Phs-econ.weebly.com
NamePerGame of Life – BudgetingCharacter NameOccupationCity you live inCity you work inSalary or Hourly WagePay Period (circle 1)Monthly Twice a Month Bi-Weekly WeeklyYour Profile:Using your profile, fill in the chart to the rightleft85533AmountPercentageHow to CalculateGross Income100%Total monthly income before taxes/deductionsFederal Taxesfed tax /gross income = decimal x 100State Taxesstate tax / gross income = decimal x 100401K/Retirement401k deduction / gross income = decimal x 100Benefits/Medicalmedical deduction / gross income = decimal x 100OtherOther deductions / gross income = decimal x 100TOTALAdd all deductions; total deductions / gross income = decimal x 100Net IncomeGross – deductions; net / gross income = decimal x 100Understanding Your Check:Using your paystub, fill in the chart to the right and calculate the percentage of your check that goes towards deductions.*Deductions are subtractions from your income*If you are an independent contractor you will have to calculate all of this rather than look at your check*The other category will vary based on your profile (i.e. Social Security, Union dues. Etc. – you will need to add these together)Savings & Investment:Ideally, you want to use the 70-20-10 Rule to decide how to spend your paycheck. This recommendation is not always a reality because of the cost of living. You will try to adhere to this recommendation.AmountPercentageHow to CalculateNet Income100%Total monthly income after deductionsSpending/Bills70%Net income x .70Savings20%Net income x .20Investing10%Net income x .10Check-in Questions:Based on the numbers calculated so far, do you have any concerns? What issues do you foresee in your ability to afford your needs and wants?How do you think this data will change when you calculate the numbers and percentages for a person who makes more money?How do you think this data will change when you calculate the numbers and percentages for a person who makes less money?Monthly Budget:Using the Life Expenses Packet, you will need to make choices about housing, transportation, communication, utilities, food, and other expenses your character will come across.Make choices that align with your character’s goals, income, and lifestyle. Option Picked AmountPercentageHow to CalculateSavings20%Net x .20 or see previous calculationInvesting10%Net x .10 or see previous calculationRent/MortgageRent / net = decimal x 100TransportationTransportation / net = decimal x 100Cell/Cable/NetPlan / net = decimal x 100UtilitiesTotal utilities / net = decimal x 100ElectricityGarbageWaterFoodfood bill x 4 , total food / net = decimal x 100Debt/LoanDebt/ net = decimal x 100Misc.Misc. / net = decimal x 100TOTAL(must be equal/close to net income)100%Add up all amountsAdd up all percentages(cannot exceed 100%)Reflection:Considering the numbers that you’ve calculated, do you need to make some changes to your character’s lifestyle? (i.e. save or invest less, get a roommate, buy a cheaper car?) Explain.If you found that you went over your budget, take the time to make adjustments in your monthly budget chart.What adjustments did you make? Why did you make these choices?Wrap-Up Questions:After completing this activity, why is budgeting important? What was the hardest part about budgeting? Explain your response. What parts of this process do you feel you understand the most? What parts of this process do you feel you still need more help with? ................
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