It is time to begin our Budget Project! Please down load the following material and save it in your folder. You will save all work in your folder – this way it is always accessible to you in class.
Your project is due Friday, March 14, 2014. It will no be accepted late – Friday is also the end of Marking Period 1.
Are you ready for the real world? Complete the steps listed below to see if you are ready to move out and live on your own. What are you doing NOW to prepare for TOMORROW? Think about your wants and your needs and get excited – this is your life to live!
To make this as realistic as possible, choose 1 of 2 options:
- Option 1 – create a budget as if you were moving out immediately after high school, getting a job and supporting yourself (choose a job accordingly).
- Option 2 – create a budget as if you just accepted a position in your desired profession after attending college or a trade school.
1. Choose a Career and Determine Your Income
Use the links listed below to gather information about a career that most interests you and then complete the “Get a Life” worksheet.
I do not know what I want to be when I grow-up. — find a career here.
I know what I want to be when I grow-up. — enter your chosen career in the search box.
Get a Life – complete worksheet and print when finished.
2. Breakdown Your Budget
Open the link to the budgeting spreadsheet to estimate expenses for your proposed budget; use income based on your chosen career from Step 1. The right side of the page will give you directions for the spreadsheet – do not spend more than you earn and make this as realistic as possible. Use the average percentages as a guide and just adjust accordingly if you need to stray from the normal amounts. Nobody can tell you how you have to spend your money (except the government)… but I will not allow you to go into debt.
3. Find a Home
Assume that you will be living in the New York area. Utilize the list of websites below to help you find a place to live. If you cannot afford the apartment of your choice, roommates are always an option (you will need to adjust your spreadsheet so that you only pay your portion). Print a copy or take a screen shot of the apartment page that details the specification for your new home.
Down payment is 20% of the total cost.
Find the information for the following and decide which mortgage fits your budget:
15-year mortgage term with a 3% interest rate
.20-year mortgage term with a 6% interest rate
30-year mortgage term with a 5% interest rate
4. Find a Car
Part 1 — Congratulations, you have saved a total of $1,000 to put toward a car. Let’s start shopping for a new or used car (depending on your budget). You must purchase a car even in you have one or if someone is giving you a car. Also, now that you have a job, you need reliable transportation – your car must cost at least $7,500. Print the information page that includes the cost of the car and any fun features.
Part 2 –Compute monthly payments for your car loan and print (or screen shot) the calculations page showing 2 options your have in regards to term length.
Use the following information for your calculations:
Loan Amount = cost of the car you want to purchase minus the $1,000 you are using as a down payment (minimum is $7,500)
Interest Rate = 9.0%
Auto Loan Calculator: https://www.chase.com/auto-loans/payment-calculator
5. Analyze Your Budget
Is it all falling into place just yet? Lets double check a few things and make sure you are ready for the real world.
Analysis of My Budget – complete worksheet and print when finished.
6. Hand-in all materials to your teacher (1-5 in order):
- Get a Life worksheet
- Budget Spreadsheet — your packet will not be graded if you are in debt.
- Apartment specifics
- Car details AND payment calculations
- Budget analysis worksheet
*You should take screen shots of your home and car. There is a step-by-step guide for screen shots at the bottom of the post.