Name:____________Kara Cozette__________________

Date:________________________________
November 16
Class Period:__________________________
7

1. Strive to save 10% of your net income. Rent/Mortgage should be no more than 28% of net income. Your
car payment, insurance and gas should be no more than 28%.
2. Calculate what % of net income the following represent: Savings, Fixed, Variable, and Discretionary, and
TOTAL Expenses
Income or Expense
INCOME

Estimated Amount

% of Net Income

Gross Monthly Income

$4,666

25% Taxes
NET INCOME

$1,167
$3,500

EXPENSES
Total Savings

$348

go to http://stats.bls.gov/search/ooh.asp?ct=OOH (Occupational Outlook

Handbook) and search for a career; look up beginning salary
Multiply beginning salary by .25 to find out monthly taxes withheld from each
paycheck
100% subtract taxes from gross income to find net income

10% You must save 10% of your net income

Fixed Expenses
Rent

$1,405

Rent should be no more than 28% of net income; www.rent.com, www.

40% apartments.com, check to see if utilities are included
www.autotrader.com, www.cars.com, Assume you put 10% down payment; http:
//www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full (assume 5
yr/Interest Rate: A-4% B-6% C-8% D-10% F-20%)

Car Payment
$282
Car Insurance
Cell phone

$300
$18

8%
Car payment, insurance and gas should be no more than 28% of net
8.50% income; estimate $300 biannually for insurance
Find a provider and get a plan that fits your budget. Click on the link to find your
0.50% planCell Phone Plans
http://mappingyourfuture.org/paying/standardcalculator.htm

Student Loan (what is the going rate of interest)

Total Fixed Expenses
Variable Expenses
Electricity or Gas

Gasoline
Groceries
Car Maintenance
Car Repairs
Laundry/Dry Cleaning
Total Variable Expenses
Discretionary Expenses
Books, Magazines, I-Tunes, Apps
Personal Grooming
Clothes
Charitable Contributions
Gifts
Health Club Membership
Eating Out
Movies and Videos
Sports
Concerts and Plays
Vacations
Cable/Internet Access
Pets
Total Discretionary Expenses
TOTAL EXPENSES

$211
$2,216

$83

$95
$251

6%
63%

0.50% Average for a single adolescent.

look up the average cost per gallon and estimate how far you will be driving on a
monthly basis (miles); may depend on where you plan to live and where you plan
2.70% to work
7% Average for a single adolescent.

$20

0.50% What is the cost of an oil change?

$80
$0
$529

2% Buy a set of tires for your car.

0% Average for a single adolescent.
21.7

Must choose eight (8) of the following

$6
$19
$100

$20
$75
$8

$110
$42
$308
$3,401

0.20% Sports Illustrated, GQ, People,

0.50% Find out how much it cost to get your hair done or cut
3% Gap, Aerostposle, American Eagle, Champs, Etc
Church tithes usually 10%, United Way,
Birthdays, Anniversary, Weddings, graduations
0.50% Ballys, LifeFitness, Xsport, L.A. Fitness
2.00% McDonalds, Burger King, Pizza Hut, White Castles, Applebees, Outback, etc
0.20% Blockbuster, Netflix, Movie Theater, On Demand
Club Sports, softball team, flag football, basketball league, etc
Great America, Wisconsin Dells, Florida, Cancun, etc
3% Comcast, Direct TV, Dish Network, Verizon Wireless & etc.
1.00% How much is that going to cost you?
7%
97%

AT&T

Verizon

Cell Plans

http://www.finaid.org/calculators/loanpayments.phtml

NET INCOME

$3,500

TOTAL EXPENSES
BUDGET SURPLUS OR DEFICIT

$3,401
$99

100% Copy net income to here

97% Add up Savings, Fixed Expenses, Variable Expenses, and Discretionary Expenses
Subtract Total Expenses from Net Income

Interest Rate: A-4% B-6% C-8% D-10% F-20%