LIFE PROJECT
DUE DATE:
Wednesday, May 11, 2011
GRADE:
350 POINTS
v
70 PTS.
OFF IF LATE. NO LATE PROJECTS AFTER
WEDNESDAY, MAY 11
§
You have been
randomly assigned an occupation with a salary.
Over the next 2 weeks, you will develop a budget based on your income and
expenditures. To keep things
relatively simple, no one is married or has children in this simulation.
§
Every person must have an
individual budget. This
budget will account for all money spent and saved for 2 months.
The budget should balance to -0- each month.
§
Put your monthly
net salary at the top of each month on your budget worksheet.
§
You will receive a budget worksheet from me, but it must be RETYPED
with your final figures.
§
Everything must
be documented in your budget and in your pretend checkbook
ledger/register.
§
This checkbook
should balance according to your expenses and savings. Your checkbook will also
come out to -0- for each month. Checks must be written in ink not pencil.
§
Number your checks starting with 101. Continue
numbering month 2 where you left off for month 1. – DO NOT START WITH 101 FOR MONTH 2
§
Use the months April
& May when
recording the dates of checks, etc.
§
Every person will turn in a one
and a half (1 ½)- page TYPED summary of
your expenditures, what events caused changes, challenges you faced,
& how having a budget can be beneficial in real life.
§
This needs to be double spaced
and in 12 font – 1 inch from top & bottom – 1 inch left
& right margins.
§
Every person is responsible for
finding an apartment (§
You can only have one
roommate)
§
TITLE PAGE – Name
Date
Period
Occupation
Salary
Roommate
GRADING
EXAMPLE
Budget_______ (60 pts.) Proof of Purchases______(40 pts) Checks/ATMs/Deposits______(30 pts)
Creativity______(20 pts) Paper______(60 pts) Check Register_____(30 pts)
Neatness_____(20 pts) Grocery Info/Sign. _____ (40 pts) Car Payment Calculation_____(10 pts)
Title Page_____(20 pts) Pay Check Calculator Results_____(20 pts) Extra Credit_____(5 pts)
Steps in the Life Project
I.
Salary
A.
You will be “paid” your salary on the first of each month and must
budget your salary so that you have income for the entire month
B.
You must fill out a deposit slip
for your salary each month and record it in your check register, simulating a
deposit of your salary into your checking account.
II.
Taxes
A.
Go to www.paycheckcity.com
use their “paycheck” calculator.
B.
When you get the Paycheck
Calculator Results,
copy and paste it to Word and print it. This
must be included in your project.
Be sure to include your name,
occupation, and salary at the top of the Word document.
III.
Shelter
Find
an apartment, using the Apartment Guide or Apartment Finder.
You must live in the Birmingham metro area.
A.
You may have a roommate and split the rent, utilities, and groceries
B.
You may not share a bedroom or bathroom with your roommate..
C.
Living Expenses:
1.
Monthly
Rent –- Make check to
apartment complex.
2.
Security Deposit
(if it has one) – one time fee (split
with roommate) Include
in first month’s rent check.
3.
Application Fee (if
it has one) – one time fee ( is not
split with roommate)
Include in first month’s rent
check.
4.
Laundry
·
Wash clothes at
a laundry mat (.75 wash/.75 to dry…avg.
12 loads per month- $18.00 total)
·
Your apartment
may have a washer/dryer included
– not
washer/dryer connection.
·
Be sure to
include laundry detergent
on your grocery list.
·
You may write a
check to cash to
cover the laundry costs.
5.
Dry Cleaning – Check
your occupation slip for amount.
Use your
debit card to pay.
Put the name of the cleaners used in check register.
Be sure to subtract the amount from your check register balance.
6.
Utilities –Check
Apartment Guide to see if all or part of utilities are included in the rent.
It will say “included” if
any are.
- If you have a roommate, split the bill in half.
1)
Water - $50 (Birmingham Water Works)
2)
Electricity
- $90 (Alabama Power)
3)
Gas
- $50 (Alagasco)
4)
Phone
- $60 (Bell South)
5)
Phone
Hook Up Fee - $40
6)
Cell
Phone –$50 minimum monthly air time. This can not
take the place of your regular phone.
( T-Mobile,Cingular,
Verizon, Sprint, etc.)
7)
Cable
- $60 – Optional
(Charter)
8)
Fast
Access DSL Internet Service - $50 –
Optional
III. CAR
(You may not buy a motorcycle or RV.)
A.
Find a car you want in the newspaper, advertisement, Auto Trader, or the
internet. It must be a 2003
model
or above...Must include
picture & price. If
you use a want ad, just cut the want ad out for proof.
B.
Because you have just gotten a job, you have no money for a down payment;
so you have to go to the bank to get a loan.
The bank agrees to loan you the amount for the car, but you must pay them
back with interest. For this
project, the interest
rate is 8%. They agree to
give you the whole amount and you pay the car owner. You then spend several years paying the bank back with
interest.
Example:
§
Car Costs $10,000
§ Interest .08
·
$800.00 (finance charge) This is added to the original price of the car.
§
Total Amount Financed: $10,800/12 to 60 months
$10,800/48 months = $225.00 per month
§
Figure out the payments:
§
$6,000 – $7,999 - you may finance
for 24 months
§
$8,000 – $9,999 - you may finance
for 36 months
§
$10,000 – $11,999 - you may finance for 48 months
§
$12,000 & up – you may finance for 60 months
§
SHOW HOW YOU COMPUTED
YOUR CAR PAYMENT IN YOUR LIFE PROJECT
§
If you can not afford the
payments, find another car.
§
Car payment should be made out to a bank, credit union, or to
the car dealership.
C. Gasoline - Avg. 4 times a month @ $55.00 per fill up...If you choose an SUV or a truck, this figure will be $65.00 per fill up. Use your debit card to pay for gasoline. Put the gas station used in your check register.
D. Insurance - Use the table below to figure your insurance payment per month.
- Make payments to an insurance company.
MALES FEMALES
|
|
SUV/Truck |
Sports Car |
Mid Size |
SUV/Truck |
Sports Car |
Mid Size |
|
2008 Model |
190 |
200 |
180 |
160 |
170 |
150 |
|
2007 Model |
180 |
190 |
170 |
150 |
160 |
140 |
|
2006 Model |
170 |
180 |
160 |
140 |
150 |
130 |
|
2005 Model |
160 |
170 |
150 |
130 |
140 |
120 |
|
2004 Model |
150 |
160 |
140 |
120 |
130 |
110 |
|
2003 Model |
140 |
150 |
130 |
100 |
120 |
100 |
IV. FOOD
A.
Using the grocery list
provided, you will need to buy a minimum of 48 items
per week. If there is something you
would like to purchase that is not on the list, you may add it to the proper
category. (Split the bill with your roommate.)
B.
You have to go
to the grocery store of your choice
and price the items you have decided to buy for a week.
C.
You must purchase at least
one item in each category.
D.
You must get a grocery store adult employee to sign your grocery list
saying that you were there and did price your items.
E.
Coupons
- You may use coupons. These will
be counted as bonus points ( +1/4 point per coupon up to 5 points )
You must actually price the actual product on the coupon and include the
coupons in your project.
Subtract the coupons from your total weekly bill.
F.
Due to time constraints,
you may multiply your weekly grocery bill x 4 to get your monthly grocery bill
total.
This amount may be used for both months.
V.
ENTERTAINMENT
A.
Movies -
You must go to a minimum of 2 movies for the two months. (night
cost) You may attend both in one month or split it between the 2
months. You will need ticket stubs
or advertisements to show the cost of the movies. (You do not have to
actually attend, just show proof of movie cost.)
B.
Eating Out -
Minimum of 10 times per month @ $8.00 per meal.
Use your debit card for the total amount & use as cash.
C.
Sporting Event - You
must attend at least 1 sporting event total for the two months.
**You do not have to actually attend, but you must show
proof through advertisements, ticket stubs, interrnet,etc.
This event must be within a day’s drive from
Birmingham
D.
Cultural Event -
You must attend at least 1 cultural event total for the two months.
(Examples: ballet, dance, concert, band, plays, museums, art shows,
etc.)
**
You do not have to actually attend, but you must show proof through
advertisements, ticket stubs, internet, etc.
These events may be free, but proof of price must be shown.
This event must be within a days drive from
Birmingham.
V. CLOTHING
A.
You must buy 2
clothing items per month or 1 clothing item and 1 pair of shoes.
Socks, slippers white t-shirts are not permitted. $8
minimum per item
B.
You must have proof
of the price and where the item was purchased.
An ad out of a catalog, sale paper, or internet with picture
and price will work as proof.
VII.
MISCELLANEOUS
A.
Gifts –
Ø
1 gift per month from
the following categories: Birthday
$10 minimum
Ø
1 gift
per month from the following categories:
Wedding $10 minimum
Ø
4 Christmas/Holiday gifts –
These may be purchased over the two months.
You must buy for 2 parents/grandparents; 1 sibling (Pretend
you have one if you do not.); 1 friend.
$10 minimum per item
You may not give the exact same
gift for both months.
Use an ad with pictures to show price, item purchased,
and
store where purchased.. Minimum
gift price: $8.
Use debit
card for purchase. Record
in check register with the store name.
B.
Haircut
- 1 per month. Show proof
of cost from ad or business card from salon or barber shop.
Everyone must get a haircut once a month.
Use debit card and record name of salon or barber shop.
C.
Health & Beauty – 2
items per month not on your grocery list: Ex.
hair rollers, curling iron, razor, shampoo, conditioner, cologne, make-up,
etc.) Show proof of purchase with item, price, and place
purchased.
D.
Gym -
$40 per month --
Your apartment may have a gym or weight room you can use free.
Playgrounds do not count!
E.
Miscellaneous Item
- 1 extra item per month. Provide
proof of price, item, and place where
purchased. (Example: CD's,
extra clothing, something for your apartment, etc.)
Minimum Price: $10
VIII.
SAVINGS
v
You will save
5% of your monthly net income.
v
You may save more if you
would like. Include this in the Spendable
Income section on your budget. You may also include charitable donations here. (Ex:
Tithing, United Way, etc.)
IX.
DEBT
v
School Loans or Fees- (
Bank or School) These will be
included on your occupation slip. These
repayments are to be paid
monthly. If your occupation did not have an amount on it, you are
exempt from this cost.
v
Make checks payable
to the school or to a bank.
XI.
ANYTHING else
you might want in life include proof and record on your budget.
**IMPORTANT**
Ø
Label
all proof of purchases as
to what category of purchase they are
and what month they were purchased.
Ø
All ads and proof of
purchases must not be loose. They
must be attached in some way to the page ( glue, tape, staple,
scanned).
STEPS FOR LIFE PROJECT
1)
2 Movies total
2)
1 Sporting Event
3)
1 Cultural Event
4)
2 Clothing items per month
$8 minimum
5)
1 B’day per month
$10 minimum
6)
1 Wedding gifts per month
$10 minimum
7)
4 Christmas/Holiday gifts total $10
minimum
8)
1 Haircut per month
9)
2 Health & Beauty items per month
10)
1 extra item of your choice per month
v
(1) – (10) – show proof
w/ad, ticket, etc.
v
In your project, label the
item as what category & the month
v
Divide your binder into 2
months: April & May
Items (1) – (10) on #4 will be in both months
1)
Title Page
2)
Apartment
3)
Car & Car Payment Calculation
4)
Grocery List/Signed
5)
Pay Check Calculator Results
6)
Budget
7)
1 ½ Page Paper
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Marketing
Consultant
$42,480
$100 a month for College Loan/State Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Broadcast
Journalist $36,870
$100 a month for College Loan/State Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Probation
Officer
$38,760
$75 a month for Police Academy
Health Insurance: $125
monthly premium;
Dry Cleaning: $30 per month
Teacher
$39,700 $100 a month
for College Loan/State Univ.
Health Insurance: $2 monthly
premium;
Dry Cleaning: $30 per month
Physical
Therapist $45,350
$200 a month for College Loan/State Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $20 per month
FBI
Agent
$42,050
$100 a month for College Loan/State Univ.
Health Insurance: $250
monthly premium;
Dry
Cleaning: $30 per month
Flight
Attendant $30,300
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Electrical
Engineer
$47,775
$350 a month for College Loan/Private Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Social
Worker
$34,300
$100 a month for College Loan/State Univ.
Health Insurance: $200
monthly premium;
Dry Cleaning: $30 per month
Architect
$42,550 $150 a month
for College Loan/State Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Registered
Nurse
$40,350
$250 a month for College Loan/Private Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $20 per month
Psychologist
$41,870 $100 a month
for College Loan/State Univ.
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Postal
Worker
$35,850
Health Insurance: $250
monthly premium;
Dry Cleaning: $20 per month
Firefighter
$35,600 $50 a month for
Fire Training Program
Health Insurance: $125
monthly premium;
Dry Cleaning: $20 per month
Insurance
Broker
$35,650
$100 a month for College Loan/State Univ.
Health Insurance:
$80 monthly premium;
Dry Cleaning: $30 per month
Electrician
$36,600 $125 for
equipment loan
Health Insurance:
$120 monthly premium;
Dry Cleaning: $20 per month
Truck
Driver
$27,950 $50 a month to
Trucking Institute
Health Insurance:
$120 monthly premium;
Dry Cleaning: $20 per month
Secretary
$29,600 Health
Insurance: $250 monthly premium;
Dry Cleaning: $30 per month
Bank
Teller
$25,950 Health
Insurance: $250 monthly premium;
Dry Cleaning: $20 per month
Newspaper
Reporter
$30,670
$100 a month for College Loan/State Univ.
Health Insurance:
$250 monthly premium;
Dry Cleaning: $20 per month
Lawyer
$48,270 $350 a month
for Law School Loan
Health Insurance: $250
monthly premium;
Dry Cleaning: $30 per month
Mechanic
$33,550 $50 a month for
technical school loan
Health Insurance:
$120 monthly premium;
Dry Cleaning: $20 per month
Medical
Transcriptionist
$26,950
$150 a month for equipment loan
Health Insurance:
$120 monthly premium;
Dry Cleaning:
$20 per month
Construction
Worker
$24,650
Health Insurance: $120
monthly premium;
Dry Cleaning: $20 per month
Used
Car Sales Worker
$26,900
Health Insurance: $120
monthly premium;
Dry Cleaning: $20 per month
School
Bus Driver $24,750
$25 a month for CDL license
Health Insurance: $2 monthly
premium;
Dry Cleaning: $20 per month
Claims
Adjuster
$36,700
$100 a month State University loan
Health
Insurance: $120 monthly premium;
Dry
Cleaning: $30 per month
Sanitation
Engineer
$24,950
Health Insurance: $120
monthly premium;
Dry Cleaning: $20 per month
Photographer
$24,550
Health Insurance: $80
monthly premium;
Dry Cleaning: $20 per month
Monthly
Net Income
____________ ____________
Expenses
Month 1
Month 2
Security
Deposit
_____________
____NA_____
Application
Fee
_____________ ____NA_____
Phone
hook up Fee
_____________ ____NA_____
Phone
_____________
____________
Water
_____________
____________
Electricity
_____________ ____________
Gas
_____________
____________
Cell
Phone
_____________
____________
Laundry
_____________ ____________
Car
Payment
_____________ ____________
Car
Insurance
_____________ ____________
Gasoline
_____________ ____________
Health
Insurance
_____________ ____________
Debt
(School Loan)
_____________ ____________
Food
_____________ ____________
Cable
_____________
____________
Movies
_____________ ____________
Sporting
Event
_____________
____________
Cultural
Event
_____________
____________
Eating
Out
_____________ ____________
Clothing
_____________ ____________
B’day
Gift
_____________
____________
Wedding
Gift
_____________ ____________
Christmas/Holiday
Gifts _____________
____________
Haircut
_____________ ____________
Dry
Cleaning
_____________
____________
Health
& Beauty
_____________
____________
Gym
_____________ ____________
Miscellaneous
Cost
_____________ ____________
Savings
(5%)
_____________ ____________
Total Expenses
_____________
____________
Monthly
Net Income
_____________
____________
Less
(Minus) Total Expenses
_____________ ____________
=
Spendable Income
_____________
____________
(Income left after expenses)
Spendable
Income Plan: Show how you will spend or save your spendable income.
____________________
_____________
_____________
____________________
_____________
_____________
____________________
_____________
_____________
Balance
_____-0-_____
_____-0-______
[This is the answer to the question.]
Deborah Wilson
Teacher
$36,000
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