Name:______________________________

Date:________________________________
Class Period:__________________________

1. Strive to save 10% of your net income. Rent/Mortgage should be no more than 28% of net
income. Your car payment, insurance and gas should be no more than 28%.
2. Calculate what % of net income the following represent: Savings, Fixed, Variable, and
Discretionary, and TOTAL Expenses

Income or Expense Estimated Amount % of Net Income

INCOME $53,497 Lowest 10% of your field in that city you went to college.
go to http://stats.bls.gov/search/ooh.asp?ct=OOH (Occupational Outlook Handbook) and
Gross Monthly Income $4,458 search for a career; look up beginning salary
25% Taxes $1,115 Multiply beginning salary by .25 to find out monthly taxes withheld from each paycheck
NET INCOME $3,344 subtract taxes from gross income to find net income

EXPENSES
savings $787 24% You must save 10% of your net income
retirement $334 10% http://money.usnews.com/money/personal-finance/features/calculator
Total Savings $1,122 34%

Fixed Expenses
Rent should be no more than 28% of net income; www.rent.com, www.apartments. https://spotcrime.com/
Rent $600 18% com, check to see if utilities are included

www.autotrader.com, www.cars.com, Assume you put 10% down payment; http://www.cars.

Car Payment, Metra, CTA com/go/advice/financing/calc/loanCalc.jsp?mode=full (assume 5 yr/Interest Rate: A-4% B-
6% C-8% D-10% F-20%)
$68 2%
Car payment, insurance and gas should be no more than 28% of net income; estimate
Car Insurance $0 0% $300 biannually for insurance
Find a provider and get a plan that fits your budget. Click on the link to find your planCell
AT&T Verizon Cell Plans
Cell phone $30 1% Phone Plans
http://mappingyourfuture.org/paying/standardcalculator.htm
http://www.practicalmoneyskills.com/resources/financial_calculators/credit_debt/loan_cost http://www.finaid.org/calculators/loanpayments.phtml
Student Loan (what is the going rate of interest) $1,082 32%
Total Fixed Expenses $1,780 53%

Variable Expenses
Electricity or Gas $75 2% Average for a single adolescent.
look up the average cost per gallon and estimate how far you will be driving on a monthly
Gasoline $0 0% basis (miles); may depend on where you plan to live and where you plan to work
Groceries $100 3% Average for a single adolescent.
http://www.practicalmoneyskills.
Lunch $0 0.00% com/resources/financial_calculators/family_and_life/lunch_tracker
Car Repairs/Maintenance $0 0% What is the cost of an oil change?

Laundry/Dry Cleaning $5 0% Average for a single adolescent.

Total Variable Expenses $180 5%

Discretionary Expenses Must choose eight (8) of the following

Books, Magazines, I-Tunes, Apps $10 0% Sports Illustrated, GQ, People,
Personal Grooming $25 1% Find out how much it cost to get your hair done or cut
Clothes $100 3% Gap, Aerostposle, American Eagle, Champs, Etc
Charitable Contributions $0 0% Church tithes usually 10%, United Way,
Gifts $0 0% Birthdays, Anniversary, Weddings, graduations
Health Club Membership $0 0% Ballys, LifeFitness, Xsport, L.A. Fitness
Eating Out $15 0% McDonalds, Burger King, Pizza Hut, White Castles, Applebees, Outback, etc
Movies and Videos $8 0% Blockbuster, Netflix, Movie Theater, On Demand
Sports $0 0% Club Sports, softball team, flag football, basketball league, etc
Concerts, sporting event and Plays $45 1% Hamilton, Cubs game, Lollopalooza
Vacations $0 0% Spring Break, Great America, Wisconsin Dells, Florida, Cancun, etc
Cable/Internet Access $40 1% Comcast, Direct TV, Dish Network, Verizon Wireless & etc.
Pets $20 1% How much is that going to cost you?
Total Discretionary Expenses $263 8%
TOTAL EXPENSES $2,223 66%
NET INCOME $3,344 Copy net income to here
TOTAL EXPENSES $3,344 100% Add up Savings, Fixed Expenses, Variable Expenses, and Discretionary Expenses
BUDGET SURPLUS OR DEFICIT $0 0% Subtract Total Expenses from Net Income
1. What profession did you choose for yourself?

Physian/Surgeon

2. List 3 types of taxes withheld from your paycheck.

Federal, Medicare, Social Security

3. Explain the difference between gross income and net income. Were you surprised at your net
income?

Gross income is the monthly/annual income before taxes. Net income is the difference between your
taxes deducted from your gross income
4. What types of things are you saving for?

I could be saving for a car, a new apartment,

5. What city are you living in? How many square feet? Why did you choose this place?
I am living in Baltimore, Maryland. My apartment is 645 sqaure feet. I choose this place because it is
$600 per month also because it is 7 miles away from where i would be doing my residency at and the
rent is 600/month

6. What type of car did you buy? New or used? How much total? What safety features, fuel
economy, power and performance does the car have? What percentage of net income is car
payment, fuel, and insurance (less than 28%)?

I did not buy a car. I decided to ride the bus because it is only $68 for a monthly pass compared to 120
dollars for gas and then another $120 for car payments. this is 2% of my net income.
7. Does your company provide medical benefits? Why do you think employees want companies
to provide benefits?

Yes it include medical benefits. Becuase it is cheaper when you are provided them

8. Explain your cell phone plan. Carrier, rates, what is included?

my cell phone plan is $45 dollars per month. From AT&T. It includes 3
9. How much is an oil change? How often do you need to change your oil?

An oil change is at least $25. I do not need one because i will be riding the bus.

10. What company are you getting cable/internet access from? What package are you getting?
I am getting cable from AT&T. I am getting the Internet package because it is the cheapest and i do not
need cable.
11. What budget category (savings, fixed, variable, discretionary) was the largest? Were you
surprised by this?
Fixed expense was the largest category. I was not suprised by this because Fixed expenses include
rent, transportation cost, insurance,student loans and cell phone. Those are the things that probably cost
the most.

12. Can you maintain a comfortable standard of living based on your estimated income level? If
no, what alternatives do you have?
yes, i can because everything is balanced. And I have extra money left over to put in my savings

13. Did you end up with a budget surplus or a budget deficit?

I ended up with a surplus of 443 dollars

14. If you ended up with a deficit, what expense areas can you cut back in?

15. If you ended up with a surplus, what will you do with the extra money? Save? Spend?
I ended up with a budget surplus of $453, so i added to my savings, so now i have 737 dollars for
savings.