Do Now: Childcare, Dependent Care, and Furnishings *Answer all questions in complete sentences unless otherwise specified. Please number your responses in your notebook. 1. Who babysat you when you were a child? 2. Who is a dependent? 3. List as many furnishings that you can think of that are in your house.

Childcare, Dependent Care and Furnishings Objective: To understand how much you should budget for childcare, healthcare, and furnishings.

Childcare Activity 88 Do not assume that your parents or relatives will watch your children! Chances are, you will have to pay for childcare. Look at the chart on page 88 in the textbook. Figure out how much it will cost for your family for child care. Add up the total and put in under, “Total Child Care costs” and put it under [8] on Activity 92

Dependent Care Activity 88 If you determined that you are going to care for someone besides your children, you must budget for that. If you aren’t going to have another dependent in your home, it won’t cost you anything.

Furnishings Budget for the Long-Term Furnishings tend to last many years, so replacing them requires you to save for the long-term. A plan for setting aside enough money to pay a large expense at some time in the future.

Long-Term Budgeting for Furnishings You want to save enough money to pay cash when your major appliances wear out. In order to determine when we will need to replace them, we need to know the average lifetime and average price.

Life Expectancy of Our Furnishings Item Present Expected Years to Expected To be set Monthly Age Life Replacement Cost aside Budget Expectancy annually Washing 8 11 3 $370 $123.33 $10.27 Machine TV 3 11 8 $625 $78.12 $6.51 Vacuum 5 15 10 $180 $18 $1.50 Refrigerator 10 16 6 $580 $96.66 $8.05

Furnishings Activity 89 Assume you already have the majority of the furnishings you need. You must set up a monthly budget to replace the items however. How much annually do you think you have to spend? Divide that by 12. Place figure on the, “Furnishing” line [10] and put that figure under [10] on Activity 92.

Movie Time! Bill Cosby, “Economics.”