HST 413 Economics 7.10 Creating a Budget - 50 points Name: Saving your TGA: Last Name, First Name Initial Student ID#_7.10 Create a Budget TGA TGA. Example: Smith, J 1234567_7.10 Create a Budget TGA TGA When you are done, use the Dropbox to turn in your completed assignment. Part 1: Calculating You Monthly Income (5 Points) Step 1: You make $12.00 Per Hour. Step 2: You work 40 hrs. a week for 5 weeks this month. Total Hrs. Worked = ______________ Step 3: What is your monthly income? __________________ Part 2: Cost of Living (10 Points) Step 1: Go to https://www.numbeo.com/cost-of-living/estimator_main Step 2: Enter the city (Must be in the US) that you would like to live in. Hit enter on your keyboard. Which city did you choose? ____________________ Step 3: Fill out the questions on the cost of living calculator (please follow the guidelines below). • • • • • Select 1 for number of people in your household. Select No for Alcoholic Beverages. Select 0 for packs of cigarettes. Select an Option for Rent. The rest are up to your discretion. Step 4: Provide screenshots of the cost of living for your selected city (Your screenshots must show the following categories: Restaurants, Going Out, Food at Home, Car and Gasoline, Public Transport and Taxi, Leisure and Sport Memberships, Utilities, Clothing and Shoes, Rent, and Other goods and Services). (Your Screenshots go here) Part 3: Create your Budget (15 Points) Step 1: Complete the budget worksheet below. You must stay within your monthly income. You must use the cost of living estimation from part 2 as a basis for your budget. Step 2: Calculate your monthly expenses. You absolutely MUST HAVE the following: • • • • • • RENT: You must spend a minimum of $400 on rent (and should indicate that you are living with roommates) or $200 if you are living at home with your parents. TRANSPORTATION: You must have some form of transportation. You can research the costs of a bus pass OR include the cost of a car payment, gas and insurance. GROCERIES/FOOD & UTILITIES (electricity and water). Your other expenses are at your discretion. I highly encourage you to discuss your expenses with your parents. They are great resources on what it costs to live in your area and what your bills might be. You can also search the internet. Remember, you must research the costs of living by using the link above, conducting a search, or asking your parents. Step 3: Calculate how much you will put into savings each month. Step 4: Calculate how much you have left over. Income Wages Income Calculating Wages - Step 1: Multiply $12.00 Per Hour by 40 Hours a Week. Step 2: Multiply Weekly Income by 5 (This should be the same number from part 1). Total Monthly Income = Item Expense Housing Transportation Monthly Total 0 0 Monthly Total Rent / Mortgage 0 Utilities (Electricity, Heating, Cooling, Water, Garbage) 0 Groceries (Food at Home) 0 0 Household Supplies Other 0 0 0 0 Subtotal = 0 Item Expense Monthly Total Car Payment 0 Car Insurance 0 Gas 0 Parking Passes / Lot Fees 0 Car Repairs / Maintenance 0 Public Transportation Other 0 0 Subtotal = 0 Monthly Total 0 Item Expense Electronics (Cell Phone) Entertainment (Movies, TV, Video Games, Concerts, 0 0 0 0 Etc...). Personal Restaurants Clothing and Shoes Gifts / Special Occasions Fitness Club, Monthly Fee Other 0 0 Monthly Total 0 0 0 0 Subtotal = 0 Subtotal = Item Expense Misc. Total Monthly Expenses (Add up all expenses) = 0 Savings Savings Emergency Fund Vacation and Travel Car Other Monthly Total 0 0 0 0 0 Total Allocated to Savings = 0 Total Monthly Income = Total Monthly Expenses = Total Allocated to Savings = Total Left Over = Part 4: Your Summary (20 Points) Directions: Write a 4 paragraph summary of your plan, your choices, your outcome, and how your budget would change with your “dream job/”. 0 0 0 0 Paragraph 1: What 5 items are must haves in your budget? Explain why each of these items are important to you. Where each of these items more expensive or less expensive than you anticipated? Why? Please provide an explanation for each item. Which of these items are you willing to spend more on than the others? Can any of these items be scaled down or not purchased? Paragraph 2: Look at your budget to see your biggest expenses. What are your top 3 most expensive budget items? How much do each of these items cost each month. Explain your living arrangement. Did you choose to live at home and pay $200 a month? If so, why did you choose this option. Provide 3 reasons why this was the best option. Did you choose to rent an apartment? If so, why did you choose this option? Provide 3 reasons why this was the best option. If renting, how many roommates will you need to have in order to afford your budgeted amount of $400. Explain how you were able to determine your rent amount. Additionally, explain your transportation choices. If you chose a car, make sure you explain if your car was gifted to you, or if you had car payments. Make sure to include insurance and gas. If you choose public transportation, make sure your figures are accurate and that you explain the type of public transportation you will use. Paragraph 3: When calculating your budget, did you go over budget the first time? What changes did you make to make your budget work? Is there anything you could do without or spend less on? Would you consider credit cards or loans? Would you need a second job? Did you have any money left over? If so, what would you do with it? Would you save it, invest it, etc.? Paragraph 4: Go to https://www.bls.gov/ooh/occupation-finder.htm and find your dream job. What is your dream job? What is the annual salary that your dream job makes? What would be your monthly income (Take the annual salary and divide it by 12 months)? How much of a change is it from your monthly income in the budget above? How will that alter your budget? What will you spend more on? Explain why? What education, training or experience does your dream job require? Remember that you can use the information you learned in the Unit 3 TGA to help you complete this portion, or you can look at the website listed above. Bonus (5 Points): Did you learn anything that could help you in the future? Is there anything that surprised you?
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