Assignment: Budget 1
Name:
Congratulations! Tonin Enterprises has just hired you for your first full-time job, at a starting salary of
$33,600/year. Therefore, you are now ready to get a place of your own. The fun is just beginning! You
will need to make some critical decisions regarding your living expenses. These decisions will include
choosing an apartment, furnishing your apartment, and purchasing food, clothing, transportation and
other goods and services.
Use the following information in your budget:
Part A: Income
Gross Income: Your annual Gross income is $33,600; be sure to calculate a monthly amount.
1.
Taxes: Assume that 30% of your gross income will deducted from your pay to cover income taxes
and other payroll deductions.
2. Show your math work for figuring the annual Net income. (Gross – the deductions)
3. Monthly Net income: ____
Part B: Misc. Expenses
TV: Your choices for TV are as follows. Make your choice and include the required amount of
money in your monthly budget.
No Cable
$00.00
Intermediate $50.00
Basic
Deluxe
$40.00
$60.00
4. Monthly TV Choice Amt: ___
Clothes: To calculate your monthly clothing budget:
Consider of the clothes that you wear in a year. Don’t forget about boots, coats, etc. Estimate
how much each item would cost to buy. Add up the total. Divide the total by 12 to get the
monthly clothing amount for your budget.
5. Show your math work for the clothes Amt:
6. Monthly Clothes Amt: ____
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Entertainment: Estimate your monthly entertainment expenses by itemizing and then totaling them.
Here is an example:
two movie passes
$20.00
restaurant with friend
$20.00
dance club
$12.00
weekly pickup hockey game
$50.00
Total:
$102.00
(Note: The list above is an example only. Your monthly entertainment expenses should be
different than what is shown above.) Like you’re clothes you’ll need to figure out the total, but
you do not need to show your work.
7. Monthly Entertainment Amt: ____
Insurance: Everyone must have apartment insurance to cover cost of fire and theft. Assume that
this will cost approximately $200 per year. Calculate the monthly charges.
8. Monthly Insurance Amt: ____
Internet: Your choices for Internet are as follows. Make your choice and include the required
amount on money in your monthly budget. Assume that you already have a computer.
No Internet $00.00
Dial-Up $20.00
High-Speed $40.00
9. Monthly Insurance Amt: ____
Rent:
10. Find an ad for a suitable apartment and paste the URL for the apartment here.
11. Write down the monthly charges for the apartment. If the price for the apartment does not
include utilities, add $50 to the cost of your rent to cover utilities.
12. Monthly Rent Amt: ________
Telephone/Cell: Chose from one of the following three options:
 If you only require a basic phone plan because you don’t use the phone that often and you
rarely make long-distance calls or text, budget $25 per month for telephone.
 If you require an intermediate phone plan because you talk on the phone regularly and
sometimes make long-distance calls with quite a few texts, budget $50 per month for
telephone.
 If you “live on the phone” and make lots of long-distance calls or texts, budget $100 per
month for telephone.
13. Monthly Telephone/Cell Amt: ______
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Food:
According to the USDA, the average American spends approximately $180 - $345 per month on
food costs. This cost is dependent on whether you’re male or female (males tend to eat more) and
how thirty or liberal you make your food plan. If you have to have certain types of foods, or you
eat quite a bit, you’ll have to raise your food budget.
14. Monthly Food Amt: ______
Toiletries/Medication:
In your monthly budget, include $50.00 to cover the cost of Toiletries and Medication. NOTE: If
you know that you’ll need more than that, bump up this amount. But you must have at least $50 in
your budget.
Other Expenses: There are all sorts of other expenses that you may not think about when creating
a budget. Fixing a bicycle, getting a haircut, loaning a couple of bucks to a friend, etc. Include
$75.00 in your budget to cover the cost of possible Other Expenses.
PART D: Monthly Budget
Using the material presented above you will fill in your monthly budget below:
MONTHLY BUDGET
Monthly GROSS Income
Monthly NET Income
Monthly Expenses:
TV
Clothes
Entertainment
Insurance
Internet
Rent
Telephone/Cell
Food
Toiletries
Other Expense
Total Expenses:
Monthly Total So Far:
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