Personal Finance
Project
Congratulations! You are now 18 years old,
and a legal adult. You can now join the military
and buy lottery tickets  On top of that; you are
now entitled to all the benefits of being an adult.
The bad news – your parents have decided that
they are sick of supporting you, and you must
move out of your parents’ home, taking only
your clothing (no exceptions).
You must now become fully self-supporting.
While you have graduated from high school,
you did not secure any financial aid or scholarships for college. If you
choose to attend college, you must pay for all tuition and fees yourself.
The following are the steps you must follow in order to become that
“grown-up” you have always wanted to be. Each of the steps counts for
a daily grade, has a specific due date, and must be followed in the order
specified.
The final project (including reflection questions) will count as a test grade,
and is due: ___________________
Welcome to Adulthood,
and Good Luck!
The Steps to Self-Sufficiency
(Please note that each step has a due date and counts as a daily grade)
Step 1: GET A JOB!!!! (Due _____________)
You must find a currently available position for which you are qualified; something
that actually exists in the real world. You may find your job with the aid of the
newspaper want ads, an online job search, or by obtaining an application from a
place of business.
If you are hired for the position, you must then estimate your monthly income.
Assume that you work a 40 hour week.
 Calculate your gross monthly pay by taking your hourly wage, multiplying by
40 and then by 4 weeks.
 You must then calculate your withholding taxes (both Federal Income Tax and
FICA) and subtract them from your gross income to get your net income. By
now you know what this rate is.
 You will also need to if any benefits are included with your job…health care,
discounts, etc.
 Include a resume – if you don’t have one already this is a good time to create
one (you will need it!)
Step 2: Find an apartment and furnish it. (Due ______________)
You must find a currently available apartment. You may find your housing
with the aid of newspaper ads, an online search, or by obtaining an
application from an apartment complex. You may not have a roommate. Explain
why you chose the apartment you did. Was it the location, affordability, availability,
etc.? Now is the time to find out if there is a security deposit. What are the rules or
regulations? Does it come with a washer & dryer or microwave? How much are the
average utilities each month?
How will you furnish your apartment? Include the cost of all items that you would
purchase out of your savings – furniture, supplies, decorations, appliances, etc.
Specifically list all items, their costs, and where you would buy them from. Don’t
forget to calculate sales tax on each item @ 8.25% (or .0825)
You have “saved” $1,000.00 and will use this for any deposits and to purchase
furnishings.
Step 3: Prepare Your Monthly Budget
(Due May _________)
You must now calculate all of your monthly living expenses. You have to take into
account all of your fixed (i.e. rent), variable (i.e. electricity) and occasional
expenses (i.e. doctors visit).
The following is a list of things to consider. You must document your sources for
each of the following categories:
All prices must be real and sources for your information documented.
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Rent
Utilities (gas, water, electric, garbage)
Phone/Cell Phone
Cable
Internet
Transportation (car payment, gas, garage/parking fees)
Insurance (car, life, health, renter’s, dental – include amount of coverage and
deductibles)
Groceries and incidentals
Entertainment
Education
Savings (Pay Yourself First – you must save!)
Charitable giving
Miscellaneous – clothing, shoes (may be required for job)
Your budget must balance! Use your net monthly income that you figured in Step 1.
The Curve Ball (Due May __________)
When you have turned in Step 3 completed, you will receive a “Curve Ball” –
something that will upset your carefully crafted budget, and require you to borrow
money.
#1 You will have to research the costs involved and determine the amount of the
loan as well as the payments/interest, etc. in order to pay for this item/event.
#2 You will research and report on the 3 “C’s” of credit – you can find this
information in your textbook.
You won’t know what specific situation you will face until you have turned in Step 3!
Reflection Questions – detailed responses with complete sentences!
1. How many times did you have to adjust your budget to get it to work out?
2. What did you have to give up, to make your budget balance?
3. What have you learned about the support (or economic subsidy!) provided
by your parents? What’s the impact on your standard of living having lost
your parents’ help?
4. What would be your opportunity cost of moving out?
5. How much did the “curve ball” affect your attitude toward saving?
How much will the credit payments affect your budget?
6. In reality, how will your “real-life” budget be different than the one you
created for this project?
7. In conclusion, what have you learned? Highlight at least three specific
things you learned or were surprised about.
Suggested Resources:
Craigslist.com
Monster.com
ETC
If you find a particularly useful website, please let me know about it so I can add it to
the list!
Name_______________________________
Class Period___________
Rubric for Personal Finance Project
These are things that should be included in your final project!
_____ Cover sheet with name and class period
_____ Written description of your job, including wage and benefits
_____ Copy of the job listing, want ad or an application/note from the employer
_____ Your resume
_____ Your gross monthly income, Federal Income and FICA taxes and net income
(show your work!)
_____ Copy of the apartment listing or rental application
_____ Explanation of why you chose the apartment, the rent and any deposits/fees
_____ A list of all items you will bring with you (with pictures if possible)
_____ A list of all items you will purchase and where you are buying them from
(pictures are nice)
_____ The total of all move in costs. Include taxes and shipping on items you purchase.
_____ Your budget – show your total income minus your total expenses
_____ Documentation of all your expenses (i.e print-out of your insurance, your source
of info., etc.)
_____ The three Cs of credit
_____ Your Monkey Wrench analysis
_____ Your completed credit application
The above are worth 4 points each, for a total of 60 percent of your grade.
_____ Your Reflection Questions – answered thoroughly and thoughtfully!
The Reflection questions are worth 40 points total, or 40% of your grade.
Final Project Grade _________
Name: ______________________________________________ Class period: ____________
Part 1 – Personal Finance Project
Job Information
Company:
Location:
Job Title & Description:
Salary Information
Hourly rate:
$
X
40 (hours worked in a week)
= $
Weekly Pay
X
4
=
-
.
Monthly Gross Pay
$
FICA (calculate 7.65% of your monthly pay and subtract it)
$
Federal Income Tax (calculate 17% of your monthly pay and
subtract it)
=
Monthly Net (“take home pay”)
Name: ______________________________________________ Class period: ____________
Part 2 – Personal Finance Project
Use this form to help you list the items you will buy for your apartment
Item
Source (store?)
Price
Apartment Deposit
Sales Tax
At 8.25%
-0-
Total Cost
TOTAL SPENDING
You cannot spend more than you have!
Subtract the total amount you will spend
from the $1,000. you started with in savings.
$1,000.00
____________
$