Student Name:
I.D. Number:
Project 3
Evaluation 33
BUSH 031 055 Winning in the Workplace
Be sure to include ALL pages of this project (including the directions and the assignment) when you
send the project to your teacher for grading. Don’t forget to put your name and I.D. number at the
top of this page!
Preparing a Budget
Imagine that you have graduated. You have been working at several part-time jobs and have been
living at home with your parents. You recently got hired for a full-time job, and you will be earning
$30,000 per a year. Your gross pay is $2,500 per month, and your net pay is $2,062 per month. You
are excited and figure you will have lots of extra money every month so you have decided to move
out on your own. Your parents are okay with you moving but have asked that you complete a budget
to make sure that you know what you are getting into. Complete each part of this project to
determine whether you are ready to support yourself.
This project will be worth 100 points. To see how your project will be graded, refer to the rubric
provided. Directions for online submission are provided at the end of the project.
Part A: Planning a Budget
Read about each of the items listed below and explain your plans for them.
1.
You have the choice of renting a one-bedroom apartment for $425 per month or a studio
apartment for $350 per month. Your renter’s insurance will be $10 per month. Which will you
choose and why? (3 points possible)
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2.
You think you will be spending $200 per month on groceries, which includes your cleaning
supplies and health products like shampoo and soap. Is this a reasonable amount? Why or
why not? (Feel free to do some research!) (3 points possible)
3.
You currently go out to eat 3 or 4 times per week for a total of $40 each week. Is this a
necessary expense? Why or why not? Can it be reduced or eliminated? (3 points possible)
4.
You treat yourself to a Starbucks’ latte twice a week, which costs $3.00 each time. Is this a
necessary expense? Why or why not? Can it be reduced or eliminated? (3 points possible)
5.
On the weekends, you have your friends over to watch games and movies, and you always
provide the pizza at $30. Is this a necessary expense? Why or why not? How could you
reduce or eliminate this expense? (3 points possible)
6.
Your monthly utility bills will be as follows: gas: $50, electric: $80. Water/sewer/garbage: $30,
cell phone: $80. How can you cut back on these bills if you need to? (3 points possible)
7.
Your parents helped you with a down payment on a new car as a graduation present, and
you are now making monthly car payments of $295. It costs you $50 a week for fuel. Are
these expenses regular or variable? Can you change these expenses? (3 points possible)
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8.
Car insurance costs you $85 a month with a $100 deductible. If you raised the deductible to
$500, your monthly premium would decrease to $65 per month. Which option will you
choose and why? (3 points possible)
9.
You have monthly charitable contributions of $100 per month (imagine a charity that is
important to you). Will you adjust this amount? (3 points possible)
10.
Before you got your job, your parents co-signed on a credit card for you. You took a
vacation, bought clothes for your new job, and bought a new computer. You now owe $1,800
and are making monthly minimum payments of $50. How long will it take you to pay off the
balance if you continue to make the minimum payments (the interest rate is 19.99%) and you
don’t make any more purchases? How long will it take if you make $100 monthly payments?
(HINT: Use a credit card calculator like http://www.bankrate.com/calculators/creditcards/credit-card-payoff-calculator.aspx# to find your answer.) (3 points possible)
11.
You have allergies and go to doctor for allergy shots, which costs $75 per month. You also
wear contacts that cost $100 per year. Your new employer gives you the option of a benefits
package that includes health, dental, vision, and life insurance coverage for $100 per month.
The health, dental, and vision portion of the insurance has a $350 deductible. Are you going
to opt in and take the employer-provided insurance? Why or why not? (3 points possible)
12.
You pay $7 per month for checks that you write from your checking account. Are there
options to reduce or eliminate this expense? (3 points possible)
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13.
Your cat, Spike, goes to the vet once a year for a cost of $85, and you spend about $40 per
month on food, litter, and cat toys. Do you have any other options to reduce the costs? (3
points possible)
14.
Cable TV will cost you $65 per month, and you rent a movie once a week for $3. You have
several magazine subscriptions that each cost $3 per month, and your Internet bill will be
$55 per month. Are these costs necessary and/or can you decrease them? If they are
necessary, why? If they are not necessary, are there other alternatives that cost less? Can
you live without any of these expenses? (3 points possible)
15.
You spend $500 a year on holiday and birthday presents for your friends and family. Is this a
reasonable amount? Why or why not? (3 points possible)
16.
Your health club membership costs $40 a month. You also buy $5 worth of lottery tickets
each week. Are these necessary expenses? Why or why not? (3 points possible)
17.
List at least four other expenses not described above that need to be considered as well.
You may want to consider an emergency fund, investing for retirement, college, vacations, or
a hobby or interest of yours. How much would you budget for these items on a monthly
basis? (12 points possible; 3 for each item)
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Part B: Preparing a Budget
Using your analysis from Part A, complete a budget form (use the form on the next page). Note a
monthly estimate for each expense. In real life, this kind of form will help you keep track of how
much money you can spend on each expense. (The budget form will be worth 10 points.)
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Preparing a Budget
HOUSEHOLD BUDGET FORM
Month______________ 20___
Expenditure
Estimated Income_____________________________
Estimate
Savings
Emergency reserve
Goals
Regular Expenses
Rent or mortgage payment
Utilities
Insurance
Auto payment
Credit or loan payments
Other ( )
Variable Expenses
Food and beverages
Clothing
Transportation
Household
Medical care
Entertainment
Gifts and contributions
Taxes
Other ( )
TOTALS
©2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part,
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except for use as permitted in a license distributed with a certain product or service or otherwise on a
password-protected website for classroom use.
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Part C: What Do You Think?
1.
Do you think you are ready to move out on your own? Write a summary of at least 200 words
that describes why you think you are or are not ready. This summary will be worth 30
points.
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GRADING RUBRIC FOR PROJECT 3
Category
Support of
Budget
Decisions
Excellent
All questions
regarding budget
expense
decisions were
answered with
well-developed
reasoning.
Realistic
All expenses
reflect an
understanding of
current costs.
Student was able
to use information
from lessons to
include 4 missed
expenses such as
college,
emergency fund,
hobbies, etc.
The completed
budget results in
at least $200
placed in savings
or reflected as net
income.
Calculations are
at least 90%
accurate, budget
is realistic and
savings evident
(emergency and
or other savings)
Additional
expenses
Income vs.
Expenses
Overall
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Good
All questions
regarding budget
expense
decisions were
answered but
lacking
reasonable
support for some
At least 75% of
expenses reflect
an understanding
of current costs
Student was able
to use information
from lessons to
include 3 missed
expenses such as
college,
emergency fund,
hobbies, etc.
The completed
budget results in
at least $100
placed in savings
or reflected as net
income.
Calculations are
at least 75%
accurate, budget
is realistic and
savings evident
(emergency and
or other savings)
Fair
Some questions
regarding the
budget expenses
were not
answered and/or
lacking
reasonable
support.
At least 50% of
expenses reflect
an understanding
of current costs
Student was able
to use information
from lessons to
include 2 missed
expenses such as
college,
emergency fund,
hobbies, etc.
The completed
budget results in
a balance of net
income equaling
expenses.
Calculations are
at least 50%
accurate, budget
is realistic and
savings may or
may not be
evident
(emergency and
or other savings)
Poor
Little attempt
made at
answering the
questions
regarding the
budget items.
Less than 50% of
expenses reflect
an understanding
of current costs
Student did not
include any
additional
expenses such as
college,
emergency fund,
hobbies, etc.
The completed
budget results in
expenses greater
than net income.
Calculations are
at less than 50%
accurate, budget
is unrealistic and
little or no savings
evident.
BUSH 031 055
Summary
Student evaluates
budget and
makes decisions
with welldeveloped
reasoning.
Student cites
examples in the
budget as
evidence for
decision about
whether to move.
Student makes a
logical argument
about whether he
or she is ready to
move.
Student provides
an opinion of
whether he or she
is ready to move,
but reasons are
more general
instead of being
based on the
budget.
Student puts little
thought into
decision.
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