Law and Poverty
Fall 2008
Glesner Fines
Problem Prepare a Written Budget to Turn in
Next Class
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Diane Johnson is a 28 year old woman who has two children,
John, 5, and Alicia, 3. Diane’s marriage
ended soon after her mobile home in
After high school, Diane went to her local community
college for one semester and worked part-time in a grocery store at a little
over minimum wage. When she got married,
she dropped out of school and continued to work part time until her son John
was born. Just when she planned to
return to work, she became pregnant with Alicia. After Alicia was born, Diane did not seek
work outside the home for slightly more than one year. Since moving to
Diane is accustomed to living modestly but she is unsure
how she will be able to make ends meet once she has a home to pay for. She believes she may have to apply for
various types of assistance, but has not yet done so.
Find Diane a job in
Calculate Diane’s budget without food
stamps, welfare, housing assistance, medical assistance, or other public
financial assistance. As sources of
information, use the newspaper, the yellow pages, social service agencies, and
your own (and your friends’) knowledge of this area. Determine her approximate take home pay after
taxes. Investigate her monthly costs for
rent and child care. What type of
housing will she be able to rent? What
will the deposit be? How many bedrooms
will she need? (Be sure to consider
landlord policies, housing codes, and your own good sense.) Are there subsidized child care centers she
can use (and, if so, how long a waiting period exists before her children can
enter)? How much will private child care
cost (either at a day care center or in-home child care providers)? How will this change next year, when John is
old enough for kindergarten, assuming he qualifies for on-site child care after
school? Find out what her approximate
costs for basic utilities will be.
Determine how much Diane must spend on food, transportation, clothing,
and other necessities for herself and her children.
Here are some resources to get you started:
Thanks to Professor Quigley
of Loyola New Orleans for the problem template.