Personal Budget Survival Project

A budget is a careful plan for adjusting expenses to the income that is expected during a certain period

This activity has been set up in order for you to get a better feel for personal and family budgeting and decision-making. The project will illustrate how low-income, middle-income, and high-income families in central Minnesota are able to budget, make decisions, and make ends meet. As part of this project you will be assigned a job, family, or personal situation, as well as living quarters. You may be assigned a spouse, sibling, or housemate, or you may be asked to determine your budget as a single person or parent.

You will probably need to have a calculator for some of the calculations asked of you. You may also want to consult your family as to how they budget their resources, as well as utilize print material and advertising of all kinds.

It is your task to first get a feel for your monthly “net income” and your monthly expenses. You must research any change in your status or situation and the proper documentation for this change must be provided as part of the assignment.

You will be creating a visual presentation of your project explaining “who” you are and your situation as well as how you have handled your situation and budgeted accordingly.

Attached worksheets:

_____ Cover Sheet (everyone must fill out)

_____ Personal Budget Worksheet (every worker in the family MUST fill one out)

_____ Monthly Expenses Worksheet (every family MUST fill out)

NOTE: keep track of changes on additional forms if needed

_____ Large Purchase Worksheet (filled out for large purchases over $100 such as: car, computer, boat, house, motorcycle, etc.)

_____ Large Expenses Worksheet (filled out for large expenses over $100 such as

medical, funeral, vacation, etc).

Personal Budget Survival Project

Cover Sheet

Name: _______________________________________________________

Period: ___________________

Partner: ______________________________________________________

Describe your situation:

How much money do you as an individual make per year?

____________________ (Net Monthly Income X 12 months)

How much does your household make in a year?

____________________ (everyone in your household)

Were you able to create a budge that balanced? ___________________

How much was left over per month? ___________________________

What will you do with the extra money?

Do you consider yourself low-income, middle-income, or high-income household? Why?

Personal Budget Worksheet

My assigned career is ___________________________________________

My annual (year-long) salary is ________________________________________

Annual Salary: ____________ ¸ 12 (month in a year) = _____________(monthly income)

Monthly Income: ____________¸ 2 (weeks) = ___________________ (paycheck)

Paycheck: _____________________ X 4% (Federal tax) = ___________________ (tax 1)

Paycheck: _____________________ X 2.6% (Minnesota tax) = _______________ (tax 2)

Paycheck: _____________________ X 7.65% (Social Securiity) = ______________ (SS)

Tax 1: __________ + Tax 2: __________ + SS: ___________ = ______________ (taxes)

Paycheck: ________________________ - Taxes = ___________________ (Net Income)

Net Income: ______________ X 2 (paychecks) = _____________ (Net Monthly Income)

My Net Monthly Income is: _________________________________

NOTES:

CHANGES (if necessary):

My NEW career is ___________________________________________

My annual (year-long) salary is ________________________________________

Annual Salary: ____________ ¸ 12 (month in a year) = _____________(monthly income)

Monthly Income: ____________¸ 2 (weeks) = ___________________ (paycheck)

Paycheck: ______________________ X 4% (Federal tax) = ________________ (tax 1)

Paycheck: ____________________ X 2.6% (Minnesota tax) = _______________ (tax 2)

Paycheck: ____________________ X 7.65% (Social Securiity) = ______________ (SS)

Tax 1: __________ + Tax 2: __________ + SS: ___________ = ______________ (taxes)

Paycheck: ________________________ - Taxes = ___________________ (Net Income)

Net Income: _______________ X 2 (paychecks) = _____________ (Net Monthly Income)

My Net Monthly Income is: _________________________________

NOTE: To figure out an annual salary from a monthly or hourly salary….

Hourly Wage: _______________________ X 40 (hours per week) = ______________ (weekly income)

Weekly Income: ______________________ X 52 (weeks in a year) = _____________ (annual salary)

Hourly Wage: ________ X 20 (hours per week) = ________(PART TIME weekly income)

Weekly Income: ______ X 52 (weeks in a year) = _________(annual salary)

Projected Family Monthly Expenses Worksheet

Housing and Utilities:

Rent (apartment living): ____________________

Mortgage Payment (if you live in a house) ____________________

Natural Gas (average per month) ____________________

Water/Sewer (average per month) ____________________

Electric (average per month) ____________________

Phone (basic local service) ____________________

Car:

Car Payment ____________________

Car Insurance (monthly) ____________________

Gasoline and Maintenance ____________________

Household and Food

Food ____________________

Toiletries ____________________

Household ____________________

Luxury Items:

Cable ____________________

Cell Phone ____________________

Long Distance Phone Service ____________________

Entertainment ____________________

Internet ____________________

Other:

Clothing ____________________

Medical Insurance (if available) ____________________

Day Care (if necessary) ____________________

Public Transportation ____________________

(turn over)

Miscellaneous (you must explain)

____________________

Savings ____________________

Total Monthly Expenses = ____________________

Monthly Net Income: __________ - Total Monthly Expenses = _________________

HOW MUCH DID YOU HAVE LEFT OVER? DO YOU HAVE TO REFIGURE?

Price Chart

NOTE: If you can find “a better deal” you must provide the proof (i.e.; a newspaper clipping, brochure, or ad). Be sure to read the fine print!

Car Insurance: male ages 16-25 $359.23 / 6 months

Female ages 16-25 $327.67 / 6 months

male ages 26-64 $286.94 / 6months

female ages 26-64 $268.49 / 6 months

male ages 65+ $359.23 / 6 months

female ages 65 + $327.67 / 6 months

NOTE: If you get any tickets or are in an accident (whether it’s your fault or not),

ADD $80 to your 6-month policy

Medical and Dental Insurance:

(only if specifically available at work – only the worker if single):

Family $4740/ year

Single $3012 / year

IF you do not get insurance at work but want to purchase it:

Family $9480 / year

Single $6024 / year

Car, Boat, Motorcycle, etc. Payment:

Take the total amount of the purchase, calculate 15%, and then divide it by 36months (3 years). That is your monthly payment. If I give you a car, it will have your monthly payment listed.

Gasoline and Maintenance of Car:

In town = $10 / week

To commute to the Cities = $20 / week

Phone (land)

Local service only = $ 312 / year

Long distance assume $0.15 / minute

Public Transportation (Bus)

$14 / calendar week

Natural Gas (see attached sheet)

Day Care:

$200 / week per child

Apartments in St. Cloud: ©*efficiency $3600 / year

*None of these apartments have washer and dyer.

Laundry matte $200 / year for family

$100 / year for single

House $ 10800 / year

Mortgage on a New Home:

Take the total amount of the purchase, calculate 15%, and then divide it by 120 months (10 years). That is your monthly payment. If I give you a house, it will have your mortgage payment listed.

Also take the amount of the house and calculate 10%. This is your property tax and it must be added onto the expense sheet under Miscellaneous.

Water/Sewer: $300 / year

Electric: Apartment $300 / year

House $1870 / year

Natural Gas: Apartment $324 / year

House $1680 / year

Other: Live in Nurse $300 / week Braces $1500

Physician office visit $75 Car repairs $150

X-Rays and other tests $300/ per test Plumber $100 / hour

Hospital stay $300 / day Hotel $75 / night

Motel $35 / night

IMPORTANT: Items that you must research in order to obtain:

· Cell phone

· Cable

· Internet access (if you have a computer)

NOTE: Any borrowing of funds or legal issues must be cleared through the judge and jury (Ms. Ernest).
Large Purchase Worksheet

What did you buy? _________________________________________________________

Where did you buy it? ______________________________________________________

What did it cost? ______________________________

How did you buy it? ___________________________

What do you pay per month? _____________________

Describe the item or attach written proof.

What did you buy? _________________________________________________________

Where did you buy it? ______________________________________________________

What did it cost? ______________________________

How did you buy it? ___________________________

What do you pay per month? _____________________

Describe the item or attach written proof.

Large Expense Worksheet

What did you buy? _________________________________________________________

Where did you buy it? ______________________________________________________

What did it cost? ______________________________

How did you buy it? ___________________________

Are you able to afford it? ______________

Why do you need it? _______________________________________________________

_______________________________________________________________________

Describe the item or attach written proof.

What did you buy? _________________________________________________________

Where did you buy it? ______________________________________________________

What did it cost? ______________________________

How did you buy it? ___________________________

Are you able to afford it? ______________

Why do you need it? _______________________________________________________

_______________________________________________________________________

Describe the item or attach written proof.