Personal Budget Activity

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Personal Budget Activity
2
Personal Budget Reminder

• If HOURLY RATE is given
• HOURLY RATE 40 HOUR WORK WEEK WEEKLY SALARY
• WEEKLY SALARY 4 WEEKS IN A MONTH MONTHLY
  INCOME!
• If YEARLY SALARY is given
• YEARLY SALARY / 12 MONTHS IN A YEAR MONTHLY
  INCOME

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Personal Budget Reminders

• Follow the EQUATIONS on the worksheet in order to
  figure out your NET PAY for the month.
• RECORD your PAYCHECK DEPOSIT (NET PAY) as the
  first transaction in your CHECK REGISTER.

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Housing

• Visit www.apartmentfinder.com and locate an
  apartment that will meet your living
  requirements.
• ie if you have 2 children, you must have a 3
  bedroom house, if you have 2 other roommates you
  must have at least a 3 bedroom house.

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Reflection Questions for TODAY

• 1.Why did you chose the apartment
• that you did?
• 2. How much money do you have left over from your
  net pay after you pay rent?
• Using one of your checks write a check for your
  rent amount to the apartment complex and complete
  your check register.

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Purchasing a Car

• Visit the following websites and locate a new or
  a newer used vehicle.
• www.autotrader.com
• www.carmax.com
• Once you have located your car find a website
  that will allow you to finance the vehicle, in
  order to figure out your monthly payments.
• www.bankrate.com

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Purchasing a Car

• Using the banking website, determine the your
  monthly car payment.
• Record the monthly payment for your vehicle in
  the space provided.

8
Purchasing a Car

• Visit car maintenance websites, such as AutoZone,
  Meinke, or Wal-Mart. Research the cost for a
  routine maintenance exam, such as new brake pads,
  new tires, or an oil change (the choice is yours)
  and record the price in the appropriate place.

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Purchasing a Car

• Determine if your car is a classified as sports,
  sedan, truck, or mini-van and record the
  corresponding insurance amount in the appropriate
  place.

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Miscellaneous Fixed Expenses

• Savings
• Estimate how much money you can afford to set
  back into savings each month for your childrens
  expenses, retirement, etc.
• Remember 4 a day from the age of 16 will make
  you a millionaire by the age of 65.

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Miscellaneous Fixed Expenses

• Rainy Day Fund
• Estimate the amount of money you are willing to
  set back for emergencies only, such as getting
  fired or laid-off, a fire or tornado, or your
  radiator is busted on your vehicle.

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Total Fixed Expenses

• Add all fixed expenses rent, car insurance,
  savings, rainy day fund, etc.

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Reflection Questions for TODAY

• 1. Describe the car you chose to purchase, such
  as year, make, model, and special features, etc.
• Write a check to Moore Automotive for the your
  June car payment and complete your check
  register.

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Flexible Spending

• Visit www.meijer.com
• Select the Weekly Ads link at the top of the
  website
• Locate the state of Kentucky and a Meijer in
  Louisville, KY
• Browse through the grocery ad in order to locate
  the food items on your worksheet.

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Flexible Spending

• Add the total amount of the cost of food and
  record that number in the appropriate field.

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Flexible Spending

• Using Meijers grocery store ad estimate the cost
  you would spend in a months time on personal and
  household items such as toilet paper, paper
  towels, shampoo, soap, etc. and record that
  amount in the appropriate fields.

17
Flexible Spending

• Using the internet, find the cost for the
  clothing, entertainment, and other personal items
  that you would normally spend in a months time.

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Reflection Questions for TODAY

• 1. How much money did you spend on groceries for
  the month. Is the number comparable to what you
  believe your parents spend on groceries.
• Write a check to Meijer for the amount of your
  groceries for 1 week and complete your check
  register.

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General Instructions

• Using the Monthly Budget Summary (last page)
  record the information from the previous
  activities in the appropriate section.
• There is very little additional math needed
  during the budget summary.

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Gross Income

• Record your GROSS income from the career section
• Record the total amount of DEDUCTIONS (taxes,
  medical, and retirement).
• Record your NET PAY (your monthly pay AFTER taxes)

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Fixed Expenses

• Record the amount that you spent on
• Rent
• Utilities
• Renters Insurance
• Monthly Car Payment
• Car Insurance
• Savings
• Rainy Day Fund
• Add ALL of your FIXED EXPENSES together

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Flexible Expenses Instructions

• Record the amount that you spent on
• Food
• Household Items
• Personal Items
• Clothing
• Entertainment
• Transportation
• Gifts
• Miscellaneous Items
• Add ALL of your FLEXIBLE EXPENSES together

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TOTAL EXPENSES

• Add your TOTAL FIXED and FLEXIBLE EXPENSES
  together and record that amount in the
  appropriate spot.

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FINAL AMOUNT

• Subtract your TOTAL EXPENSES from your NET
  INCOME, to determine the total amount of money
  you have left over or your insufficient funds.
• NET INCOME TOTAL EXPENSES
• MONEY LEFTOVER or INSUFFICIENT FUNDS

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NOW WHAT?

• If you had INSUFFICIENT FUNDS (a negative number)
  you will need to rework your budget.
• This might mean you have to eliminate your
  entertainment or clothing budget. BE SURE TO LOOK
  IN YOUR FLEXIBLE spending and eliminate any
  UNNECCESSARY items.
• Once you have a positive number proceed to the
  next slide.

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NOW WHAT?

• If you received a POSITIVE number and have money
  left over then answer the following questions on
  the next slide on a BLANK SHEET OF PAPER that
  will be stapled to your packet!

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Reflection Questions for TODAY

• 1. Explain the outcome of your budget. Did you
  have to rework your budget multiple times? Was it
  easy to determine your budget or did you
  constantly have to consider how much money you
  had in the bank? What would you change about your
  budget if money was not an issue?

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FINAL STEPS

• Staple your BUDGET JOURNAL, REFLECTION QUESTIONS
  from TODAY, CHECKBOOK and REGISTER to your
  BUDGET PACKET and turn into the tray.

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Personal Budget Reminders

• If you finish YOU MAY VISIT only the following
  sites and play games
• www.practicalmoneyskills.org
• www.ItAllAddsUp.org
• www.studentcenter.ja.org