Introduction
The MacDonald family had a very well planned out and stable budget plan. One day, unexpectedly, Courtney MacDonald has lost her spouse due to a diving accident and it is now her responsibility to keep the family budget as stable at it was previously. Some of these responsibilities will include; compensating for the loss of income, revising their previous budget plan and continuing to plan for the unexpected future. Luckily, she and Ryan had planned ahead and she will receive benefits from the Canadian Pension Plan and her RRSP to ensure that she can make her ends meet.
Payments
The MacDonald family will receive a CPP death benefit in order to pay for Ryan’s funeral. This benefit will be paid as a lump sum, which means that …show more content…
First of all, one of the most costly fixed expenses for any family is mortgage, and luckily Ryan’s life insurance ensures that when he dies that his mortgage will be paid off in full, so Courtney will no longer have to worry about this.
On the other hand, there will have to be an increase of money in certain areas of variable expenses. Primarily, Courtney will have to put more money aside for Car and House maintenance/repairs, this is because Ryan used to do majority of this work himself, and now Courtney will have to pay someone to do it for her. One of the most costly changes in Courtney’s new family budget will be the funeral expense. This is costly because an average funeral costs $7,000, and Courtney only has $2,500 from the lump-sum benefit, so she will have to account for the rest of the amount in order to pay for Ryan’s funeral.
Planning for an Expected …show more content…
This is because older children tend to stay awake for longer and more hours, which requires more lights and electricity. Also, as children grow up and become physically active they typically take longer and more frequent showers, which will increase the current water bill. Currently, Courtney’s children are small are not very expensive to care for. As they grow, they will need a larger portion of the family budget, and Courtney will have to alter the budget as they grow to manage this.
Conclusion
To conclude, the death of Ryan is a huge loss for the MacDonald family, but because of Ryan’s planning ahead, the MacDonald family will be able to comfortably live under these new standards. With the help of Ryan’s life insurance and CPP benefits, Courtney and her family will be able to live with very minimal change to their expenses. Courtney will have to continue to revise and create budgets as more unexpected events occur and variables change, but if she continues to plan ahead and maintain a stable budget she will do just
The MacDonald family had a very well planned out and stable budget plan. One day, unexpectedly, Courtney MacDonald has lost her spouse due to a diving accident and it is now her responsibility to keep the family budget as stable at it was previously. Some of these responsibilities will include; compensating for the loss of income, revising their previous budget plan and continuing to plan for the unexpected future. Luckily, she and Ryan had planned ahead and she will receive benefits from the Canadian Pension Plan and her RRSP to ensure that she can make her ends meet.
Payments
The MacDonald family will receive a CPP death benefit in order to pay for Ryan’s funeral. This benefit will be paid as a lump sum, which means that …show more content…
First of all, one of the most costly fixed expenses for any family is mortgage, and luckily Ryan’s life insurance ensures that when he dies that his mortgage will be paid off in full, so Courtney will no longer have to worry about this.
On the other hand, there will have to be an increase of money in certain areas of variable expenses. Primarily, Courtney will have to put more money aside for Car and House maintenance/repairs, this is because Ryan used to do majority of this work himself, and now Courtney will have to pay someone to do it for her. One of the most costly changes in Courtney’s new family budget will be the funeral expense. This is costly because an average funeral costs $7,000, and Courtney only has $2,500 from the lump-sum benefit, so she will have to account for the rest of the amount in order to pay for Ryan’s funeral.
Planning for an Expected …show more content…
This is because older children tend to stay awake for longer and more hours, which requires more lights and electricity. Also, as children grow up and become physically active they typically take longer and more frequent showers, which will increase the current water bill. Currently, Courtney’s children are small are not very expensive to care for. As they grow, they will need a larger portion of the family budget, and Courtney will have to alter the budget as they grow to manage this.
Conclusion
To conclude, the death of Ryan is a huge loss for the MacDonald family, but because of Ryan’s planning ahead, the MacDonald family will be able to comfortably live under these new standards. With the help of Ryan’s life insurance and CPP benefits, Courtney and her family will be able to live with very minimal change to their expenses. Courtney will have to continue to revise and create budgets as more unexpected events occur and variables change, but if she continues to plan ahead and maintain a stable budget she will do just