1. ***SAVE EVERYTHING YOU *** COPY/PASTE WEBSITE LINKS FOR YOUR POWERPOINT PRESENTATION PowerPoint Presentation Instructions

2. Introduction A budget is a plan for using your money in a way that best meets your needs and wants- it is the first step toward financial success. A budget is all about making your own choices. By using a budget you will learn how to live within your income, avoid running out of money between paychecks, evaluate your spending habits, make wise spending choices, set aside savings for unexpected expenses, and develop good money management skills that will help you reach your financial goals.

3. Objective The purpose of this Personal Budget PowerPoint is to help you develop an awareness of the process of preparing a practical budget, develop an awareness of how much things really cost, and demonstrate how using a budget will help you achieve your personal and financial goals.

4. STEP 1: Estimate Your Income Knowing how much you earn each month is an essential part of creating a realistic budget. How much you earn depends on your occupation. You will be completing the PowerPoint for your first job- either after you graduate from 4 years of college, complete a 2 year associate degree, or enter the world of work after graduation from high school. If the career you choose requires a masters or doctorate degree, we will use modified amounts to reflect a salary after 4 years of education. Sooner or later you will need some sort of job to start paying bills.

5. STEP 1 Directions 1. Use the Occupational Outlook Handbook (http://www.bls.gov/oco/home.htm), to find your intended occupation and the amount of income you can expect to earn in that occupation. Type your job title in the Search the Handbook box.http://www.bls.gov/oco/home.htm 2. Print the page which shows your expected income level. (Place in your folder). 3. Highlight the salary range you will be using for your budget. Using the lowest amount in the salary range, enter the annual starting salary for your first job on the Monthly Budget Worksheet.Monthly Budget Worksheet 4. Take 15% taxes out of your monthly paycheck. Example: (#4)Base Salary: $40,000 x.15 = $6,000 $40,000 - $6,000 = $34,000 Salary After Taxes: $34,000 (This is the amount you enter on your Monthly Budget Worksheet)

6. STEP 2: Budgeting for Expenses (Housing) Expenses are money you spend on things you need and want. A need is something you must have to survive, such as food, shelter and clothing. A want is something you desire or would like to have or do. For example, if you live in Wisconsin, you need a coat. You may want a leather jacket, but other types of coats could also keep you warm. Fixed expenses- expenses that do not change from month to month. Housing Expense: Housing will probably be the largest expense in your budget. Experts recommend 25- 30% of your net monthly income will be allocated to your housing expense.

7. STEP 2 Directions To determine your housing expense, click on www.realtor.com or www.homeseekers.com to find an apartment or house which will fit into your budget. Print a copy of the page you visited to support your deduction.www.realtor.com www.homeseekers.com ** Remember to save this site to get information for your PowerPoint** Find Monthly Payments:  Go to www.Yahoo.com.www.Yahoo.com  Click on Real Estate on left side of your screen  Scroll half way down the page and fill in the Mortgage Payment Calculator Loan Amount ONLY (this is the cost of your house)  Click calculate  Print out this page  Insert your estimated monthly payment into your Monthly Budget WorksheetMonthly Budget Worksheet  Copy/Paste the graph into your PowerPoint presentation

8. STEP 3: Budgeting for Expenses (Car) For purposes of this PowerPoint, you will assume you need to buy a car to provide reliable transportation for work. To help you decide what type of an automobile will meet your needs:  Review the worksheet Choosing A Car That’s Right For You.Choosing A Car That’s Right For You  Answer all of the questions on this sheet. Using the advice from the worksheet, determine the type of car which will best meet your needs.

9. STEP 3 Directions Go to http://www.autoweb.com/, Edmunds.com, or http://autos.msn.com/Default.aspxhttp://www.autoweb.com/ http://autos.msn.com/Default.aspx Choose a car that matches your budget Print a copy of the car you desire to purchase (copy down the price of the car). After you have selected your car, to Yahoo! Autos Car Loan Calculator (http://autos.yahoo.com/finance/)http://autos.yahoo.com/finance/ Click on the grey Calculate Payments box on the right side of your screen  Fill in Negotiated Price (this is the price of the car you picked)  Fill in sales Tax: 7%  Fill in Term: 48 months  Fill in Interest Rate: 7%  Down Payment: $500  Trade-in value: Leave Blank  Rebates: Leave Blank Print a copy of your calculation to support your deduction Enter the amount of your monthly payment on your Monthly Budget WorksheetMonthly Budget Worksheet

10. STEP 4: Budgeting Expenses (Car Insurance) Directions Go to Yahoo! Auto Insurance (http://insurance.yahoo.com/a/a1.html)http://insurance.yahoo.com/a/a1.html Complete the brief form provided to determine the approximate cost of your auto insurance. Print the quote to support your deduction Use the national average and divide the annual amount by 12 to convert to a monthly amount (show the calculation on your print out) Enter the monthly premium amount on your Monthly Budget Worksheet. Monthly Budget Worksheet

11. STEP 5: Budgeting for Expenses (Food/Dining Out Expenses) Variable expenses- change from month to month making these expenses more difficult to budget. To determine a reasonable expense level, you can follow the recommended percentages suggested by financial experts, refer to the Consumer Price Index (http://www.bls.gov/cpi/home.html), or talk to your friends and family to see how your spending compares with theirshttp://www.bls.gov/cpi/home.html Estimating food costs can be difficult, but keep in mind that you eat 3 meals a day and there are 30 days in a month. If you figure an average of $3 per meal, you would spend approximately $270 a month for food. Food costs should be about 10 – 15% of your net monthly income. Since everyone’s eating habits are different and depending on how often you eat out or eat at home, this amount will vary. To get a sense of the cost of food, go to the Capitol Centre Foods grocery link and shop for an average week’s groceries.

12. STEP 5 Directions Remember This Is Only A Week’s Worth Of Groceries Go to http://www.capcentrefoods.com/home.htmlhttp://www.capcentrefoods.com/home.html Click on Online Shopping Click on Sign In Type Email address: eallen@roxbury.orgeallen@roxbury.org Password: student Click Proceed Click on Grocery (on the left side of your screen) Example:  Click on Breakfast  Click on pancakes  Click on buy under the product you want to buy  **Notice it will show up in your cart with an updated price  Once you are done with your week’s groceries, click on check out  Copy/paste this list to your PowerPoint presentation or to a word document for future list  ***DO NOT SUBMIT YOUR ORDER***

13. STEP 5 Directions (cont.) 1. Print a copy of your shopping cart at check out to support the amount you enter on your Budget Worksheet 2. Multiply your result by 4 to get an amount for your monthly budget (show the calculation on the print out) 3. Determine an average monthly amount for dining out. Show this amount with an explanation of each amount on your Capitol Centre Food print out. 4. Enter an amount which you feel accurately reflects your monthly food costs on the Monthly Budget Worksheet.Monthly Budget Worksheet

14. STEP 6: Budgeting for Expenses (Utilities Expenses) You will need to budget for utilities, such as gas and electricity, telephone, cell phone, cable, water, etc. (Gas and electricity may already be included in your rent, but you will still be required to research this information. Be sure to make a notation on the final worksheet if the amounts are included in the rent.)

15. STEP 6 Directions Keep track of your Utilities Expenses on your Monthly Budget Worksheet. Monthly Budget Worksheet  Gas and Electric: $75/month  Water Bill: $40/month  Land/Cell Phone Bill: $175/month  Cable Bill: $50/month Enter the amounts for each expense on the Monthly Budget Worksheet. Experts suggest you should budget 5 to 10% of your net income for utilities. Monthly Budget Worksheet

16. STEP 7: Budgeting for Expenses (Entertainment Expenses) Including play in your life is important to help maintain a healthy lifestyle. Be sure to include leisure and recreation in your budget.  Enter $200 for entertainment expenses on the Monthly Budget Worksheet.Monthly Budget Worksheet  List at least 4 activities which you feel accurately reflect your entertainment needs on the Monthly Budget Worksheet.Monthly Budget Worksheet

17. STEP 8: Budgeting for Expenses (Travel Expenses) This includes routine travel, such as commuting to work; as well as pleasure or other long-distance travel. Transportation could include bus, train, or plane fare, or maintenance on your car and the cost of gas.  Enter gas price on the Monthly Budget Worksheet.Monthly Budget Worksheet  Car: $45/week  SUV: $65/week  Multiply the cost by 4 to calculate cost per month.

18. STEP 9: Budgeting for Expenses (Total Expenses) Add up all of your Monthly Expenses and enter total into your Monthly Budget Worksheet.Monthly Budget Worksheet Subtract the Salary After Taxes and the Total Expenses to see how much you saved Enter the total into the Monthly Budget Worksheet.Monthly Budget Worksheet

19. STEP 10: Budgeting for Expenses (Review and Modify) Did You Spend More Than You Earned? 1. To answer this question, you must verify that the amount of income is a positive number. If the income is a negative number, your total savings and expenses exceed the amount of your total income and you have spent more than you earned  2. If your spending exceeded your income, you must adjust the savings or expense amounts until your income is a positive number. Enter adjustment in the middle column of the Budget Worksheet. Do not change the original estimates. The amounts in the Final Budget Amount column should be updated. 3. Fill out the Review Worksheet given by teacher and answer the questions to summarize your PowerPoint results.Review Worksheet

20. PowerPoint Layout Slide 1: Cover Slide Slide 2: Description of person/family Slide 3: Cover Letter Slide 4: Resume Slide 5: Interview Script (pod cast) Slide 6: Job Description Slide 7: Housing Slide 8: Car/Insurance Quote Slide 9: Food with Grocery List Slide 10: Utilities Slide 11: Entertainment Slide 12: Travel Expenses Slide 13: Conclusion  Summarize Review Worksheet ***Your PowerPoint should be creative with many pictures and colors***