PERSONAL BUDGET ASSIGNMENT
FINANCIAL LITERACY
Every day you make financial decisions that determine how much you spend, save and invest. How
good are you at managing your money? Can you take charge of your own financial affairs, be smart
with money, independent and plan for your future? Answer the 22 questions below and start on the
road to financial literacy. While making decisions about how you spend and save your money stop first
and think about how environmentally responsible lifestyles can contribute to a healthy, and sustainable
environment. As well, reflect on the reasons why you would choose one dollar amount over another
amount. Number each question, and type your numerical answers in Word, followed by an
explanation of your choice. Use your answers to prepare a spreadsheet of your budget (see
example provided) showing monthly net income, expenses, and savings. Follow the instructions
below and you will be on your way to being financially independent versus financially dependent.
PART 1
CAREER & INCOME
Choose a career from the website, careercruising.com and select a starting gross salary (before taxes)
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1. What career have you chosen?
2. What is a reasonable starting salary for your preferred profession?
3. Gross monthly income ________________ (divide yearly salary by 12)
4. Net monthly income ________________
*About 35% of your gross monthly income is subtracted from your pay cheque every month. Certain
deductions are taken off (e.g. Income Tax, Canada Pension Plan, Health Insurance etc.) Example: If
your monthly income is $3000 – 35% is $1050, (3000 * .35 = $1050), so your Net Monthly Income
will be 3000-1050 = $1,950.
PART 2
EXPENSES
Pretend you have graduated from college or university, have your first real job, and are living in a
rented apartment in the town/city where you work. Prepare a budget for yourself for a four-month
period. To help you get started, you must first answer the following questions with an
explanation after each.
1. Savings – always pay yourself first by saving 10% of your net income. This is savings that is
automatically deducted from your pay cheque or withdrawn from your bank account. Explain what
you are going to save for in the near or distant future. (e.g. car, house, emergency fund)
2. Rent - What is your monthly rent for an apartment or townhouse in your chosen city? You
can share an apartment with a friend or two if you like.
Check the classified sections of newspapers. (e.g. The Toronto Star, Hamilton Spectator or Burlington
Post (print the classified ad to hand in with your assignment)
3. Food – Create a weekly shopping sample menu (see example provided) by going to such sites
as grocerygateway.com to get prices for your food items. Multiply your weekly total $ amount of
groceries by 4 to come up with an estimated monthly total. Compare your monthly total with the
monthly average that follows: Groceries including snacks, plus household cleaning supplies: Daily
average $12.50 to $15.00 per person. (12.50 X 30 days = $375/month)
Ask yourself, is my monthly grocery bill realistic or not?
4. Transportation - Your options are: taking the bus, leasing (or renting) a car, or purchasing a used
car. A city bus pass costs $80.00 a month. Please explain why you would be taking a bus, instead of
having a car, and tell me why it would benefit you. Research your monthly car or lease payment by
checking out such websites as www.autotrader.ca, www.leasebusters.com and
www.driverlane.com/calculator/calc.asp Car loans or lease arrangements usually are for 3 to 5 years.
(print the car information to hand in with your assignment)
5. Automobile costs – Car operation – (gas/oil) $150 to 175 per month.
(consider such factors as: environment, car usage, season, distance, supply and demand)
6. Car Insurance – ($2000-$3600 per year ) (Factors: gender, age, area you live in, driving record,
type car)
7. Cellphone – Options: 1) Pay as you go -$20.00 per month, 2) Contract $45.00 to $90.00 per month,
3) Landline – basic charge - $25.00 per month. Choose at least one of the options. (Factors: type of
career, features desired)
8. T.V. & Internet – basic cable & Internet $35 to $75 per month. Choose one or both (Factors: high
def, speed of modem, number of channels etc.)
9. Credit Card Payments – usually $64 to $74 per month (avoid credit where possible) Explain in detail
the types of items you are putting on your credit card each. (e.g. you might put $64 worth of items in
one month and then have $74 in another month) Be realistic.
10. Grooming – haircuts, personal hygiene products, soap, shampoo, toothpaste, cosmetics,
medications, $35 to $70 per month (what would your money go towards each month e.g Haircut in
one month, hygiene products the next etc.)
11. Recreation – movies, books, magazines, DVD rentals, concerts, eating out, $50 to $100 per month.
(same as above-explain what you would spend your money on each month)
12. Utilities – heat, hydro, water, depends if it is covered in your rent or not, $50 to $100 per month
(Factors: amount of usage, time of year)
13. Hobbies – depends what you do, $25 to $50 per month (describe what interests you would spend
your money on)
14. Employment expenses - coffee fund at work, work social committee fund, buying your lunch, $10
to $200.00 per month (explain how much money you would contribute and why?)
The following 8 categories don’t require any explanation. Just indicate the realistic amount on
your budget spreadsheet:
15. Clothing – boots, shoes, bathing suits, jackets, suits etc. (remember to consider all seasons) $100
to $150 per month.
16. Health and Life Insurance – can range from $100 to $500 per month. Be realistic, that you will
most likely need health, dental and property insurance.
17. Sports club membership - $25 to $50 per month
18. Maintenance/Repairs – redecorating, household repairs $15 to $20 per month
19. Buying Gifts for others – birthdays, Christmas etc. $35 to $50 per month
20. Travel/Vacation – once a year and/or small holidays throughout the year $50 to $85 per month
21. Charity – gifts of money to charitable organizations like world wild life, cancer society, food bank,
church, $15 to $20 per month.
22. Student loan payment – depends on the location of your post secondary education: $100 per
month if you stayed close to home and $200 per month if you moved away for school
Now enter your numbers into an Excel Spreadsheet and make sure you use appropriate
formulas.
PART 3
REFLECTION
Once you have completed the budget in Excel, reflect on how you are spending your money. You may
discover you are spending more than you are making or have little money left.
Describe in 3 to 4 paragraphs what you would do differently to cut down on your monthly
expenses and to try and save money. (so that you have more surplus or profit each month) (e.g. you
may be spending $10 per day on lunch and coffee, which would equal about $200 a month, so you
might consider “brown bagging it” and save that money for a vacation, or maybe work out at home,
instead of paying for a gym membership)
Keep in mind that you have more control over your variable expenses then your fixed expenses. Look
at all your variable expenses first and see if you can save some money.
Fixed expenses are expenses that don’t generally change from month to month, like rent, most utilities
and car payments.
Variable expenses are expenses that can easily change, like the amount spent on food, entertainment or
clothing.
Total your fixed expenses per month
___________________
Total your variable expenses per month ___________________
PART 4
INVESTMENT
You have inherited $10, 000 from the passing away of your Great Aunt May. Create an investment
plan in the chart provided, showing how you will invest the money (see Mrs. Oates’ example
provided). Fill in the “Amount of each investment”, “Type of Investment” and a description of what
you are saving up for.
In full sentences in Word, comment on your choice of lifestyle, level of risk and expectant return and
why you chose the investment type that you did. Give reference to terms discussed in class.
Amount of Investment
Type of Investment and
Length of time
Description of what you
are saving for
Your assignment must include:
-Title Page
-Word Document with questions, answers and explanations
-Personal Budget Excel Spreadsheet
-Reflection on budget and how to save money by cutting back expenses (in Word)
-Investment chart and explanation (in Word)
Yearly wages:
x
Gross Pay/Month
Net Pay/Month (after taxes)
Expenses
Savings 10% of net pay
Rent
Food
Transportation
Automobile Costs
Car Loan/Lease Payment
Car Insurance
Car Ex. (gas, oil changes)
Cellphone
TV & Internet
Credit Card Payment
Grooming
Recreation
Emergency Savings
Clothing
Insurance (tenant etc..)
Education
Sports Clubs
Maintenance/Repairs
Gifts
Travel/Vacation
Chairty
Utilities
Hobbies
Student Loan Payment
Employment Expenses
Add another
Add another
TOTAL
Surplus
Deficit
PERSONAL BUDGET
Name: your name here
Date:
Job Title: x
January February March
April
Total
Percent
EVALUATION RUBRIC
1
2
3
4
Research
Skills
Thing
Research is not
complete.
Most numbers
are made up.
Research has
some holes and
non-factual
numbers.
Research is
complete, using a
variety of sources,
numbers are
realistic. Came up
with ideas for
environmental
responsibility.
Research is
thorough using a
variety of sources
for each aspect,
numbers are
realistic. Came up
with ideas for
environmental
responsibility.
Spreadsheet
(A)
Spreadsheet
has many
formatting
problems, no
use of
formulas. It is
difficult to
understand, no
pie graph.
Spreadsheet has
some formatting
problems but
you’re learning.
Attempted a pie
graph.
Spreadsheet is
properly formatted
and easy to read
and use, formulas
are used correctly
where necessary,
pie graph used
effectively.
Spreadsheet is
properly formatted
and easy to read
and use, formulas
are used effectively,
pie graph used with
advanced
knowledge.
Knowledge of
content
(K/U)
Demonstrates
limited
understanding
of budgeting
and financial
literacy.
Demonstrates some
understanding of
budgeting and
financial literacy
by the way
questions are
answered and
assignment
completed.
Demonstrates
considerable
understanding of
budgeting and
financial literacy
by the way
questions are
answered and
through completion
of assignment
expectations.
Demonstrates
considerable
understanding of
budgeting and
financial literacy by
the way questions
are answered and
through completion
of assignment
expectations.
Memo
Formatting
Skills
(C)
Memo format
is not used
properly, does
not effectively
communicate
ideas and
information
required.
Memo format is
used,
communicates
ideas and
information with
some
effectiveness.
Memo format is
used correctly with
parent comments
and signature,
communicates
information with
considerable
effectiveness.
Memo format is
used correctly with
parent comments
and signature,
communicates
information with a
high degree of
effectiveness.