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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) Project 3 BUSH 031 055 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) Project 3 BUSH 031 055 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) Project 3 BUSH 031 055 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) Project 3 BUSH 031 055 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.) Project 3 BUSH 031 055 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, Project 3 BUSH 031 055 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. Project 3 BUSH 031 055 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. Project 3 BUSH 031 055 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 Project 3 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. When you are finished, save this project assignment document on your desktop as BUSH_031_055Project3.doc. Open the ISHS content management system by clicking on the MY WORK button in the top right corner of your screen. In the pop-up box that appears, click START next to Project 3. Use the BROWSE button to upload your project assignment document from your desktop. Be sure to save your file with the SAVE button at the bottom of the page before using the SUBMIT button to submit the project. You can review your results and grades by clicking MY GRADES on the top right corner of your screen. For complete directions about submitting projects electronically, access the “Project Submission” instructions from your online course access portal homepage. BE SURE TO WRITE YOUR NAME AND ID NUMBER IN THE SPACE PROVIDED ON THE FIRST PAGE OF THIS PROJECT ASSIGNMENT DOCUMENT! Project 3 BUSH 031 055
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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.
−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)

−I will choose the studio apartment because it’s cheaper than the one bedroom apartment. The
apartment will also help me utilize the space well. It is also manageable to pay for the rent
and insurance without strain and that way I will be left with more money to cater for the
other needs.
Project 3

BUSH 031 055

−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).

−The amount is reasonable since it is being spent on necessities.

−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).

−Going out for meals is necessary since its fun. However the amount sent on the meals can
be reduced by half. The times to eat out can also be reduced to once or twice per week.

−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).

−The expense is not necessary, however it would be good to do it once in a while. I can
treat myself to the latte once a week. This will help me utilize my money well and have
more for other necessary needs.

Project 3

BUSH 031 055

−On the weekends, you have your friends over to watch games and movies, and yo...


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Just what I needed…Fantastic!

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