Friday, January 22, 2016

Creating a Budget MAJOR PROJECT

This assignment is due on Friday January 20, 2017. It is a major part of your grade. Do not get a "0."

Creating a Budget Assignment

Congratulations! You just graduated college and you are finally living on your own. Your annual salary is $30,000. You will need to learn to manage your money and maintain a monthly budget.  You will receive a paycheck each month and you must pay a variety of bills including cable, electricity, car payment, car insurance and rent.  Your budget should also include money for food, gas, and entertainment.  You also must save 5% of your monthly salary.

After each step, plug in your amount in your spreadsheet

Step 1:  Calculate your net income and estimate what you think your budget will be.  Remember, your gross income is $30,000.  Assume that you pay 20% of that for taxes.

Using Google Spreadsheet or Microsoft Excel, calculate your net income and plug in your estimates.  Print this page after it is completely filled out. Here is a sample template that you may use.  Budget Template

Step 2:  Now find a place to live.  You may choose to live by yourself or with a friend.  If you choose to live with a friend, you must find a two bedroom apartment.  Each person must have their own room.  Once you find your apartment, print the page that lists the apartment and the price.  Type your price into your spreadsheet. It doesn't matter what town you live in. Research this online or in the newspaper ads.

Step 3:  Now find a car that you consider reliable.  It needs to be something you would want to drive and it can not have more than 60,000 miles.  You will make payments on this car for five years.  Once you find your car, print the page that lists the price of the car and a picture of a car.  You must calculate the car payment using the car payment spreadsheet.  Plus this amount into your spreadsheet.

Step 4:  Next, find car insurance for your specific car.  Once you find insurance, print the page that lists the amount of insurance.' You may use this following link, or you may use your own.


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Step 5:  Calculate the cost of gas for your car using the car gasoline spreadsheet:

Step 6:  Online Grocery Shopping:
Before you shop for groceries, plan for what meals you think you will be eating.  Plan for two weeks 
worth of meals.  Use this format:

Monday morning cereal
Monday afternoon sandwich and chips
Monday night spaghetti

Print your menu! Then, use this website to search for the items needed for your menu: 

While shopping for groceries, you also need to buy essentials such as shampoo, deodorant, soap, laundry detergent, etc.  When finished shopping, view cart.  Print this page (do not place order). 

This is your amount on groceries.  Multiply this amount by 2 and plug into your spreadsheet.

Step 7:  Estimate the amount you will spend on eating out. This amount depends on your individual wants.

Step 8:  Now, comparison shop for TV entertainment. You need to use a service provider in the town that you choose to rent in. Compare 3 different providers. Print out the cost of these three.

Service providers ideas: Charter, Direct TV, DISH, Netflix etc.

Step 9:  This step is a home phone. I no longer require you to find a home phone, but you have the option to include it if you believe that a home phone is something you would want.


Step 10:  Research the price of cell phones and find a phone plan that you would like.  Print your resource and plug this amount into your spreadsheet.  (YOU MAY NOT USE YOUR PARENTS ANYMORE.  YOU ARE ON YOUR OWN.)

Step 11:  Now complete your spreadsheet by asking your parents or another adult what their average costs are for the remaining categories.  
  • Estimate amount as an estimate for health insurance
  • Estimate amount for power and water.
  • Estimate what you think you will spend on clothing.
  • Estimate what you think you will spend on entertainment (movies, bowling, etc).
  • Estimate what you think you will spend on charitable contributions.

  • You must save at least 5% of your monthly salary.

Step 12:  Print your completed budget.  

Step 13:  Create a pie chart sheet that will graph your spreadsheet.  
(Chart the categories and the actual budget).   Print it!

Step 14:  Type a report using Google Docs or Word explaining what you learned by creating your budget.  Your report must be between 150-200 words.  You may discuss your living conditions, car, etc.
I will read it and your grammer will be graded. Capitals at the beginning of your sentences and punctuation at the end. Please do not use run on sentences. I am not an English teacher, but I do know basic writing and I expect you to use it while you write.

Step 15:  Create a cover page for this Creating a Budget Assignment using Google Docs or Word.

Step 16:  Turn in ALL handouts.  This assignment is worth 250 points.  

Budget Rubric
Points Possible
Points Awarded
Cover Page

Estimated Budget

Rent Resource

Car Resource

Car Payment Resource

Car Insurance Resource

Car gasoline resource

Phone Resource

Cell Phone Resource

Television Entertainment Resource



Actual Budget





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