Direct Approach Memo

DIRECT APPROACH MEMO 1

Institution Affiliation:

Direct approach memo

TO:Rachel MacDonald, Vice President Academic Affairs, SMUSA

FROM:Secretary, SMUSA Board of Directors

14 July, 2015

SUBJECT:HOUSEHOLD SPENDING

Thismemo is a response to your request to have a report analyzing data onhousehold expenditure, which will be relevant to student’snon-tuition expenses. Three main areas were analyzed, which are foodexpenditure, shelter and transportation. Over the past four years,the total food expenditure has maintained a steady figure, withinsignificantly slight increments. Back in 2010, people would spendan average of $7823 on food, and this figure rose to $7980 in 2013.The main subcategories of the food expenditure are food that ispurchased from the stores, and food purchased from the restaurant.When compared, the formers is higher than the latter. Shelterexpenditure is the highest of the three observed expenses, and hasrecorded the highest increment over the past four years. In 2010,people spent an average of $14997 on shelter, which increased to$16387 in 2013. There are two main categories under the shelterexpenses, which are principal accommodation, and others. Theprincipal accommodation includes rented living quarters, owned livingquarters and house-bills. Owned living quarters are more expensivethan rented living quarters.

The final relevant observation was made on transportation costs.Similarly, the transportation costs have record an insignificantincrease over the past four years. In 2010, the averagetransportation cost was $11059, which increased to $12041 in 2013.The main subcategories are private transportation and publictransportation. Of the two, the former is more costly than the later.Below is a graphic analyzing the observations

Thisoffice looks forward to making further communications regarding anyobserved relevant data, and at the same time, would like to keep incontact with your office should you need any further assistance onthe same.

YoursTruly

Secretary,SMUSA Board of Directors.