Personal Budget Project
Grade Twelve Economics
Introduction
You’re an adult now! You are moving out of your parent’s house and want to live on your
own. You have decided to skip college because you hate taking notes and you think you’ll have
more time to text your friends and play video games. You are lucky enough to find an entry level
job with health insurance. You must now figure out how you are going to budget your money
based on a take home amount of $30,000 a year.
A budget is a plan for using your money in a way that best meets your needs and wants--it is
the first step toward financial success. A budget is all about making your own choices. By
using a budget you will learn how to live within your income, avoid running out of money
between paychecks, evaluate your spending habits, make wise spending choices, set aside
savings for unexpected expenses, and develop good money management skills that will help you
reach your financial goals.
The Task
Now that you are ready to jump into the working world, your job is to create a personal budget
from scratch. Do not assume that you have anything! Based on a take home amount of $24,000
(figure taxes have already been deducted from approximately a $30,000 salary) a year, create a
personal budget.
Fixed Expenses:
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Rent (Payment per month)
Automobile (Monthly Payment)
Auto Insurance (Monthly Payment)
Savings
Variable Expenses:
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Food (groceries, restaurant meals)
Telephone
Cell phone
Gas & Electricity
Television
Clothing
Entertainment
Haircuts
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Vacations
Gas
Medical
STEP ONE: ESTIMATE YOUR INCOME
Knowing how much you earn each month is essential to creating a realistic budget. You are
making $24,000 a year after taxes. Divided by twelve months in a year, that comes out to $2,000
a month. You cannot exceed that amount when you arrive at your monthly budget for
expenses.
While gathering information, document all findings on the budget worksheet provided.
Make sure that you record whatever amount you need and the website or other resource where
you found your information. Some areas such as allowance for vacation and savings are items
that you may ask a parent or teacher for an amount, always be sure to document your resources.
After information is gathered, using the information on your budget sheet, complete a monthly
budget.
STEP TWO: BUDGETING FOR SAVINGS AND UNEXPECTED EXPENSES
Saving money for future goals and dreams is another important part of your budget.
Remember, pay yourself first!
You should set aside approximately 3 to 6 months worth of living expenses to help with
unexpected costs. Saving for unexpected expenses will be helpful if you become unemployed, if
you need unexpected medical attention or if you encounter some other financial problem. After
you determine your total monthly expenses, you will better be able to estimate the amount you
will need to save for these unexpected expenses.
By setting priorities, you identify what is important to you. By setting goals, you begin to
translate your priorities into actions. Goals can be categorized into different types of goals. In
addition to saving, you can save for short- (less than a year), mid-(1 to 3 years), and long-term
(longer than 3 years) saving goals and set aside money each month to reach these goals. Begin by
writing your personal and financial goals. Well-written personal and financial goals should:
—be realistic.
—be stated in measurable terms.
—have a time frame.
—state the action to be taken.
STEP THREE: BUDGETTING FOR EXPENSES
Expenses are money you spend on things you need and want. A need is something you must
have to survive, such as food, shelter and clothing. A want is something you desire or would like
to have or do.
Fixed Expenses are those expenses that do not change from month to month
Housing Expenses
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Housing expenses will be the largest portion of your budget. Experts
recommend spending no more then 25 to 30 percent of your budget on
housing expenses. Record your monthly rent payment on your rent and
rental insurance worksheet.
Name of the complex and address – attach an ad for the complex or a brochure
Describe the apartment (number of bedrooms and bathrooms, square footage etc.)
What utilities are paid for by the apartment complex, which must you pay for
What are the move in costs (security deposit, 1st months rent, etc.)
Does the apartment include any kitchen appliances? What about a washer and dryer?
What will be your total costs for moving into this apartment?
Transportation Expenses
If you already own your own car, you probably have your parents to thank for that. However
you now must pay for your own insurance and gas as well as maintenance costs each month. If
you don’t have your own car, you must now buy one and figure that into your monthly budget.
Most experts say your transportation costs should be 10 to 15 percent of your monthly budget.
Variable costs are those costs that change from month to month and are more difficult to
budget for on a monthly basis.
Food/Dining Expenses
Estimating food costs can be difficult, but keep in mind that you eat 3 meals a day and there are
30 days in a month. If you figure an average of $3 per meal, you would spend approximately
$270 a month for food. Food costs should be about 10 - 15% of you net monthly income. Since
everyone's eating habits are different and depending on how often you eat out or eat at home,
this amount will vary. There are many websites available that you can use to estimate your
monthly food bill based on your individual eating habits. Dining out is more expensive, but
most of you will eat out more now without your parents to cook for you.
Personal/Clothing Expenses
In additional to clothing, personal items include personal toiletries, laundry, haircuts, etc.
Personal/clothing items will amount to about 2-10% of your net monthly income. Follow the
directions on your Personal/Clothing Expense Worksheet. Attach any supporting documents
that you used to determine your expenses each month.
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Remember – you have nothing, no food, no toothpaste, no soap, no towels, no toilet
paper, etc.
Make a list of items you need to buy, brand name price, etc.
Look up prices on the internet or take a shopping trip (you don’t literally have to buy
anything, so it can’t hurt to find out what things cost)
Utilities
You will need to budget for utilities, such as gas and electricity, telephone, cell phone, cable or
satellite television, water, etc. (Gas and electricity may already be included in your rent but
you will still be required to research this information. Be sure to make a notation on the final
worksheet if the amounts are included in the rent.) To help estimate these expenses, the
managers of properties or the local utility company might be willing to give you information
about specific properties. You can also ask family/friends about how much they spend on
utilities. Enter the amounts for each expense on the Utilities Worksheet. Experts suggest you
should budget 5 to 10 percent of your net income for utilities each month.
Entertainment Expenses
Be sure to include leisure and recreation in your budget. Complete the Entertainment
Expense Worksheet and enter an amount on the Personal Budget Worksheet which you
feel accurately reflects your entertainment needs. Be realistic, you will not sit at home, you
will go out and spend money on yourself and possibly your friends as well.
Miscellaneous Expense
Because you cannot predict every monthly expense, the miscellaneous category will include
out-of-pocket expenses, convenience items, incidental home expenses (laundry supplies, etc.),
vacation (unless you have included this as one of your savings goals), health club membership,
books, continuing education, magazines, newspapers, and other small purchases. This category
also includes life insurance premiums. Complete the Miscellaneous Expense Worksheet and
enter an amount on the Personal Budget Worksheet.
SET FOUR: REVIEW – COMPLETE ALL REQUIRED WORKSHEETS AND REVIEW
QUESTIONS
1) Personal Budget Worksheet
4) Review Worksheet
2) Financial Goal Worksheet
5) Personal Budget Project Checklist
3) Individual Section Worksheets
Personal/Clothing Expense Worksheet
Estimate the quantity you will need for the month.
Item
Est.
cost
per
Quantity item
Total
Cost
Hair Products
Cosmetics
Grooming
Products
Hair cuts, etc.
Laundry
Toilet Paper
Clothing
Shoes
Other
Other
Total Est. Cost
Monthly Est. Cost
Total Clothing
& Personal
(Show this amount in your budget)
List product – Name of the product, brand name, and price (attach a typed list to this sheet)
Example – 1) Toothpaste (Aquafresh) $2.19
Review Worksheet
(Retype this worksheet with the exception of these directions and fully answer all of the
questions in complete sentences. This page is worth forty points of your total on this assignment)
1. When you finished entering your income and expenses, was your total income more than
your total expenses? If so why?
2. Explain amounts you did not include in your budget (such as land phone because you will
use your cell phone—still include documentation, however).
3. How would your budget be different if you earned an income less than you used in your
budget? More than you used in your budget? Explain your answer.
4. Do you feel you are better prepared to make a budget after completing this project?
5. Other comments/suggestions for improving this project.
PERSONAL BUDGET PROJECT
Personal Monthly Budget Worksheet
“Where did it All Go?”
GROSS MONTLY INCOME
($30,000 divided by 12 months) =
$ _____2,500 a month_________
TAXES
Federal Taxes =
$
3,000______________
State Taxes =
$
700______________
Social Security/FICA
$
2,300______________
$
6,000_a year________
Total Taxes Owed:
AFTER TAX MONTHLY INCOME:
** Apartment/House Rent
$ __________________________
** Renter’s Insurance
$ __________________________
TOTAL HOUSING/MONTH
$____2,000 a month_______
$ _______________________
Gas/Heat
$ __________________________
Electricity
$ __________________________
Telephone
$ __________________________
Cell Phone
$ __________________________
Garbage/Trash Removal(house)
$ __________________________
TOTAL UTILITIES/MONTH
$ _______________________
Groceries
$ __________________________
Dining Out (estimate)
$ __________________________
TOTAL FOOD/MONTH
$ _______________________
**Car Payment
$ __________________________
Gas/Oil/Maintenance/Repairs
$ __________________________
**Car Insurance (full coverage)
$ __________________________
TOTAL TRANSPORTATION/MONTH
Clothing/Personal Purchases
$ __________________________
Dry Cleaning/Laundry
$ __________________________
TOTAL CLOTHING/PERSONAL/MONTH
$ ________________________
$ ________________________
Health Insurance Premiums
$
150_____________
Medicine/Prescriptions
$ __________________________
Dental
$ __________ 60______________
Eye Care
$ __________________________
TOTAL MEDICAL CARE/MONTH
Entertainment
$ __________________________
Television/Cable/Satellite
$ __________________________
Vacations
$ __________________________
TOTAL ENTERTAINMENT/MONTH
Visa/MasterCard
$ __________________________
Other
$ __________________________
TOTAL CREDIT CARD EXPENSES/MONTH
Saving Account
$ __________________________
Pensions/IRA/Retirement
$ __________________________
Life Insurance
$ __________________________
Other Investment
$ __________________________
TOTAL SAVINGS/MONTH
$ _________________________
$ ________________________
$ ________________________
$ ________________________
Gifts
$ __________________________
Charitable Contributions
$ __________________________
Other:_________________
$ __________________________
TOTAL MISSELANEOUS EXPENSES/MONTH
$ _________________________
TOTAL MONTHLY EXPENSES
$ ________________________
Monthly income – Monthly Expenses = $ _______________________ *
(Total Monthly Income (from page one) minus total monthly expenses)
* This is the AMOUNT LEFT AT THE END OF THE MONTH
If you budgeted correctly, this should be zero ($0).
Personal Budget Checklist
Requirement
Points
Possible
Points
Earned
50
_____
40
_____
1) Complete the Rent and Rental Insurance Worksheet
(Fill it out neatly in black or blue pen, you may want
to make copies in case you need to make corrections)
40
_____
2) Complete the Utilities Worksheet
40
_____
3) Complete the Total Food/Groceries Worksheet
40
_____
4) Complete the Transportation Worksheet
40
_____
5) Complete the Clothing/Personal Worksheet
40
_____
50
_____
10
______
350
________
Step 1: Income
1) Complete the Personal Budget Project Worksheet
(Fill it out neatly in black or blue pen, you may want
to make copies in case you need to make corrections)
Step 2: Savings
1) Financial Goal Worksheet
Step 3: Expenses
Step 4: Review and Modify
1) Review Worksheet
Step 5: Title Page/Order of Project Packet
1) Cover Page
(Type the cover page: Project Title, Name, Date
& Period)
Total Points Possible
Rent and Rental Insurance Worksheet
1) Find an apartment to rent
You want to live on your own (you may have up to 2 roomates). Document all of your
information and provide examples of your final choice of apartment. Answer the following
questions neatly in full sentences in blue or black ink. You may want to make a copy of this
sheet so you can make adjustments and corrections to your information.
2) Name of the complex and address – attach an ad for the complex or a brochure
______________________________________________________________________________
3) Describe the apartment (number of bedrooms and bathrooms, square footage etc.)
_______________________________________________________________________________
_______________________________________________________________________________
4) What utilities are paid for by the apartment complex, which utilities must you pay for?
_______________________________________________________________________________
_______________________________________________________________________________
5) What are the move in costs (security deposit, 1st months rent, etc.)?
_______________________________________________________________________________
6) Does the apartment include any kitchen appliances? What about a washer and dryer?
_______________________________________________________________________________
_______________________________________________________________________________
7) What furniture must you buy to move into this apartment? What will that cost?
_______________________________________________________________________________
_______________________________________________________________________________
8) What will be your total costs for moving into this apartment?
_______________________________________________________________________________
9) Monthly Rental Payment ____________ Monthly Renters Insurance Payment ____________
Utilities Worksheet
1) Provide documentation for all of the utility bills you will have, these monthly bills will be an
estimate. These bills are variable from month to month so you will be providing an estimate
of your average monthly bill. Answer the following questions neatly in full sentences in blue
or black ink. You may want to make a copy of this sheet so you can make adjustments and
corrections to your information. Provide copies of bills when possible.
2) Gas/Heat – Company __________________________ Monthly Average Bill _________
Website: ____________________________________
3) Electricity – Company _________________________ Monthly Average Bill _________
Website: ____________________________________
4) Telephone – Company _________________________ Monthly Average Bill _________
Website: ____________________________________
5) Garbage – Company ___________________________ Monthly Average Bill _________
Website: _____________________________________
6) Water – Company _____________________________ Monthly Average Bill _________
(if applicable – most apartment complexes pay for water)
Website: _____________________________________
You can find out who your utility providers be by calling or visiting the rental office of your
chosen apartment complex. Providers will vary depending on the complexes location.
Total Food/Groceries Worksheet
1) Groceries -- Since everyone's eating habits are different and depending on how often you eat
out or eat at home, this amount will vary. There are many websites available that you can use
to estimate your monthly food bill based on your individual eating habits. Answer the
following questions neatly in full sentences in blue or black ink. You may want to make a
copy of this sheet so you can make adjustments and corrections to your information. Provide
copies of bills when possible.
2) Make a list of items you are going to buy and total up the average monthly price for groceries
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Total: __________________
IMPORTANT – You can buy more if you use coupons. Cut out coupons or make copies of
coupons and attach them to your packet.
3) Dinning out – You will be dining out, and it is typically more expensive, but most of you
will eat out more now without your parents to cook for you. List where you will eat, how
often per month and what your meals will cost you.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Total: ___________________
Transportation Worksheet
1) Transportation -- If you already own your own car, you probably have your parents to thank
for that. However you now must pay for your own insurance and gas as well as maintenance
costs each month. If you don’t have your own car, you must now buy one and figure that into
your monthly budget. Your transportation budget should be approximately 10 to 15% of your
monthly budget. Answer the following questions neatly in full sentences in blue or black ink.
You may want to make a copy of this sheet so you can make adjustments and corrections to
your information.
2) What type of car? Make, model, year _________________________________________
_________________________________________________________________________
3) Websites Used _____________________________________________________________
4) Monthly Payment _________________________________________________________
5) Gas/Oil/Maintenance________________________________________________________
6) Car Insurance _____________________________________________________________
7) Websites used ______________________________________________________________
8) Gasoline bill per month ______________________________________________________
One time Gift Work Sheet
Your parents are happy to see you leave!!!! Just kidding. They have been putting money aside for you and
have a 1 time gift of $5000. You may use this money any way you like as long as it fits into one of the
categories used in this packet. You must document use this money down to the dollar.