Name:______________________________

Date:________________________________
Class Period:__________________________

1. Strive to save 10% of your net income. Rent/Mortgage should be no more than 28% of net
income. Your car payment, insurance and gas should be no more than 28%.
2. Calculate what % of net income the following represent: Savings, Fixed, Variable, and
Discretionary, and TOTAL Expenses

Income or Expense Estimated Amount % of Net Income

INCOME $55,320 Lowest 10% of your field in that city you went to college.
go to http://stats.bls.gov/search/ooh.asp?ct=OOH (Occupational Outlook Handbook) and
Gross Monthly Income $4,610 search for a career; look up beginning salary
25% Taxes $1,153 Multiply beginning salary by .25 to find out monthly taxes withheld from each paycheck
NET INCOME $3,458 100% subtract taxes from gross income to find net income

EXPENSES
savings $346 10% You must save 10% of your net income
retirement $150 4% http://money.usnews.com/money/personal-finance/features/calculator
Total Savings $495 14%

Fixed Expenses
Rent should be no more than 28% of net income; www.rent.com, www.apartments. https://spotcrime.com/
Rent (w/ roommate) $687.50 20% com, check to see if utilities are included

www.autotrader.com, www.cars.com, Assume you put 10% down payment; http://www.cars.

Car Payment (CTA PASS) com/go/advice/financing/calc/loanCalc.jsp?mode=full (assume 5 yr/Interest Rate: A-4% B- Enter a picture of your car
6% C-8% D-10% F-20%)
$30 1%
Car payment, insurance and gas should be no more than 28% of net income; estimate
Car Insurance $0 0% $300 biannually for insurance
Find a provider and get a plan that fits your budget. Click on the link to find your planCell
AT&T Verizon Cell Plans
Cell phone $100 3% Phone Plans
http://mappingyourfuture.org/paying/standardcalculator.htm
http://www.practicalmoneyskills.com/resources/financial_calculators/credit_debt/loan_cost http://www.finaid.org/calculators/loanpayments.phtml
Student Loan (what is the going rate of interest) $1,123 32%
Total Fixed Expenses $1,940 56%

Variable Expenses
Electricity or Gas $0 0% Average for a single adolescent.
look up the average cost per gallon and estimate how far you will be driving on a monthly
Gasoline $0 0 basis (miles); may depend on where you plan to live and where you plan to work
Groceries $210 6% Average for a single adolescent.
http://www.practicalmoneyskills.
Lunch $150 4% com/resources/financial_calculators/family_and_life/lunch_tracker
Car Repairs/Maintenance $0 0 What is the cost of an oil change?
Laundry/Dry Cleaning $0 0 Average for a single adolescent.
Total Variable Expenses $360 10%

Discretionary Expenses Must choose eight (8) of the following

Books, Magazines, I-Tunes, Apps $0 Sports Illustrated, GQ, People,
Personal Grooming $18 1% Find out how much it cost to get your hair done or cut
Clothes $80 2% Gap, Aerostposle, American Eagle, Champs, Etc
Charitable Contributions $0 0 Church tithes usually 10%, United Way,
Gifts $100 3% Birthdays, Anniversary, Weddings, graduations
Health Club Membership $0 0 Ballys, LifeFitness, Xsport, L.A. Fitness
Eating Out $50 2% McDonalds, Burger King, Pizza Hut, White Castles, Applebees, Outback, etc
Movies and Videos Blockbuster, Netflix, Movie Theater, On Demand
Sports (40 for 1 year) $3 0% Club Sports, softball team, flag football, basketball league, etc
Concerts and Plays $75 2%
Vacations $250 7% Great America, Wisconsin Dells, Florida, Cancun, etc
Cable/Internet Access $0 0% Comcast, Direct TV, Dish Network, Verizon Wireless & etc.
Pets $40 1% How much is that going to cost you?
Total Discretionary Expenses $616 17%
TOTAL EXPENSES $2,916 98%

NET INCOME $3,458 100% Copy net income to here

TOTAL EXPENSES $3,411 98% Add up Savings, Fixed Expenses, Variable Expenses, and Discretionary Expenses
BUDGET SURPLUS OR DEFICIT $46 2% Subtract Total Expenses from Net Income