Mrs. Taylor REP 6-8 2017-2018 Rice Creek School Real Life Budgeting Mrs. Taylor REP 6-8 2017-2018 Rice Creek School

A note to remember… You are taking on this adventure as a single person. It may be that you choose to be married to live out your dream of your real life budget. If that is the case, try everything as a single person first then I will show you how to adjust your spreadsheets in excel to include a partner.

Budget Math Project You have been working hard to save money for the past 5 years. Now, you are ready to buy a house and car and get out on your own. The money you have saved is going to go towards the down payment of your house and car. Please go to Rice Creek home page and download the three documents labeled Budget Math Project, Stock market. The PowerPoint is the directions which you will have a packet you leave in class daily to look at. You will complete each of the tasks on the next page.

Part 1- Career Choose a career from the examples or what you think you might like to do. Go to the internet and google it. Example: average teacher salary in Savannah, GA. That is the amount of GROSS money you will make in 1 year.

What do you want to do in life? Be sure to research average income for the state you would like to live in. Teacher average pay may be more in Connecticut then in Georgia.

Careers Teacher Marketing Pilot Advertising

Careers Construction Management Nurse Lawyer Architect

Careers Accountant Physician Engineer Veterinarian

Careers Landscape Architect Financial Advisor News Anchor Chef

Careers Scientist Police Officer Realtor Fire Chief

Careers Dentist Judge District Attorney Surgeon

Careers Lead Mechanic Computer Technician Social Worker Hair Stylist

Careers Heating and Air Tech Painter Plumber Office Manager

Part 2- Taxes Out of every persons paycheck comes taxes. Use the Expense chart to find the amount of money that will be taken out of your check for each tax and how much money you will have remaining. That will be your NET paycheck.

Taxes (See Excel Spreadsheet) Annual Income ________________ Federal Tax ________________ 25% of annual income if you make $36,900-$89,350 28% of annual income if you make $89,350-$186,350 33% of annual income if you make $186,350- $405,100 State Tax ________________ Local Tax ________________(Estimate to be 2.45% of annual income ) Healthcare ________________ (Estimate to be 2% of annual income ) Add B, C, D and E ________________ Subtract A- F. = Yearly Income ________________ Divide G by 12 = Monthly Income ________________

Pick a House You may still have to rent but let’s try to buy a house. The 20% down you have already saved so it will be subtracted from the total amount of the car. Remember to be sure to pick a place to live in the state you decided to work in when you picked your career.

Part 3- House Where are you going to live? Based on your monthly income, determine which type of house you can afford. Will you rent, own, or even live in Georgia. Rentals in Savannah https://www.zillow.com/savannah-ga/rentals/ Houses for Sale in Savannah https://www.zillow.com/savannah-ga/ Houses for Sale in Denver, CO-Silicon Valley https://www.zillow.com/co/

House (See Excel Spreadsheet) Price of House ________________ Down payment of 20% ________________ Subtract A-B Money to borrow from the bank ________________ Estimate interest- Principle ($ borrowed) x rate (4.5%) x time (30 years) _________ Add the interest (D) to Money borrowed (C). ________________ Divide step E by 360 to find your mortgage for 30 years _______

Pick a car It would be nice to have a brand new expensive car but is that reasonable? Insurance is higher for a new car and the down payment is larger.

Part 4- Car What are you going to drive? Based on your income, determine what kind of car you can afford to buy. Will you lease a car? How many miles will you drive to and from work. Will you buy the car? How much do you have to put down? What is your credit score? Please see the cards for types of cars and websites to visit.

Cars Honda Accord EX-L Navigation Lexus SUV Chevy Tahoe LT Premier $73,746 $33,860 https://www.graingerhonda.com/vehicle-details/new-2018-honda-accord-sedan-ex-l-2-0t-auto-1HGCV2F5XJA000775 https://www.chathamparkwaylexus.com/new/LEXUS/2018-LEXUS-GX-285ec55c0a0e0adf437566684cac5a2f.htm Chevy Tahoe LT Premier BMW 4 Series 430i convertible $69,280 $53,260 https://www.critz.com/new/BMW/2018-BMW-4+Series7dc4c7bb0a0d0cc74201839ad719ee5e.htm http://www.danvadenchevrolet.com/VehicleDetails/new-2018-Chevrolet-Tahoe-2WD_Premier-Savannah-GA/3191694183

Cars 2015 Miles: 54,065 2015 Ford Focus SE Sedan Miles: 22,621 Honda Civic Sedan LX 2015 Ford Focus SE Sedan Miles: 22,621 $14,448 $14,965 https://www.graingerhonda.com/vehicle-details/used-2015-honda-civic-sedan-lx-19XFB2F56FE051361 https://www.graingerhonda.com/vehicle-details/used-2015-ford-focus-se-1FADP3F27FL238576 2012 Ford Escape XLT SUV Miles: 48.553 2011 BMW 5 Series 535i Sedan Miles: 57,105 $13,490 $18.955 https://www.graingerhonda.com/vehicle-details/used-2011-bmw-5-series-535i-WBAFR7C58BC804996 https://www.graingerhonda.com/vehicle-details/used-2012-ford-escape-xlt-1FMCU0DG2CKB84256

Car (See Excel Spreadsheet) Price of Car ________________ Down payment of 15% ________________ Subtract A –B Money to borrow from the bank ________________ Estimate interest- Principle ($ borrowed) x rate (4.5%) x time (5 years) _______ Add the interest (D) to the money borrowed (C) __________ Divide step E by 60 to find your monthly car payment for 5 years __________

(See Excel Spreadsheet) Part 5- Food Shopping (See Excel Spreadsheet) Use the laptops to go food shopping at a local supermarket. Make a shopping list with the prices of each item to estimate the amount of money you will spend on food in a month.

Example of the Food Shopping List

(See Excel Spreadsheet) Part 6- Monthly Budget (See Excel Spreadsheet) Use the monthly budget chart to determine how much money you will spend on various expenses each month.

Example of the Monthly Budget Chart

Part 7- Hand-In Check List See Excel Spreadsheet Use the checklist to make sure you have completed all the requirements. Staple everything together and hand in your work to your teacher.

Example of the Hand-In Check List

When All Excel Spreadsheets are completed… You will submit the excel spreadsheet to me. Be sure to save your work every so often and at the end of each day you are working on the spreadsheets.