ACTIVITY No. 1 – FAMILY WANG
Mr. Wang works in a private company earning P95,000 a month, net of all salary deductions. He
lives with his wife and 3 children in a modest townhouse in one of the subdivisions in the City. He is the
only breadwinner of the family as his wife takes care of their 3 children - aged 17, 12 and 5 years old.
The two children just graduated from the public schools near them – one in senior high school and
one in the elementary. The eldest child is about to enroll in college and wishes to pursue a course offered
only in a private institution in the entire province. The tuition and miscellaneous fees for the first
semester is about P25,000 and the needed initial school supplies, including textbooks, will amount to
P5,000. Mr. Wang will need to shell out P30,000 for his child’s enrollment in college, not including the
purchase of a new laptop worth another P36,000. The youngest is about to enroll in pre-school and he
needs to budget P4,000 a month, paying one month’s fee upon enrollment.
The P95,000 he earns monthly is just enough to pay for the family’s monthly expenses. The
details of his monthly expenditures are as follow:
Food and household supplies
Electricity
Water
Communications
Gasoline, oil and transportation
Repairs and maintenance
Gym membership
Medicines and supplements
Clothing, apparel and other supplies
Car amortization (last 12 months)
Home amortization (for the next 8 years)
Entertainment
Student allowances
Insurance
Other expenses
P
P
25,000
5,000
1,000
5,000
4,000
3,000
3,000
3,000
3,000
15,000
10,000
2,000
6,000
5,000
3,000
93,000
A sickness in the family depleted the family savings. Aside from their home, car, computers, appliances,
and home furnishings, the remaining assets of the family are as follows:
Cash on hand
Cash in bank
Jewelries
Insurance – Cash Surrender Value
Time deposits
P
5,000
20,000
30,000
25,000
100,000
P 180,000
With only P2,000 excess cash per month from his salary after family expenditure, and the cash available of
P25,000, how can Mr. Wang pay for his children’s upcoming enrollment amounting to about P70,000?