Budget project for Math in Society class

Budget Project

Students will create a budget spreadsheet. This spreadsheet will include income from a job, as well as

expenses such as housing, a vehicle, food, etc. The budget will assume that the student is single and just out

of college. Please use these considerations when estimating your salary and payments. Exceptions are at the

discretion of Professor Botkin and must be made ahead of time.

A sample budget sheet may be found in Blackboard, but feel free to create your own in any program you like.

You must submit your budget project in Blackboard by Sunday, April 8 at 11:59 p.m. Your project MUST

include the budget sheet as well as answer all of the questions in each category. You may either type the

answers in the budget sheet or you may submit a separate document with the answers to the questions.

Rubric

Max Points Partial Credit No Points

Budget Spreadsheet (20) The student completes a budget spreadsheet and fills out all appropriate information.

Incomplete/inaccurate budget sheet

No budget sheet

Income Taxes (5) The student completes a W-4 and VA-4 and uses these numbers to calculate net income.

No tax forms

Occupation (10) The student finds a job and answers all questions regarding their occupation.

Missing or incorrect information

No job

Loans (10) The student takes out at least one loan (home or vehicle) and provides all information.

Missing or incorrect information

No loans

Other categories (5 points each – 50 total)

The student accurately estimates expenses in each of the other categories.

Missing or incorrect information

No information

Conclusion (5) The student writes at least a one-paragraph conclusion.

No conclusion

Occupation:

Where are you going to live?

What will be your occupation?

What is a typical day like at your job?

What is the salary range for someone with that job in the city you want to live?

What education/training do you need for your job?

What will be your total debt when you get out of school/training?

Here are some excellent resources that you may use to research your chosen profession:

 Collegboard.com Majors & Career Central:

http://www.collegeboard.com/student/csearch/majors_careers/index.html

 Bureau of Labor Statistics: https://www.bls.gov/

 Career One Stop: https://www.careerinfonet.org/Occ_Intro.asp?id=1,&nodeid=1

 Military Careers: http://www.careersinthemilitary.com/

1. Complete a sample copy of a W4 form (www.irs.gov) and the state Va4 form (www.tax.virginia.gov). 2. Choose number of allowances: https://smartasset.com/taxes/tax-allowances or

https://www.irs.gov/individuals/irs-withholding-calculator

3. Complete the paycheck calculator: https://www.paycheckcity.com/calculator/salary/

A. Check date: 1/1/17

B. State: choose the one where you will live

C. Gross pay – this is the total you will make for the year before taxes/deductions

D. Gross pay type – annually

E. Gross salary YTD = 0

F. Pay frequency = you choose, but make sure you state it on your sheet

G. Federal filing status = single or married

H. # of allowances = from #2 above

I. Additional federal withholding = 0

J. Round federal withholding = no

K. Click ‘calculate’ and record below

4. Calculate paycheck:

A. Annual gross salary:

B. Monthly gross pay:

C. Federal withholding:

D. Social security withholding:

E. Medicare withholding:

F. State withholding:

G. Net pay:

Loans: You must buy either a home or a vehicle. You can buy both if you want.

HOME

Find a house, condo, apartment, etc. to buy or rent. Here are some websites that may help:

http://www.trulia.com/

http://www.zillow.com/

Give the link or print a copy of the home.

Will you buy or rent?

Description of the property:

Price of house/apartment/condo:

Bank/lender you’re using to get a loan:

Interest rate:

Term (years):

Down payment:

Monthly mortgage:

Monthly rent (if you’re not buying a home):

Calculate the property taxes on this property (only if you’re buying):

http://www.tax-rates.org/property-tax-calculator

TRANSPORTATION

Will you buy/lease a vehicle or take some form of public transportation?

**Note – you must buy either a home or a vehicle.

If public transportation, find out how much per day you will spend:

If you’re purchasing a vehicle:

Find a vehicle to buy or lease. Give the link or print out a copy.

Here’s a website you can use: http://www.autotrader.com/

Make:

Model:

Year:

Miles:

If you use Autotrader, you can calculate the monthly payment on their website.

Total purchase price of vehicle:

Loan term (years):

Interest rate:

Down payment:

Calculate monthly payment:

Calculate property taxes on the vehicle you purchased:

http://www.tax-rates.org/property-tax-calculator

How many miles is it from your home to work?

How many extra miles will you need for travel to family, groceries, etc.?

How many miles/gallon does your vehicle get?

Estimate monthly gasoline costs:

STUDENT LOANS - Use the student loan calculator http://www.finaid.org to calculate the monthly payment

on your student loans.

How much will you borrow for your entire college career?

What types of loans did/will you get? (Direct Stafford? Subsidized or Unsubsidized? Perkins?)

For each loan (calculate the total amount you will borrow):

What is the interest rate?

How long is the term?

How much interest will you pay back at the end of the term?

What is the monthly payment?

Other:

INSURANCE-Students will need to secure insurance on the vehicle they purchased. Explain why you chose to

go with the insurance company you did. If your vehicle is financed, you cannot use the uninsured motorist fee

at DMV. ALSO students will need to secure renters insurance for properties in their apartment in case

something happens.

CELL PHONE/TELEPHONE- Students will need a cell phone or telephone in the apartment. Every person

should make themselves available to be contacted for personal and professional reasons or in case of

emergency. The quickest and easiest way to make one available to be contacted is through cell

phones/telephones.

UTILITIES- List utilities that the student will be responsible for that are not including in the housing

arrangement. These may include, but are not limited to, cable, online services, electricity, trash, water, and

others.

FOOD and CLOTHING- The student will be expected to estimate a reasonable amount that they will spend on

food per month. Consider where your grocery shopping will be done and why. What strategies will you use to

make your dollar go further? Also, the student will describe the type of clothing that will be required for their

chosen profession. They should also estimate a monthly clothing cost.

ENTERTAINMENT/MISCELLANEOUS- Students should determine what they will do for entertainment and

other related expenses and how much it may cost them per month. Explain why activities/hobbies are

important and why you chose to spend money on them as opposed to other activities. Are they wise

financially? Are you saving for big purchases? Again, what strategies will you use to make your dollar go

further?

CHILDREN- Students should calculate expenses related to having children such as childcare, lunch money,

supplies, clothing, etc. This will not apply if you are not having children.

PERSONAL- Students should estimate personal expenses, such as clothing, grooming, etc.

SAVINGS- Students should consider how much money they will set aside per month for savings. Students

should realize that they cannot possibly allow for every single expense before they happen. Unexpected

expenses could come in the form of car repairs, medical care, or sudden travel. In order to prepare for these

future costs (which are a certainty) one should put aside money in a savings account that can be easily

accessed.

INVESTMENTS- Students should consider how much money they will invest in retirements, stocks, bonds, etc.

Students do not have to invest any money. Students should also research how much money will be invested

on their behalf in the profession they choose.

DONATIONS- The student must determine what charitable giving will be a part of their budget. Though many

choose not to spend their money on charitable expenses, they can be of some financial benefit. Charitable

expenses can be used as tax write-offs on their income taxes. More importantly they remind the student that

no matter their profession, they are much better off than many other people their age around the world.

Financial contributions may be to a religious institution or to another organization. Students will research

what institution they will contribute to, list details about it, and why it was chosen. Remember that donations

can be made in the form of time/service.

Conclusion & Budget Sheet

Students should complete the budget sheet, putting specific information in the correct sheet. For example,

home loan information should be put in the sheet labeled ‘Housing.’ At the end, the student will put all

income and expenses in the first sheet labeled ‘Budget Sheet’ and will calculate income minus expenses.

The student will also go to the last sheet in the Excel file (or in a separate document), labeled ‘Conclusion,’ and

will write at least a paragraph about what he/she learned.

Extra credit: BANK- Students can choose a bank to deposit their salary/wages. They will tell why they have

chosen this particular bank, and they will indicate which services they will use at the bank. Include

information on a checking account, online banking services, a savings account, an ATM card, and credit cards.

List fees for services, interest rates, overdraft protection, and limits on accounts. Complete a sample

application from a bank. Any pamphlets/advertisement containing information on the financial application will

be accepted!