Susan Wong's Budget
Running head: Budget Model
Personal Budget Model for Susan Wong
| |
|Final term paper for MAT 540 |
|Quantitative Methods |
Introduction
Section I: Problem Description
Susan Wong graduated from State University and was hired by a computer firm in the Washington, D.C. area. In college, her parents provided money for Susan’s gas, telephone, and credit cards. Susan’s mother and father created a bank account to address her financial needs. Susan never had to be concerned about health, car, life, homeowners’ insurance; utilities; driver’s license and car license; magazine subscriptions; and other financial matters. As a student, Susan did not spend more that her monthly allotment, but she was not prepared to manage staggered bill payments common to working adults (Taylor, 2004). “In some months Susan’s bills would be modest and she would spend accordingly, only to be confronted the next month with a large insurance premium, or a bill for property tax on her condominium, or a large for credit card bill, or a bill for a magazine subscription, and so on the next month. Such unexpected expenditures will result in months when she could not balance her checking account; she would have top pay her bills with her bankcard and then pay off her accumulated debt in installments while incurring high interest charges. By the end of her first year out of school she had hoped to have some money saved to begin an investment program, but instead she found herself in debt (Taylor, 2004, p. 378).” Frustrated by her situation, Susan decided to get her finances in order. She sold her
Personal Budget Model for Susan Wong
| |
|Final term paper for MAT 540 |
|Quantitative Methods |
Introduction
Section I: Problem Description
Susan Wong graduated from State University and was hired by a computer firm in the Washington, D.C. area. In college, her parents provided money for Susan’s gas, telephone, and credit cards. Susan’s mother and father created a bank account to address her financial needs. Susan never had to be concerned about health, car, life, homeowners’ insurance; utilities; driver’s license and car license; magazine subscriptions; and other financial matters. As a student, Susan did not spend more that her monthly allotment, but she was not prepared to manage staggered bill payments common to working adults (Taylor, 2004). “In some months Susan’s bills would be modest and she would spend accordingly, only to be confronted the next month with a large insurance premium, or a bill for property tax on her condominium, or a large for credit card bill, or a bill for a magazine subscription, and so on the next month. Such unexpected expenditures will result in months when she could not balance her checking account; she would have top pay her bills with her bankcard and then pay off her accumulated debt in installments while incurring high interest charges. By the end of her first year out of school she had hoped to have some money saved to begin an investment program, but instead she found herself in debt (Taylor, 2004, p. 378).” Frustrated by her situation, Susan decided to get her finances in order. She sold her