Assignment: Budget 2
Name:
This is an extension of your Budget 1 assignment, so you will need to look revisit that assignment.
Like you did in Budget 1, you will be adding to your budget scenario.
Remember to show all your work and where asked explain the reason the choices that you made.
Use the following information in your budget:
Part A: Transportation:
Assume that you will be looking to buy a car. You can walk, bike, or take the bus.
However, you may want a car or truck for convenience and pleasure so we’ll look at a couple
of different options.
Picking a Vehicle
1. Complete some research into available new or used vehicles and provide the following
information about a car you selected:
a)
Make:
b)
Model:
c)
Year:
d)
Cost:
e)
Where is it being offered?
Auto Loan Financing:
Using Edmunds.com Auto Calculator, or another of your choice, provide the following
information.
2. Assuming that you will need to finance 60% of the car:
How much you would finance
Your expected Loan Rate
Number of years you would finance
Monthly Cost of Car Loan
3. Now assume that you would have to finance 100% of the car:
How much you would finance
Your expected Loan Rate
Number of years you would finance
Monthly Cost of Car Loan
Vehicle Maintenance and Regular Expenses
4. Using the Edmunds.com or comparable site figure out the regular vehicle maintenance:
a. List the types of regular maintenance on the vehicle you chose. If your vehicle is not
listed, select a vehicle that is similar in size, style and years.
b. Total Cost of maintenance
c. Assuming that regular maintenance would need to be done at least every 3 months,
what would be your monthly total
5. Gas:
Number of miles (job and personal) that you intend to drive each
month
Approximately how many miles per gallon you get.
Approximate number of gallons you’ll use each month. (Miles/Miles
per gallon)
Current price of gas (do a web search, there are lots of places that list
current gas prices)
Total cost of gas each month (# of gallons used * price per gallon)
6. Insurance:
Check around to a variety of places and find out how much it would be to insure the
vehicle you selected:
a) Types of insurance you would use on your vehicle (there are several and some are
mandatory, list at least 2):
1.
2.
b) Monthly cost to insure vehicle:
PART B: Transportation Monthly Budget Totals:
7. Fill in the following entries for the transportation portion of your budget:
Monthly cost of the car loan you decide to use
Monthly cost of maintenance
Monthly cost of gas
Monthly cost of insurance
Total monthly expense of car
PART C: Monthly Budget
Using the material figured, you will fill in your monthly budget below:
8. Select one of the following options for your monthly budget entries:



If you choose not to have a car, then you must budget $100 per month to cover the
cost of a bus pass, cab rides, etc.
If you already have a car, then you must still put in the cost of regular maintenance,
gas and insurance.
Or you can decide on a loan option.
Monthly Budget Revised
Monthly Total So Far (From Assignment: Budget
1):
Monthly Expenses:
Transportation
Loan Repayment
Total Expenses:
Total amount left at the end of the month
PART D: Budget Analysis
9. Now that you’ve had a pretty through budgeting experience, it’s time to write about
what you’ve learned:
a) Do you think you could live at this salary?
b) What would you do differently?
c) What are some things that could impact your salary?
d) What are some things that could impact your budget?