How much will it take



Name ___________________________ Hour _______

How much will it take? Real World Percentages

Congratulations! Fast forward your life a few years…… you have graduated from high school! You just got your first job working at __________________. You are buying your first car, moving into your first apartment, and paying your own expenses! How much will it take?

____________________________________________________________________________________

Step 1: Calculating your income

As an entry level employee, __________________ has offered you a job making $15.00 per hour. You will work 40 hours per week. SHOW ALL WORK and calculate the following:

1. Total wages per week: __________

2. Federal and state taxes: (15% of your total wages) __________

3. Payroll taxes: (7.65% of your total wages) __________

4. Total taxes: __________

5. Weekly take home pay: __________

6. Monthly take home pay (there are roughly 4.3 weeks in each month): __________

Step 2: Buying your first car

You are going to need a car in order to be able to get to work. Find the car you would like to drive from the chart below. Fill out the information in the blanks. (Remember: YOU have to pay for this car ()

Make: __________

Model: __________

Year: __________

# of doors (2 door = coupe 4 door = sedan) __________

# of miles __________

Price: __________

|Type |Make |Model |

|Lakeview Village |Duplex |$1,100 |

|Hidden Hills |Duplex |$1,025 |

|Fulton Apartments |Studio Apartment |$350 |

|CityScape Lofts |Studio Apartment |$400 |

|Tree Line Village |Apartment |$750 |

|Rolling Meadows |Apartment |$800 |

Name of rental property: ________________________________

What kind of property is it? (Apartment, Studio apartment, duplex) ____________

Monthly rent: ____________

What percent of your monthly income will your housing cost be? _____________

Is this a reasonable percentage? Please explain in the space below.

Finally, brain storm at least 2 different ways you could lower the cost of your housing.

1.

2

Step 4: Calculating your Expenses

You will have expenses as you go through your life. Some expenses are necessary and some are “luxury” items. In calculating your expenses you will need to need to make some decisions

A. Necessary Expenses – these are expenses that you must pay for each month. The four you will focus on will be health insurance, car insurance, food, and utilities (water, electricity and gas) for your apartment. Use the chart below and the given percentages to calculate how much you will spend each month for these expenses.

|Expense |% of monthly income |Work to show cost of monthly income |

|Health Insurance |2% | |

|Car Insurance |4% | |

|Food |10% | |

|Utilities |5% | |

How much money will your necessary expenses be each month? ____________

Let’s look at our expenses so far.

What is your monthly car payment? ____________

What is your monthly rent? ____________

What is the total of your monthly “necessary expenses” ____________

What is the total of your expenses so far? ____________

How much monthly money do you have left that is NOT going toward expenses?

____________

The “leftover” money is what you can spend on what we call LUXURY EXPENSES.

B. Luxury Expenses - these are expenses that you pay for each month but are not a requirement to have. You will have a choice for the amount of money you will spend on the following items:

Entertainment Television Cell Phone Shopping

Entertainment – activities you do outside of your apartment like going to movies, going out for dinner, etc. You must choose one of the following entertainment packages for the month.

|Choice A (mostly stay home) |1 movie and 1 dinner at a restaurant for the month - $30.00 |

|Choice B (somewhat social) |2 movies and 2 dinners at a restaurant for the month - $60.00 |

|Choice C (social butterfly) |4 movies, 2 lunches and 2 dinners out for the month - $115.00 |

Entertainment Choice (A, B, or C) ___________

What percent of your monthly income will you spend on entertainment? ___________

Television – you must choose which TV package you will be signing up for in your apartment.

|Package A |$0 a month – I will choose to live without t.v ( |

|Package B |$29.99 a month – basic cable and a few upgraded channels |

|Package C |$43.99 a month – silver package plus a DVR |

|Package D |$64.99 a month – gotta have all the sports and movie channels too |

Television Choice (A, B, C or D) ___________

What percent of your monthly income will you spend on television? ___________

Cell Phone – you must choose your cell phone package.

|Package A |$0 a month – I can live without a cell phone. |

|Package B |$20 a month – I will stay on a family plan with my parents. |

|Package C |$29.99 a month – unlimited texting and unlimited minutes |

|Package D |$49.99 a month – gotta have a data plan too. |

Cell Phone Choice (A, B, C or D) ___________

What percent of your monthly income will you spend on a cell phone? ___________

Shopping – you must choose your shopping package below.

|Package A |$15 a month – I am going green and will shop at 2nd hand stores this month |

|Package B |$35 a month – I will only buy 1 clothing item/ 1 videogame this month |

|Package C |$70 a month – I will buy 2 clothing items/ 2 videogames this month |

|Package D |$200 a month – I am a shop-a-holic and need to plan these expenses ahead of time. |

Shopping Choice (A, B, C or D) ___________

What percent of your monthly income will you spend on shopping? ___________

PUTTING IT ALL TOGETHER

Complete the expense table below.

|Expense |% of Monthly Income |Amount of money per month |

|Car Payment | | |

|Rent | | |

|Health Insurance | | |

|Car Insurance | | |

|Food | | |

|Utilities | | |

|Entertainment | | |

|Television | | |

|Cell Phone | | |

|Shopping | | |

|TOTAL | | |

What is your total percent of expenses? __________

Is this a reasonable percent? Use the space below to explain why or why not.

What is the total amount of money you will pay for expenses each month? __________

Is this a reasonable amount of money? Use the space below to explain why or why not.

So, now let’s put it all together. What will it take?

Monthly take home pay: ____________

Monthly budgeted expenses: ____________

Over or (short) ____________

If you don’t have enough money to meet your monthly expenses, what will you reduce or eliminate? Use the space below to brainstorm your ideas.

What else would you add to your monthly budget? How will you pay for it?

Saving - one big item we have not addressed is saving for your future. In the space below create your own saving plan. Find a reasonable percentage and figure out how much money you should put aside each month.

All Else- Is there anything else you think we have forgotten? How about gas for your car? Anything else? Please answer in the space below.

Did you make a good deal on your car?

Kelley Blue Book, , is the United States' largest automotive vehicle valuation company. This company's website is a source for new and used vehicle pricing and information that can tell a customer what the “retail value” is for any make and model of a car which can be helpful when deciding to purchase a vehicle. Below are the vehicles from the chart above, how much it costs to buy that vehicle, and how much Kelley Blue Book says that vehicle is worth. Find the Kelley Blue Book price for the car you bought in the chart below.

|Make |Model |You Paid |Kelly Blue Book Value |

|Ford |Mustang |$6,100 |$7,292 |

|Volkswagen |Passat |$7,750 |$6,277 |

|Honda |Accord |$16,888 |$11,400 |

|Chevy |Impala |$9,995 |$10,500 |

|Dodge |Caravan |$18,495 |$18,000 |

|Dodge |Durango |$16,988 |$14,000 |

|Cadillac |Escalade |$18,300 |$19,572 |

|Chevy |Silverado |$4,900 |$5,200 |

|Ford |F-250 |$14,995 |$13,500 |

|Chevy |Equinox |$11,500 |$16,235 |

Kelley Blue Book value: __________

Price you paid for your car: __________

Calculate the percent Increase or decrease from the Kelly Blue Book Value

to the amount you paid (% of change) __________

Did you make a good deal? If yes, state what percent you saved on the purchase of your car. If not, state the percent in which you over paid for your car.

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

CHOOSE 3 from the 5 scenarios below to complete!

1. For being such a loyal and considerate customer, your landlord has decided to give you a deal. To show his/her appreciation for your business, by renewing your lease, you will get $48.00 off of your monthly rent! Calculate the percent change.

2. This month you went on a huge shopping spree and spent $343.29. What is the percent change in your shopping budget for this month?

3. Even though you spent a lot of money shopping this month, you cut back $12 on your entertainment by staying home an extra night. What is the percent change in your entertainment expense this month?

4. You decided to upgrade your cell phone package by purchasing insurance on your phone. The insurance costs $6.49 per month. Calculate the percent change in your cell phone bill for each month.

5. You have decided to purchase a new pet for your home (you can choose either a dog or a cat). However, your landlord charges an extra monthly fee of $49.99 to keep a pet. Calculate the percent change in your monthly rent

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