Student handout

Student handout: Common cents

This activity assumes that you have moved into your own place and have basic furniture (bed,
dresser, table and chairs, dishes and cookware, sofa and a television). Based on the sample, work
out your own budget using the information acquired from your research on average expenses.

Sample
Income:
Hourly rate $12 x 40 hrs/week = $480.00/wk
Gross monthly income (4.5 wks) = $2160.00
Less federal* and provincial tax**:
$334.80 (fed) + $120.00 (prov) = $454.80
Monthly net income = $1705.20
* Using 2006 figures, federal tax on taxable income below $36,378 is 15.5%. Provincial rates vary but average
9% of taxable income, which is derived after basic deductions are declared. Taxes will be deducted
automatically from each paycheque, but with income at this rate it will be recoverable upon filing the annual
income tax return.
** For the purposes of this activity, a round figure has been chosen that approximates the percentage of
provincial taxes to be paid.

Monthly Net Income $1705.20

Monthly Expenses Balance:
Rent, which includes utilities $700 $1005.20
Groceries (1 person) $500 $505.20
Transportation (monthly bus pass) $63 $442.20
Laundry (3 loads/wk at laundromat) $96 ($24/wk) $346.20
Telephone $65 $281.20
Cable TV $50 $231.20
Internet access $40 $191.20
Savings (for emergencies, furnishings, vacation) $50 $141.20
Other expenses to be considered are: credit card payments/
loans, annual dental exam, medication when required,
furnishings, entertainment, clothing, gifts, travel.
 Student handout

My budget
Income:
Hourly rate x hrs/week =

Gross monthly income (4.5 wks)=

Federal tax (15.5%) =

Provincial tax* (9%) =

Net monthly income =

*For the purposes of this exercise determine your provincial tax by finding 9% of your gross monthly
income minus federal tax.

Monthly Net Income

Monthly Expenses Balance:

Rent, which includes utilities

Groceries (1 person)

Transportation

Laundry

Telephone

Cable TV

Internet access

Savings (for emergencies, furnishings, vacation)

Other expenses to be considered are:

credit card payments/loans, furnishings,
entertainment, clothing, gifts, travel

WARNING: INCOME MUST EXCEED SPENDING!