A case study will usually start with a presentation of information about a situation followed by questions either about this information or about the effects of changes to the situation.
Jim is employed as an apprentice chef. He is in his third year of his apprenticeship. His salary is . He owns a car and stays with his parents in the family home. He travels 50 miles a day to his work (there and back). His monthly budget is shown thus:
|Contribution to family expenses|
Calculate Jim's total expenditure and compare it to his income.
Jim's budget plan shows that his planned expenditure is less than his monthly income. The actual amount is .
(Jim keeps this money in his bank account each month and can use it if an unexpected expense occurs.)
Jim is expecting his monthly salary to increase to as he enters the final year of his apprenticeship. He is also planning to leave home and flat share.
His new home will be within walking distance of his place of employment. His contribution to the monthly rent will be . This is inclusive of gas and electricity bills as well as council tax.
Jim has to review his budget plan.
Jim realises that even without considering his increase in income that he can afford the monthly rent if he did not own a car.
His car expenditure totals which is more than the amount he needs for rent. However Jim is hoping to keep his car when he moves home. He therefore looks more closely at his 'new' monthly budget.
What effect does this further information have on his expenditure?
Jim's budget plan shows that his planned expenditure is more than his monthly income.
The actual amount is
However he realises that a few further changes to his budget would allow him to make this move.
In your opinion, what other changes could Jim make to his budget which would allow him to keep his car and still make this move?
There is no fixed answer to this question. You should make a few reasonable suggestions to contribute to the required saving.
He could make a saving of by: