Bungay High School
Personal Budget
Name:
Occupation:
Location:
Gross Salary:
Payslips, Tax and National Insurance
Monthly Salary
Monthly
Monthly Tax
(gross)
National Insurance
Property
Mortgage
Rent or Buy
Potential
Monthly Cost
of Mortgage or
Rent
Household
Bills
Monthly Salary
(net)
Total Monthly Money
Property Cost Left
Transport
Mode of
Transport
Cost of Ticket
(Monthly)
Cost of Loan
(Monthly)
Additional
Costs; Fuel,
Car-Tax etc…
Total Monthly
Cost of
Transport
Spending the Rest
Calculate your remaining funds for a month
= [Monthly Salary (net)] – [Total Property Cost + Total Cost of Transport]
=
This is your budget for food, clothes and having fun ect.
Fill in this table, deciding how much you are going to spend in each category
For food you will need a budget of at least £15 per week
Food
Clothes
Sports Clubs
Going out with friends
Cinema
Savings (for holidays ect.)
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Bungay High School
Income Tax
Calculating your tax
You have £5,225 tax free.
You have to pay 10% tax on the next £ 2030
You have to pay 22% tax on everything after that
To find the amount of you monthly salary you pay in tax complete this table
Yearly Salary
[a]
Subtract
Subtract
[b]
£ 5,225
£ 2,030
=
To find out how much this is complete these tables
Put answer to [b] here
Divide it by 100
Multiply this by 22
Add 10% of 2,030
[b]
[c]
[c]
[e]
[e] is the amount of tax you pay in a year
To find out how much monthly tax you pay; do the following…
Tax paid in a year
Divide [e] by 12 (for each
month)
[e]
[g]
[g] is the amount of tax paid in a month
National Insurance
To calculate the national insurance contributions you pay, complete the following:
Monthly Salary (gross)
(a)
Weekly Salary Divide (a)
(b)
by 4
Subtract £87
(c)
Divide (c) by 100
(d)
Multiply (d) by 9.4
(e)
Multiply by 4
(f)
(f) is the National Insurance Contribution you pay monthly
(this formula only applies for salaries up to approximately £30, 000 per annum)
Now complete the first section of your personal budget
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Bungay High School
Mortgages
In order to buy a house you must borrow money from a bank. This loan is called a
mortgage.
The amount of money the bank will lend you usually depends on how much you earn. So
the more you earn the more expensive the house you can afford.
How much can I borrow?
In the past you could only borrow up to three times your annual salary, some banks are
now offering five times your salary.
To find this out complete the following:
Yearly Salary (gross)
Multiply by 5
[a]
[b]
[b] is the maximum amount you can borrow. It is called your mortgage potential. You do
not have to borrow this much; remember to consider you monthly repayments when
deciding how much to borrow.
How Can I Decrease The Repayments?
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Bungay High School
To Rent or Buy?
Write down what is important in choosing a property
You now have an idea of how much money you have to spend and how much a mortgage
will cost. Now it is time to find somewhere to live
You will need to go to the property shop to find a property. Find one you like, can afford
and that meets as many of the criteria as possible.
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Bungay High School
Rent
Property One
Property Two
Location
Monthly Cost
Salary left
Details
Tax Band
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Property Three
Bungay High School
Buy
Property One
Property Two
Location
Monthly Cost
Salary left
Details
Tax Band
Page 6 of 11
Property Three
Bungay High School
What’s the Cost?
Household Bills
The gas, electricity and water price are the average prices from a national survey.
Use the table (printed on card) to work out the council tax for your property
Electricity
Annual £495
Monthly
Gas
Water
£295
£463
Total
Utilities
Council
Tax
Total
Household
Bills
Mortgage
This will help you find the total cost of your mortgage repayments over 25 years. This is
assuming that there is no change in the interest rate (there would be in reality).
Monthly Payment
Yearly Total
Total Loan repayment
Rent
This will help you find the total cost of your rent payments over 25 years. This is
assuming that there is no change in your rent payments (there would be in reality).
Monthly Payment
Yearly Total
Rent Paid after 25 Years
Yearly Total
Amount Paid after 25 Years
Utilities
Monthly
25 Year Forecast Cost Totals
Mortgage/Rent
Utilities
TOTAL
Now you can fill in the property section of your personal budget.
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Bungay High School
Car Loans
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Car loans are typically offered with repayment schemes of between 2 to 5 years.
Calculated at 5.6% per year
To find the total monthly repayment amount for the loan use the table below and
find out if you can afford the cost of a car.
Price of car
Total amount of
repayments. Multiply (a) by
1.056
Loan period in months
(number of years multiplied
by 12)
Monthly repayments (b)
divided by (c)
(a)
(b)
Notice that the actual amount the car is costing you goes up if you take a longer loan
period.
Petrol
The amount petrol costs you, depends on the price set by the petrol companies and the
government tax upon that (combining to make the price you pay at he pumps) and length
of the journey travelled in the car. The cost also depends on the size and efficiency of the
engine in the car. Currently petrol prices are approximately 99p per litre (but it is rising
and very changeable). As a guide we have provided approximate weekly costs for petrol
dependant on the type of car.
Complete this table to work out the monthly cost of motoring;
Monthly Cost
Car Loan
Petrol
Insurance
Tax
Parking
Total
Now you can fill in the transport section of your personal budget.
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Bungay High School
Alternative Transport
It is widely accepted that driving is bad for the environment and can prove expensive.
What alternatives are their?
Public Transport
This is basically a choice of bus, train or if in London the tube.
The cost depends on where you live where you work and thus how far you have to travel.
Use the transport costs from your research here
If you work within five miles from your house, you could consider walking to work.
If you work within 10 miles from your house you could consider cycling to work.
What are the advantages of these methods?
If you choose to cycle you will have to include the cost of purchasing a bike in your first
month’s budget. This will be around £50 depending on the bike.
Decide how you wish to travel to work, and then write down your total monthly transport
costs here:
………………………
Now you can fill in the transport section of your personal budget.
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Bungay High School
What Would I Do Differently?
How do you feel about your budget?
Has it changed what you want to do?
How can you make things easier for yourself?
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Bungay High School
Glossary
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
Annual
Tax
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



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

Income tax
NI
Salary
Gross Salary
Net salary
Pension
Contribution
Mortgage
Repayment
Inflation

Interest rate
-Yearly
-Money taken by the Government to pay for running the
Country
-Tax deducted directly from your pay
- National Insurance (a tax linked to weekly income)
-The money you earn
-Salary before tax and NI
-Salary after tax and NI
-Savings, for when you retire, partly paid by NI
-A payment of money
-A long term loan to allow the purchase of a house
-Money paid back on a loan
-Extra money charged by the lender to make a profit and
cover inflation
-The exact % extra the lender is charging per year.
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