Name: Cali Sullivan

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
INCOME

Estimated Amount
% of Net Income
$55,000

Gross Monthly Income

$4,583

25% Taxes
NET INCOME

$1,146
$3,437

EXPENSES
Total Savings

go to http://stats.bls.gov/search/ooh.asp?ct=OOH (Occupational Outlook

Handbook) and search for a career; look up beginning salary
Multiply beginning salary by .25 to find out monthly taxes withheld from each
paycheck
subtract taxes from gross income to find net income

$344

10% You must save 10% of your net income

$750

Rent should be no more than 28% of net income; www.rent.com, www.

21% apartments.com, check to see if utilities are included

Fixed Expenses
Rent

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

//www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full (assume 5
yr/Interest Rate: A-4% B-6% C-8% D-10% F-20%)

Car Payment
$379
Car Insurance

$50

Cell phone

$20

11%
Car payment, insurance and gas should be no more than 28% of net
1% income; estimate $300 biannually for insurance
Find a provider and get a plan that fits your budget. Click on the link to find your
1% planCell Phone Plans
http://mappingyourfuture.org/paying/standardcalculator.htm

Student Loan (what is the going rate of interest)

5.5% $900/month
Total Fixed Expenses
$2,099
Variable Expenses
Electricity or Gas

Gasoline
Groceries
Car Maintenance
Car Repairs
Laundry/Dry Cleaning
Total Variable Expenses
Discretionary Expenses
Books, Magazines, I-Tunes, Apps
Personal Grooming
Clothes
Charitable Contributions
Gifts
Health Club Membership
Eating Out
Movies and Videos
Sports
Concerts and Plays

$40

$100
$250
$40
$150
$30
$610

26%
61%

1% Average for a single adolescent.

look up the average cost per gallon and estimate how far you will be driving on a
monthly basis (miles); may depend on where you plan to live and where you plan
3% to work
$7 Average for a single adolescent.
1% What is the cost of an oil change?
4% Buy a set of tires for your car.
1% Average for a single adolescent.
17%

Must choose eight (8) of the following

$20
$50
$100

$80

Enter a picture of your car

1% Sports Illustrated, GQ, People,

1% Find out how much it cost to get your hair done or cut
3% Gap, Aerostposle, American Eagle, Champs, Etc
Church tithes usually 10%, United Way,
Birthdays, Anniversary, Weddings, graduations
Ballys, LifeFitness, Xsport, L.A. Fitness
2% McDonalds, Burger King, Pizza Hut, White Castles, Applebees, Outback, etc
Blockbuster, Netflix, Movie Theater, On Demand
Club Sports, softball team, flag football, basketball league, etc

AT&T

Verizon

Cell Plans

http://www.finaid.org/calculators/loanpayments.phtml

Vacations
Cable/Internet Access
Pets
Total Discretionary Expenses
TOTAL EXPENSES

$30
$50
$330
$3,383

NET INCOME

$3,437

TOTAL EXPENSES
BUDGET SURPLUS OR DEFICIT

$3,383 98%%
$54

Great America, Wisconsin Dells, Florida, Cancun, etc

1% Comcast, Direct TV, Dish Network, Verizon Wireless & etc.
1% How much is that going to cost you?
10%
98%
Copy net income to here
Add up Savings, Fixed Expenses, Variable Expenses, and Discretionary Expenses
2% Subtract Total Expenses from Net Income

Interest Rate: A-4% B-6% C-8% D-10% F-20%