Personal Finance and Economics

 Project 3

Evaluation 33

Personal Finance and Economics

(BUSH 033 059)

It is now time for you to complete the third project for this course. This project is a graded assignment that gives you the opportunity to show your teacher what you have learned from reading and studying the content material. Be sure to follow all directions carefully. Since this project is worth 12% of your final grade, you will want to work hard on it and do your best job. This project may be submitted electronically using the online course management system. Follow the directions in the My Work section of your online course management system under the link for Project 3.

You may complete your project using the following pages. Feel free to add extra pages if you need them. Be sure to include your name and UNHS ID number on your project.

Personal Monthly Budget

(100 Points Possible)

Develop a personal budget based on the income from a full-time job you want after high school or after college. Be as specific as possible and keep the information local to the area in which you will be living. Now, I know you will have to use your imagination if you are still uncertain of your career path, but this will be a great opportunity for you to explore a few different careers and their potential salaries. You need to document your salary for this job through proper research, so be sure to identify your sources of information. Be sure to cite all your sources at the end of your Budget Review.

If you need a place to start, you can use the local library or the Internet. One good source of reliable information is the Occupational Outlook Handbook, which is compiled by the Bureau of Labor Statistics. (http://www.bls.gov/oco/)

Another good place is Nebraska Career Connections (http://www.nebraskacareerconnections.org/)

Once you have the annual gross salary for the job you choose, you must figure the monthly net salary. Again, you will have to research and document your sources. Review Chapter 5, pages 156-187 of your textbook, to determine approximately how much income you will keep per month after taxes. Also, you will need to calculate any other monthly income you may have from interest or other sources.

Next, you need to itemize your expenses. This should be a complete list. The form that follows has listed most of the major expenses you will have. However, you have to add or delete according to your own plan and lifestyle. You will need to complete this form as part of this project. Feel free to add items that are not currently on the form, but make sure you label all the itemized amounts so that your teacher will know what they are for.

You will also need to document all your expenses. For instance, if you do not have a car now but know you will in the future, you must research the cost of that specific car. You will also have to calculate transportation costs, housing costs, and utilities. All this information is available on the Internet or at your local library—be sure to cite your sources at the end of your Budget Review.

JOB YOU HAVE CHOSEN ANNUAL GROSS SALARY
   
   
INCOME & DEDUCTIONS MONTHLY PAYROLL AMOUNTS
Gross Monthly Income  
Federal Tax deduction  
State Tax deduction  
Social Security deduction  
Medicare deduction  
   
BUDGET CATEGORY MONTHLY BUDGET AMOUNT
INCOME  
Net Income  
Interest Income  
Miscellaneous Income  
Total Spendable Income   
   
EXPENSES & INVESTMENTS  
HOME   
Mortgage or Rent  
Homeowners or Renters Insurance  
Property Taxes  
Home Repairs/Maintenance/Homeowner’s Association Dues  
Home Improvements  
   
UTILITIES  
Electricity  
Water and Sewer  
Natural Gas or Oil  
Telephone (Land Line, Cell)  
   
FOOD  
Groceries  
Eating Out, Lunches, Snacks  
   
FAMILY OBLIGATIONS  
Child Support  
Daycare, Babysitting  
   
HEALTH AND MEDICAL  
Insurance (medical, dental, vision, life) premiums  
Unreimbursed Medical Expenses, Co-pays  
Fitness (Gym, Yoga, Massage,)  
   
TRANSPORTATION  
Car Payments  
Gasoline/Oil  
Auto Repairs/Maintenance/Fees  
Auto Insurance  
Other Transportation (tolls, bus, subway, taxis)  
   
DEBT PAYMENTS  
Credit Cards  
Student Loans  
Other Loans  
   
ENTERTAINMENT/RECREATION  
Cable TV/Videos/Movies  
Computer Expense  
Hobbies  
Subscriptions and Dues  
Vacations  
   
PETS  
Food  
Grooming, Boarding, Vet  
   
CLOTHING  
   
INVESTMENTS AND SAVINGS  
401(K)or IRA  
Stocks/Bonds/Mutual Funds  
College Fund  
Savings  
Emergency Fund  
   
MISCELLANEOUS  
Toiletries, Household Products  
Gifts/Donations  
Personal (Hair, Make-up, Other)  
Miscellaneous Expenses  
   
TOTAL INVESTMENTS AND EXPENSES  
   
SPENDABLE INCOME  
MONTHLY EXPENSES  
Surplus or Shortage (Your spendable income minus your total expenses and investments)  

For expenses incurred more or less often than monthly, convert the payment to a monthly amount when calculating the monthly budget. For instance, convert an auto expense that’s billed every six months to a monthly amount by dividing the six-month premium by six. This money should be kept separate from your other money so it is available when the bill becomes due. For parking fees that are paid weekly, multiply by 4 to approximate a monthly amount.

Budget Review

Once the chart is completed, review your costs. Did you really include every cost? Did you come up short? That is, are your expenses greater than your income or vice verse? In a written budget review, discuss this and the whole budgeting process. Be sure to outline your family situation in this budget review. Are you single, married, divorced? Do you have children (List how many and their ages.)? This review should be a serious reflection of your own personal finances: be thoughtful and sincere. Your review should be at least 500 words. Don’t forget to cite any sources you used for your budget at the end of your review.

Grading Rubric

The following rubric will be used to score your monthly budget and budget review.

 

 

  Excellent Good Satisfactory Needs Improvement
Knowledge  Shows complete understanding of budgeting concepts and the decision-making process. Shows substantial understanding of budgeting concepts and the decision-making process. Shows some understanding of budgeting concepts and the decision-making process. Response shows a lack of understanding of budgeting concepts and the decision-making process.
Requirements  Goes beyond

requirements with exceptional detail.

Meets requirements and has appropriate detail. Meets some of the requirements. Some detail is missing. Does not meet requirements. Some detail is missing.
Research Research is complete and exceeds requirements. Sources are legitimate and varied. Research is complete and meets requirements. Sources are legitimate and varied. Research is not complete. Sources are legitimate but not varied. Research is incomplete. Sources are questionable.
Budget Numbers (Income and Expenses) Estimations were realistic and showed a clear, concise understanding of the process and current economic conditions. Estimations were realistic and showed an understanding of current economic conditions. Estimations were somewhat realistic and showed some understanding of current economic conditions. Estimations not easy to interpret. Estimations were not realistic and showed a vague understanding of current economic conditions.
Budget Review All questions were answered with clear, thoughtful reflection of the budgeting process. All questions were answered with somewhat of a clear, thoughtful reflection of the budgeting process. Not all questions were answered with clear, thoughtful reflection of the budgeting process. Not all questions were answered. Review lacked a clear, thoughtful understanding of the budgeting process.
Structure and composition of written material Sentences and paragraphs are complete, well constructed and of varied structure.

There are no errors in grammar or spelling.

All sentences and paragraphs are complete and well constructed (no fragments or run‐ons).

There are minimal errors in grammar and/or spelling.

Most sentences and paragraphs are complete and well constructed. A few need some work.

There are errors in grammar and/or spelling.

Many sentences and/or paragraphs need work.

There are several errors in grammar and/or spelling.

Points 90-100 80-89 70-79 69 or below
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