Why Try Project
Part 1 “Why Try?” Due Date: August 24, 2012
You have just received your high school diploma. Having had enough of school and living at home, you have decided to move out and get a job. After searching, you have found a job at a fast food restaurant called The Red Barn where you work 40 hours a week and make $15,080 a year. You are faced with the challenge of establishing a budget that you can live with.
A budget starts with knowing how much money you bring in each month. This is called your income. Expenses are the opposite of income. Money is spent on the things you “need” (Required) or “want” (Optional). Below are some basic categories of expenses that you should consider in your budget.
Income Expenses
Gross Salary $1,255
Taxes (Federal, State), FICA 20% of Gross Salary $251
Net Income (Gross Salary – Taxes, etc.) $1,004
Basic health insurance (Required) $200
Housing (Required) ___
Utilities (10% of your rent or mortgage) (Required) ___
Transportation (car payment, insurance, gas) (Required) ___
Food (Required) ___
Phones (home, cell) (Optional) ___
Cable (Optional) ___
Clothing (Required) ___
Entertainment (Optional) ___
Misc. (2% of your net monthly income) (Required) $ 21
Pet and pet supplies (Optional) ___
Savings Optional) (goal of at least 5% of your net monthly income) ___
Student loan payment (depending on career) (N/A for Parts 1 & 2) ___
Net Income $1,004
Total Expenses ___
If you share expenses with another classmate, you must list your partner at the top of your data sheet.
You have just received your high school diploma. Having had enough of school and living at home, you have decided to move out and get a job. After searching, you have found a job at a fast food restaurant called The Red Barn where you work 40 hours a week and make $15,080 a year. You are faced with the challenge of establishing a budget that you can live with.
A budget starts with knowing how much money you bring in each month. This is called your income. Expenses are the opposite of income. Money is spent on the things you “need” (Required) or “want” (Optional). Below are some basic categories of expenses that you should consider in your budget.
Income Expenses
Gross Salary $1,255
Taxes (Federal, State), FICA 20% of Gross Salary $251
Net Income (Gross Salary – Taxes, etc.) $1,004
Basic health insurance (Required) $200
Housing (Required) ___
Utilities (10% of your rent or mortgage) (Required) ___
Transportation (car payment, insurance, gas) (Required) ___
Food (Required) ___
Phones (home, cell) (Optional) ___
Cable (Optional) ___
Clothing (Required) ___
Entertainment (Optional) ___
Misc. (2% of your net monthly income) (Required) $ 21
Pet and pet supplies (Optional) ___
Savings Optional) (goal of at least 5% of your net monthly income) ___
Student loan payment (depending on career) (N/A for Parts 1 & 2) ___
Net Income $1,004
Total Expenses ___
If you share expenses with another classmate, you must list your partner at the top of your data sheet.
The following expenses cannot be
shared:
Student Loan
Basic Health Insurance
Food
Clothing
Miscellaneous
Saving
Your expenses need to be less than your monthly income. If not, you will need to change your spending habits. Also, if your savings are not at least 5% of your income, it is recommended that you will need to adjust your spending habits.
Housing
1) Choose a housing preference using the information provided. Housing should be no more than 30% of your monthly net income. (0.30 multiplied by Net Monthly Income)
a. How much money can you afford for housing?
b. Which housing option did you choose?
c. What is your housing cost?
d. What percent is this of your net monthly income?
Apartment (Rent Per Month)
One bedroom no roommate
$650
Two bedroom no roommate
$850
Two bedroom with roommate
$450 per person
Studio
$500
Condo (Mortgage and Assessment per Month)
One bedroom no roommate
$850
Two bedroom no roommate
$1050
Two bedroom with roommate
$550 per person
Luxury Condo
$1440
Townhouse (Monthly Mortgage and Property Tax)
Two bedroom no roommate
$1350
Two bedroom with roommate
$700 per person
Three bedroom with roommate
$900 per person
Home (Monthly Mortgage and Property Tax)
Two bedroom
$1400
Three bedroom
$1650
Four bedroom
$1900
2) Utilities are 10% of your monthly housing costs. This includes gas, water, electric, and garbage collection.
a. What is your utility cost?
Transportation
Choose 2 different cars you would consider owning (new or used) . Use the Newspaper Automobile Advertisements to find a vehicle. One choice must be under $15,000. You will have no money available for a down payment.
To calculate the monthly payments, go to the web site: http://www.edmunds.com/edweb/loan/calculator.html
Mr. Landers will also be available to help doing the calculation in class.
Basic Health Insurance
Food
Clothing
Miscellaneous
Saving
Your expenses need to be less than your monthly income. If not, you will need to change your spending habits. Also, if your savings are not at least 5% of your income, it is recommended that you will need to adjust your spending habits.
Housing
1) Choose a housing preference using the information provided. Housing should be no more than 30% of your monthly net income. (0.30 multiplied by Net Monthly Income)
a. How much money can you afford for housing?
b. Which housing option did you choose?
c. What is your housing cost?
d. What percent is this of your net monthly income?
Apartment (Rent Per Month)
One bedroom no roommate
$650
Two bedroom no roommate
$850
Two bedroom with roommate
$450 per person
Studio
$500
Condo (Mortgage and Assessment per Month)
One bedroom no roommate
$850
Two bedroom no roommate
$1050
Two bedroom with roommate
$550 per person
Luxury Condo
$1440
Townhouse (Monthly Mortgage and Property Tax)
Two bedroom no roommate
$1350
Two bedroom with roommate
$700 per person
Three bedroom with roommate
$900 per person
Home (Monthly Mortgage and Property Tax)
Two bedroom
$1400
Three bedroom
$1650
Four bedroom
$1900
2) Utilities are 10% of your monthly housing costs. This includes gas, water, electric, and garbage collection.
a. What is your utility cost?
Transportation
Choose 2 different cars you would consider owning (new or used) . Use the Newspaper Automobile Advertisements to find a vehicle. One choice must be under $15,000. You will have no money available for a down payment.
To calculate the monthly payments, go to the web site: http://www.edmunds.com/edweb/loan/calculator.html
Mr. Landers will also be available to help doing the calculation in class.
After determining the cost of the monthly car payment, add $200 a month for car insurance.
If you find you cannot afford a car, you may pay $100 per month for use of public transportation.
Of course, bicycles are cheaper but uncomfortable for your date on a Friday evening.
Flexible Estimated Expenses
Research on your own the possible monthly cost of these items. This can be done by using newspaper ads, the internet, or your parents. Enter the costs for:
3) Food (Required)
4) Phone (Optional)
5) Cable (Optional))
6) Clothing (Required) Estimate your monthly cost0
7) Entertainment (Optional))
8) Miscellaneous (2% of your Net Monthly Income)(Required)
9) Pet and pet supplies (Optional))
10) Savings (Optional) but encouraged to save at least 5% of your Net Monthly Income)
Part 2: An emergency requires you to legally get $500 by the end of the day and you are not allowed to borrow the money from friends and family. You must take a loan that will require you to pay the loan back at a rate based on the following table:
Loan Amount Monthly Payment
$400-$500 $25
$300-$400 $20
$200-$300 $15
$100-$200 $10
$0-$100 $5
Part 3: You went to the Syracuse University and received a degree in computer engineering. IBM has hired you for a starting gross salary of $65,000. Your annual taxes will be $13,000 so your net annual income will be $52,000. Determine your net monthly income and then revise your budget choices. Include in your budget the cost of repaying your college loans at a rate of $200 a month.
Deliverable: Write a summary of your lifestyle as a fast food cook and compare it to your life as a college graduate. This report is due on August 24, 2012.
Part II
Checks and Balances due date September 14th
This part of this project will give you an opportunity to learn how to use equations to model your personal budget.
Step 1 Track your income and expenses in a spreadsheet for two weeks.
Step 2 Categorize your expenses and your incomes and assign a variable to each category.
Step 3 Generate a circle graph to display your weekly budget
Step 4 Write an equation where the average weekly amount that you save will be equal to the average weekly income minus your average expenses.
Step 5 Select an item that each student would buy if they could spend $150. Determine the actual cost either from an advertisement or from the store.
Step 6 Model: Make a graph with Money on the Y-axis and weeks on the X-axis. Determine graphically how long it will take to save enough money to purchase your expensive item
Step 7 Model: Write an equation to model the situation. (Hint: Let N = the number of weeks to save enough money)
Step 8 Summary: Write a summary explaining your processes, results, and insights developed while completing the project (shortcuts they found for making circle graphs or spreadsheets, or ways to manage their own money, etc)
If you find you cannot afford a car, you may pay $100 per month for use of public transportation.
Of course, bicycles are cheaper but uncomfortable for your date on a Friday evening.
Flexible Estimated Expenses
Research on your own the possible monthly cost of these items. This can be done by using newspaper ads, the internet, or your parents. Enter the costs for:
3) Food (Required)
4) Phone (Optional)
5) Cable (Optional))
6) Clothing (Required) Estimate your monthly cost0
7) Entertainment (Optional))
8) Miscellaneous (2% of your Net Monthly Income)(Required)
9) Pet and pet supplies (Optional))
10) Savings (Optional) but encouraged to save at least 5% of your Net Monthly Income)
Part 2: An emergency requires you to legally get $500 by the end of the day and you are not allowed to borrow the money from friends and family. You must take a loan that will require you to pay the loan back at a rate based on the following table:
Loan Amount Monthly Payment
$400-$500 $25
$300-$400 $20
$200-$300 $15
$100-$200 $10
$0-$100 $5
Part 3: You went to the Syracuse University and received a degree in computer engineering. IBM has hired you for a starting gross salary of $65,000. Your annual taxes will be $13,000 so your net annual income will be $52,000. Determine your net monthly income and then revise your budget choices. Include in your budget the cost of repaying your college loans at a rate of $200 a month.
Deliverable: Write a summary of your lifestyle as a fast food cook and compare it to your life as a college graduate. This report is due on August 24, 2012.
Part II
Checks and Balances due date September 14th
This part of this project will give you an opportunity to learn how to use equations to model your personal budget.
Step 1 Track your income and expenses in a spreadsheet for two weeks.
Step 2 Categorize your expenses and your incomes and assign a variable to each category.
Step 3 Generate a circle graph to display your weekly budget
Step 4 Write an equation where the average weekly amount that you save will be equal to the average weekly income minus your average expenses.
Step 5 Select an item that each student would buy if they could spend $150. Determine the actual cost either from an advertisement or from the store.
Step 6 Model: Make a graph with Money on the Y-axis and weeks on the X-axis. Determine graphically how long it will take to save enough money to purchase your expensive item
Step 7 Model: Write an equation to model the situation. (Hint: Let N = the number of weeks to save enough money)
Step 8 Summary: Write a summary explaining your processes, results, and insights developed while completing the project (shortcuts they found for making circle graphs or spreadsheets, or ways to manage their own money, etc)
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