will me in $1,000
providing a summarised detailed analysis of my forecast $820
Savings

expenditure $800
Your Answerand (150income
words at
or aless):
glance. That notwithstanding, the $640
$600 $540
I planned to save at least $440 a month. The savings will in the long $440
ru provide me with an opportunity pay for my first mortgage $400
deposit in the coming three years. The increase in salary will provide $180
me with an opportunity to increase my saving and reach my target $200
savings faster. However due to increasing health care expendinture $0
I will have to cut down on non-essential spending such as Month 1 Month 2 Month 3
miscellenous spendings and utilities in order to create room for Month
health care expenditure. The economic or life impacts will require
me to deposit my savings into current account where I can easily
Your Answer (150 words or less):
Economic impacts and shocks such as the one caused by the
pandemic have a negative impact on my spending. A rise in the
rate of inflation reduces my spending power by reducing my real
income. In addition, an increase interest rate will have an impact on
my mortgage by increasing the monthly payments made.
A. While making a one year projection I might need to account for
factors such as inflation, interest rates and time value for money.

B. I will plan for unexpectes expenses by setting up a contigency

fund which will allow me to draw from it in cases of emergency. In
addition, I can invest in market securities that are easily liquid such
as shares and bonds.
onth budget analysis

tio
n es xe
s re ar
e
ou
s gs
iti Ta Ca yC e in
U til lth il l an S a v
a m el
He Fa isc
M

MONTH 2 BUDGET MONTH 3 BUDGET

Savings Progress

$820
Monthly Savings
$640 $ to Reach Goal
$540

$180

Month 2 Month 3
Month