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

2. 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.

3. 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.

4. 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.

5. 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.

6. Careers
Teacher
Marketing
Pilot
Advertising

7. Careers
Construction Management
Nurse
Lawyer
Architect

8. Careers
Accountant
Physician
Engineer
Veterinarian

9. Careers
Landscape Architect
Financial Advisor
News Anchor
Chef

10. Careers
Scientist
Police Officer
Realtor
Fire Chief

11. Careers
Dentist
Judge
District Attorney
Surgeon

12. Careers
Lead Mechanic
Computer Technician
Social Worker
Hair Stylist

13. Careers
Heating and Air Tech
Painter
Plumber
Office Manager

14. 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.

15. 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 ________________

16. 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.

17. 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
Houses for Sale in Savannah
Houses for Sale in Denver, CO-Silicon Valley

18. 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 _______

19. 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.

20. 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.

21. Cars Honda Accord EX-L Navigation Lexus SUV Chevy Tahoe LT Premier
$73,746
$33,860
Chevy Tahoe LT Premier
BMW 4 Series 430i convertible
$69,280
$53,260

22. 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
2012 Ford Escape XLT SUV Miles:
2011 BMW 5 Series 535i Sedan Miles: 57,105
$13,490
$18.955

23. 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 __________

24. (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.

25. Example of the
Food Shopping List

26. (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.

27. Example of the
Monthly Budget Chart

28. 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.

29. Example of the Hand-In
Check List

30. 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.