Reading

Family Member

Name

Current Age

Grade

Mother

Jackson

Father

unknown

Child 1 (infant from Discussion 3)

Barbara

6

Child 2

Child 3

Child 4

Child 5

Expense

Options

Cost

Resources

Employment

1 income

2 incomes

$___________

Use the median monthly income values based on gender and age (see tables at the end of this document)

Housing

Pick a location that meets your family’s needs.

What area did you pick and why do you think it meets your family’s needs?

Neighborhood overview: http://www.neighborhoodscout.com/reports/18369639/#overview

Neighbors and demographics: http://www.neighborhoodscout.com/reports/18369639/#demographics

Crime statistics: http://www.neighborhoodscout.com/reports/18369639/#crime

School district info: http://www.neighborhoodscout.com/neighborhoods/school-district/ratings/

Rent

Own

$___________

How much mortgage can you afford?

http://mmp.maryland.gov/Pages/Calculator.aspx

Rental information:

· Rentometer: https://www.rentometer.com/

· Apartment rental data: http://www.myapartmentmap.com/rental_data/ )

HOA fees

$___________

Range from $200-$900/month

Homeowner’s insurance

Renter’s insurance

$___________

Average homeowners insurance: MD=$68.67; DC = $92.96; VA = $67.13

(Source: http://www.valuepenguin.com/average-cost-of-homeowners-insurance)

Average renter’s insurance about $12/month

(Source: http://www.moneytalksnews.com/5-myths-renters-insurance/)

Energy

$___________

Average energy cost for your area

http://calc.myenergy.com/average-bill/district-of-columbia/august

(scroll to bottom of the screen and enter town or zip)

Cable tv

$___________

Average cable cost is $80/month

(Source: http://money.usnews.com/money/personal-finance/slideshows/11-expenses-destroying-your-budget/2)

Cell phone

How many? ___

$___________

Average cell phone bill: $35 - $120/ phone

depends on what services you want; family plans available

(Source: http://money.usnews.com/money/personal-finance/slideshows/11-expenses-destroying-your-budget/3)

Landline

$___________

Average cost of a landline: $30 - $40/ month

(Source: http://www.statista.com/statistics/223485/us-household-monthly-spending-on-landline-telephones/)

Water, sewer, etc.

$___________

$50-100/month

(Source: http://www.circleofblue.org/waternews/2015/world/price-of-water-2015-up-6-percent-in-30-major-u-s-cities-41-percent-rise-since-2010/)

Furnishings

$___________

Average of $125/month

(Source: http://budgeting.thenest.com/average-cost-running-home-24415.html)

Maid service

$___________

$100 - $225/cleaning

(Source: http://www.homeadvisor.com/cost/cleaning-services/hire-a-maid-service/ )

Home security system

$___________

$29-36/month

(Source: http://www.asecurelife.com/home-security-systems-comparison/)

Food

Food & beverage

$___________

Average cost of food is $786/month for a family of 4 ($196.50/person). Range is from $553 and $1,075.

Healthy diets average $1.50 more per day than unhealthy diets (~$45 extra/month/person assuming 2000 kcal/day)

(Source: http://bmjopen.bmj.com/content/3/12/e004277.full.pdf+html)

Dining out

$___________

Average family spends $225/month eating out (Source: http://www.thesimpledollar.com/trimming-the-average-budget-eating-out/)

Daily cup of coffee? Average American spends $1,100/yr ($91.67/month)

(Source: http://consumerist.com/2012/01/20/most-american-workers-spend-more-than-1000year-on-coffee/)

School meals

$___________

You can look up prices in your area, but here are the prices for Prince George’s County, Maryland

PG elementary schools:

Full price breakfast $32.00/month

Full price lunch $55/month

Reduced breakfast (130% of FPL) $6.00/month

Reduced lunch $8.00 month

PG middle and high schools:

Full price breakfast $32.00/month

Full price lunch $60/month

Reduced breakfast (130% of FPL) $6.00/month

Reduced lunch $8.00 month

(Source: http://www1.pgcps.org/WorkArea/DownloadAsset.aspx?id=212394)

Breastfeeding

Bottlefeeding

$___________

Breastfeeding equipment = $200 (1 time cost)

Formula = $105/month

Baby food = $60/month

(Source: http://www.investopedia.com/articles/pf/08/budgeting-for-baby.asp)

Transportation

Vehicle loans

How many cars have a payment? _____

$___________

What kind of car do you want? New? Used? SUV? Minivan? Truck? (variable cost)

Average new car loan in 2013 was $471/month

Average used car loan was $352/month

(Source: http://www.cnbc.com/2014/03/03/americans-borrowing-record-amount-to-buy-cars.html)

If you have another car in mind, here is an auto loan calculator: http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx

Car Insurance

$___________

Average monthly cost in 2014:

MD $151 per vehicle

DC $177 per vehicle

VA = $93 per vehicle

(Source: http://www.valuepenguin.com/average-cost-of-insurance)

Commuting costs

$___________

Cost of commuting: http://taps.ucmerced.edu/commutecostcalculator

Clothing

Diapers

$___________

Average cost of disposable diapers in the first year is $60/month

Average cost of diaper service is $76/month

Average cost of cloth diapers is $19/month

Average cost of wipes/month is $20/month

(Source: http://www.investopedia.com/articles/pf/08/budgeting-for-baby.asp)

Baby Clothing

$___________

Average of $60/month in first year

(Source: http://www.investopedia.com/articles/pf/08/budgeting-for-baby.asp)

Children’s Clothing

$___________

$11/month per child

(Source: http://www.huffingtonpost.com/2012/08/01/back-to-school-spending_n_1729143.html)

Adult’s Clothing

$___________

Recommended: 5% of income

(Source: http://www.whowhatwear.com/monthly-shopping-clothing-budget-guide-2014)

Healthcare expenses

Medical and dental care (not covered by insurance)

$___________

$60-$80 in copays for well-baby visits in the first year.

Health insurance

$___________

Average worker pays $4565 annually towards family health care plan (~$175/month)

(Source: http://www.nbcnews.com/health/health-care/health-insurance-now-costs-16-000-average-family-f6C10960584)

MD $180.40/month

DC $270.11/month

VA $229.16/month

(Source: http://kff.org/other/state-indicator/individual-premiums/)

Medications

$___________

Childcare

Child care

$___________

Average cost of daycare centers: $11,666/year ($972/month)

(Source: NACCRRA)

Average cost of nanny: 

Full time - $500 to $700 a week ($2,167 to $3,033 a month)

Part time - about $400 and $650 a week ($1,733 to $2,817 a month)  

(Source: http://www.babycenter.com/0_how-much-youll-spend-on-childcare_1199776.bc?page=2#articlesection3)

Home day care:

Babies and toddlers - $646/month

Preschoolers - $636/month

(Source: http://www.babycenter.com/0_how-much-youll-spend-on-childcare_1199776.bc)

Grandparents or relatives: free to low cost

Babysitting

$___________

Current rate is $15/hour

(Source: Care.com)

Education

Private school tuition and fees

$___________

2015-2016

Average elementary school = $8,429 ($842.90/month)

Average private high school = $12,875 ($1,287.50/month)

(Source: http://www.privateschoolreview.com/tuition-stats/private-school-cost-by-state)

Required books & supplies

$___________

$100 per school year

(Source: http://www.today.com/parents/school-supplies-average-cost-tops-100-1D80069506 )

Tutoring

$___________

$40-95/hour

Entertainment, Recreation, Enrichment

Gym membership

$___________

$40-50/month (for parents)

Sports & equipment

$___________

Team sports (rec league) - $40-$75/month

Horseback riding - $300-$2,000/month

Martial arts - $103/month

Gymnastics - $150-$300/month plus equipment (total $4000 per year)

Dance - $20 per lesson plus cost of equipment ($1500-$7000 annually)

(Source: http://www.cheatsheet.com/personal-finance/5-of-the-most-expensive-extracurriculars-for-kids.html/?a=viewall)

Computers, video games

$___________

Parents spend an average of $72.75/month on educational technology

(Source: https://www.edsurge.com/news/2015-07-21-how-much-will-parents-spend-on-education-technology-this-summer)

private lessons, classes

$___________

Music lessons - $15/$75 for half hour lessons plus materials ($1200 -$4500 annually)

(Source: http://www.cheatsheet.com/personal-finance/5-of-the-most-expensive-extracurriculars-for-kids.html/?a=viewall)

Acting classes: $150-$2,000 per course

(Source: http://education.costhelper.com/acting-school.html)

Savings

College savings plan

$___________

Recommendation: Save at least 25% of the cost of college expenses.

Average cost for college:

Private 4 year - projected total cost = $398K. Save $215/month.

Public 4 year - projected total cost = $201,386. Save $109/month.

World’s Simplest College Cost Calculator: http://www.savingforcollege.com/college-savings-calculator/index.php?childs_age=&mode=Go&page=results

Retirement savings

$___________

Recommendation: Save at least 10-15% for retirement

Rule of thumb = 50/30/20 Rule

· 50% necessities

· 30% discretionary

· 20% savings

(Source: http://startingout.tiaa-cref.org/how-much-of-my-income-should-i-save-every-month/)

Emergency funds

$___________

Recommendation: Save at least 3-9 months living expenses for emergencies

(Source: http://startingout.tiaa-cref.org/how-much-of-my-income-should-i-save-every-month/)

BALANCE AFTER EXPENSES

$___________

20-24

25-34

35-44

45-54

55-64

65+

Male

$27,040

$40,560

$49,972

$52,624

$53,508

$50,648

Female

$25,116

$35,620

$40,768

$40,248

$41,080

$39,156

20-24

25-34

35-44

45-54

55-64

65+

Male

$2,253

$3,380

$4164

$4385

$4,459

$4,220

Female

$2,093

$2,968

$3,397

$3,354

$3,423

$3,263