Sammy makes $2,362 per month as a baseball coach. He is creating a budget and has created the following chart to allocate his monthly paycheck to different accounts.
The Correct Answer and Explanation is:
To determine if Sammy has properly allocated his entire monthly paycheck of $2,362, we need to sum all the values shown in the pie chart.
The allocations shown are:
- $708.6
- $472.4
- $354.3
- $354.3
- $236.2
- $236.2
Let’s add them up: 708.6+472.4+354.3+354.3+236.2+236.2=2,362708.6 + 472.4 + 354.3 + 354.3 + 236.2 + 236.2 = 2,362
✅ Correct Total: $2,362
✅ Correct Answer:
Yes, Sammy has correctly allocated his full monthly paycheck.
💬 Explanation:
Budgeting is a vital financial planning tool that helps individuals manage their income effectively and meet both their short-term and long-term financial goals. In Sammy’s case, he earns $2,362 per month as a baseball coach. To ensure he doesn’t overspend or underutilize his earnings, Sammy created a pie chart that divides his income into several categories.
Each slice of the pie chart represents a portion of his income designated for a specific purpose—such as housing, transportation, savings, food, entertainment, or miscellaneous expenses. When we examine the individual allocations—$708.6, $472.4, $354.3, $354.3, $236.2, and $236.2—and add them together, the total comes out to exactly $2,362. This means Sammy has accounted for every dollar of his paycheck in his budget.
This kind of zero-based budgeting—where every dollar is assigned a job—is an effective method for financial control. It ensures that no money is left unplanned, which reduces the risk of impulsive spending and increases savings potential. It also helps Sammy evaluate where his money is going and make adjustments if needed—for example, if he wants to save more or cut back on non-essential spending.
In conclusion, Sammy has successfully distributed his entire monthly income across his various needs and priorities. This disciplined approach demonstrates responsible financial behavior and is a practical step toward long-term financial stability.
