1. MANAGING YOUR MONEY Budgeting for the Real World 1

2. How do you spend money? ? ? ? 2

3. Words to Know INCOME Amount of money earned from wages or other sources BUDGET A plan to cover expenses with available income 3

4. Opportunity Cost vs. 4 Party Shop Study/Work Bills/Expenses

5. U.S. Average Income PAY STUB Annual Gross Income$35,950 Annual Taxes$5,498 Annual Healthcare$698 Annual Net Income$29,556 Monthly Take-Home Pay$2,463 5

6. Monthly Budget Worksheet 6

7. Housing Options Live at Home $250 2 Bedroom Apartment/Roommate $650 Studio Apartment/ Living Alone $1,000 25 – 30% of Income 7

8. Household Expenses 5% of Income At Home $0 With Roommate$75 On Your Own$100 At Home $0 With Roommate$40 On Your Own$80 At Home $0 With Roommate$20 On Your Own$40 Talk and Text$40 Talk and Text and 3 GB Data$65 (essential) (optional) Cable 8

9. Transportation Options Used Car Monthly $175 Insurance $50 Gas $100 Maintenance $50 Public Transportation Monthly $150 New Car Monthly $270 Insurance $70 Gas $100 Maintenance $25 15% of Income 9

10. Food Options Groceries $200 Groceries $150 Eating Out $200 Eating Out $525 15% of Income 10

11. Entertainment Options Movie Download $7 Date Night $100 Travel $100 Hobbies $100 Sports Game $60 Concert $60 Movie in Theater $15 5 – 10% of Income 11

12. Looking Good Options 5% of Income 12 Shirt $25 Pants $25 Shoes $50 Toiletries $20 Haircut $30 Other ?

13. Savings 10% of Income Pay Yourself First $246 13 BANK

14. Recommended Budget 14 5% Debt Payments Healthcare Clothing Utilities Savings Entertainment and Discretionary Transportation Food Housing (credit cards, student loans) 5% 10% 15% 30%