1. Personal Budget Activity

2. Personal Budget Reminder If HOURLY RATE is given: HOURLY RATE * 40 HOUR WORK WEEK = WEEKLY SALARY WEEKLY SALARY * 4 WEEKS IN A MONTH = MONTHLY INCOME! If YEARLY SALARY is given: YEARLY SALARY / 12 MONTHS IN A YEAR = MONTHLY INCOME

3. Personal Budget Reminders Follow the EQUATIONS on the worksheet in order to figure out your NET PAY for the month. RECORD your PAYCHECK DEPOSIT (NET PAY) as the first transaction in your CHECK REGISTER.

4. Housing Visit www.apartmentfinder.com and locate an apartment that will meet your living requirements.www.apartmentfinder.com  ie: if you have 2 children, you must have a 3 bedroom house, if you have 2 other roommates you must have at least a 3 bedroom house.

5. Reflection Questions for TODAY: 1.Why did you chose the apartment that you did? 2. How much money do you have left over from your net pay after you pay rent? Using one of your checks write a check for your rent amount to the apartment complex and complete your check register.

6. Purchasing a Car Visit the following websites and locate a new or a newer used vehicle. www.autotrader.com www.carmax.com Once you have located your car find a website that will allow you to finance the vehicle, in order to figure out your monthly payments. www.bankrate.com

7. Purchasing a Car Using the banking website, determine the your monthly car payment. Record the monthly payment for your vehicle in the space provided.

8. Purchasing a Car Visit car maintenance websites, such as AutoZone, Meinke, or Wal-Mart. Research the cost for a routine maintenance exam, such as new brake pads, new tires, or an oil change (the choice is yours) and record the price in the appropriate place.

9. Purchasing a Car Determine if your car is a classified as sports, sedan, truck, or mini-van and record the corresponding insurance amount in the appropriate place.

10. Miscellaneous Fixed Expenses Savings Estimate how much money you can afford to set back into savings each month for your children’s expenses, retirement, etc.  Remember $4 a day from the age of 16 will make you a millionaire by the age of 65.

11. Miscellaneous Fixed Expenses Rainy Day Fund Estimate the amount of money you are willing to set back for emergencies only, such as: getting fired or laid-off, a fire or tornado, or your radiator is busted on your vehicle.

12. Total Fixed Expenses Add all fixed expenses: rent, car insurance, savings, rainy day fund, etc.

13. Reflection Questions for TODAY: 1. Describe the car you chose to purchase, such as: year, make, model, and special features, etc. Write a check to Moore Automotive for the your June car payment and complete your check register.

14. Flexible Spending Visit www.meijer.comwww.meijer.com Select the Weekly Ads link at the top of the website Locate the state of Kentucky and a Meijer in Louisville, KY Browse through the grocery ad in order to locate the food items on your worksheet.

15. Flexible Spending Add the total amount of the cost of food and record that number in the appropriate field.

16. Flexible Spending Using Meijer’s grocery store ad estimate the cost you would spend in a months time on personal and household items such as: toilet paper, paper towels, shampoo, soap, etc. and record that amount in the appropriate fields.

17. Flexible Spending Using the internet, find the cost for the clothing, entertainment, and other personal items that you would normally spend in a months time.

18. Reflection Questions for TODAY: 1. How much money did you spend on groceries for the month. Is the number comparable to what you believe your parents spend on groceries. Write a check to Meijer for the amount of your groceries for 1 week and complete your check register.

19. General Instructions Using the Monthly Budget Summary (last page) record the information from the previous activities in the appropriate section.  There is very little additional math needed during the budget summary.

20. Gross Income Record your GROSS income from the career section Record the total amount of DEDUCTIONS (taxes, medical, and retirement). Record your NET PAY (your monthly pay AFTER taxes)

21. Fixed Expenses Record the amount that you spent on:  Rent  Utilities  Renter’s Insurance  Monthly Car Payment  Car Insurance  Savings  Rainy Day Fund Add ALL of your FIXED EXPENSES together

22. Flexible Expenses Instructions Record the amount that you spent on:  Food  Household Items  Personal Items  Clothing  Entertainment  Transportation  Gifts  Miscellaneous Items Add ALL of your FLEXIBLE EXPENSES together

23. TOTAL EXPENSES Add your TOTAL FIXED and FLEXIBLE EXPENSES together and record that amount in the appropriate spot.

24. FINAL AMOUNT Subtract your TOTAL EXPENSES from your NET INCOME, to determine the total amount of money you have left over or your insufficient funds. NET INCOME – TOTAL EXPENSES = MONEY LEFTOVER or INSUFFICIENT FUNDS

25. NOW WHAT? If you had INSUFFICIENT FUNDS (a negative number) you will need to rework your budget.  This might mean you have to eliminate your entertainment or clothing budget. BE SURE TO LOOK IN YOUR FLEXIBLE spending and eliminate any UNNECCESSARY items. Once you have a positive number proceed to the next slide.

26. NOW WHAT? If you received a POSITIVE number and have money left over then answer the following questions on the next slide on a BLANK SHEET OF PAPER that will be stapled to your packet!

27. Reflection Questions for TODAY: 1. Explain the outcome of your budget. Did you have to rework your budget multiple times? Was it easy to determine your budget or did you constantly have to consider how much money you had in the bank? What would you change about your budget if money was not an issue?

28. FINAL STEPS Staple your BUDGET JOURNAL, REFLECTION QUESTIONS from TODAY, CHECKBOOK and REGISTER to your BUDGET PACKET and turn into the tray.

29. Personal Budget Reminders If you finish – YOU MAY VISIT only the following sites and play games:  www.practicalmoneyskills.org www.practicalmoneyskills.org  www.ItAllAddsUp.org www.ItAllAddsUp.org  www.studentcenter.ja.org www.studentcenter.ja.org