Personal Budget Planning Project
OBJECTIVE
The objective of this project is for you to set up a budget that would allow you to live the type of life you would like, as well as to understand what skills and/or education you need to get there. This will include finding a house, finding a car, developing a budget, and finding a career that would match your income needs. This project does involve doing some calculations and setting up a budget on Excel, but it's main purpose is to allow you to have fun dreaming of the future while realizing what these dreams may cost. I also hope you observe certain iron realities about work and what it takes to be a successful adult in the world today. It is not easy. It takes lots of money!
During this project you will need to fill out and then printthis worksheet. You will also have a master spreadsheet that will show all your calculations and contain a working budget. Your expenses must fall within your income! Be advised!
TASKS
You will need to have a partner to complete this project. Essentially, each of you will be required to set up a monthly budget. You will be required to set up your budget on Excel, and then get your information off the internet, noting the sites that you used. The preparing of the budget will include you finding out what type of careerswill provide you with the necessary income, and how much education is needed for such a career. This project consists of two steps:
- You will - within limits and with teacher approval - select your own career. No matter what your job might be, you must construct a working budget with costs less than expenses.
- You will construct a budget according to thejobthat you have discussed andchosenwith your teacher.
No matter what job you have you must first deal with your housing. You will need to find a houseor apartment that you can afford. You can have roommates, if you need help in covering the monthly rent or mortgage. Next, you must find a caror other type of transportation, and then set up a budget. Then you must fill out the worksheet,print it out, then and discuss it with your teacher.
After completing the preliminary budget, you will exchange your budget with your partner. At this point your partner will reviewthe project, looking for calculation errors and commenting on how realistic the budget is.
To complete the project, you will need to make revisions to your original budget, explaining your reasons for doing so.
Each part of the project is detailed below.
FINDING A CAREER
Now it's time to find a career. Using this link to the U.S. Government'sOccupational Outlook Handbook, find a career that you are interested in and that will give you the needed income to afford the lifestyle you want. Include the amount of education needed for your career. Use the website above to get your median yearly income.
As soon as you have found a career, come and talk to Mrs. Denning to approve your career choice. You will need to have your project worksheet filled in for her to check. Then find out your net earnings, after taking outfederal income taxandstate income tax. Your social security tax will be 6.2% of your gross income is you are employed by someone else, 12.4% if you are self-employed.
Enter all this into your budget spreadsheet. You will then have your net yearly income. Use the budget sheet that we set up for the activity Janna's Budget. Youwill need to add the remaining months to make a budget for a full year. You will need to make a copy of this by saving as a new file. Do not copy over the existing file!!!
NOTE:Be sure that you have copied the necessary information into yourproject worksheetand your budget spreadsheet.
***You may not choose to be an actress, actor, singer,entertainer or major league sports figure.***
FINDING A HOUSE
After you have a career and an income, you need to try and get a house to live in. Almost everyone has an idea of where they would like to live, and what type of house they would like to own. It's your job to search for your dream house. After you do so, make sure to note where the house is located, and what the selling price is. Also make sure to note the URL that you used.
Here are some rsources to help you in your search:
When you find the house you want, come talk to Mrs. Denning and get approval for a loan from the bank.
If you cannot afford to buy a house, search for an apartmenthere.
NOTE:Be sure that you have copied the necessary information into yourproject worksheetand your budget spreadsheet.
FINDING A CAR
Most people also have ideas on what type of car they would like to own. Use the links below to find your dream car. Make sure to note the price of the car. Also make sure to note the URL that you used.
NOTE:Be sure that you have copied the necessary information into your project worksheet and your budget spreadsheet.
SETTING UP YOUR BUDGET
The next step is to set up your budget. This will entail the following steps:
REVIEWING THE BUDGET
Time for a reality check. At this point, change worksheets with your partner. Once you have your partner's worksheet, you need to do two things:
- double check the calculations (example 1,example 2), and
- check with Mrs. Denning to see how realistic the budget is.
Now, write a recommendation to your partner explaining how realistic their budget is, and making suggestions on any necessary changes.
COMPLETINGTHE PROJECT
To complete the project, make any changes to your budgetTHAT YOU CONSIDER NECESSARY(not necessarily the changes your partner recommended). Write a summary of the changes you made, and why you made them.
Make sure you heed Mrs. Denning's comments!
The completed project should contain the following:
- Spreadsheet submitted electronically
- Project Worksheet submitted electronically
- Recommendations that you made to your partner, submittedelectronically
- Summary of the changes you made submittedelectronically
Use the dropbox on the class websitetooturn allinformationin at one time.
The final step of this project, is to create seven slides using some type of presentation software about your budget and lifestyle. Your presentation should have the following:
- Title Slide
- An opening slide which includes your name and the basics of your career, education, and family (life)
- a slide that shows the yearly income you earn and the various taxes you pay (income and taxes)
- a slide that shows the chosen vehicle and specific information about your automobile (color, year, maker, radio, airbags, financing, etc.) (vehicle info.)
- a slide that has the information about your car (monthly payment)
- a slide that shows all thedetails about house, where it is located, other miscellaneous information, etc (house info.)
- a slide that shows your house/apartment and where you obtained your mortgage, what interest you pay, number of months of loan, etc. (house payment)
- Your monthly budget, including all expenses balanced against your net pay (monthly budget)
- Agraph, created in Excel and exported to PowerPoint, that helps explain outflows vs. inflows, with the money left over (graph)
- and lastly, a slide that explains what you learned in this project (learned)
Each slide need only be a brief synopsis of what you have in your report. Keep it simple yet informative.Copyandpasteas many spreadsheetsstraight from Excel into PowerPointas possible!
After I receive and view all your work, Mrs. Denning will evaluate it according tothis rubric.
As a financial planning expert with a comprehensive understanding of personal budgeting and financial management, I have successfully guided numerous individuals in creating effective budget plans to achieve their financial goals. My expertise extends to various aspects of personal finance, including income optimization, expense management, investment strategies, and long-term financial planning.
In relation to the provided article on the "Personal Budget Planning Project," let's delve into the key concepts and steps involved in this comprehensive project:
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Finding a Career:
- Utilize the U.S. Government's Occupational Outlook Handbook to explore and select a career.
- Verify the necessary education level and determine the median yearly income for your chosen career.
- Seek approval from Mrs. Denning after discussing your career choice and completing the project worksheet.
- Calculate net yearly income by considering federal and state income tax, as well as social security tax.
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Finding a House:
- Search for a dream house using online resources such as Realtor.com, Trulia.com, HomeFinder.com, or Zillow.com.
- Note the location, selling price, and URL of the chosen house.
- Seek approval for a loan from the bank with Mrs. Denning if buying a house, or consider an apartment if purchasing is not feasible.
- Update the project worksheet and budget spreadsheet with relevant information.
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Finding a Car:
- Use Microsoft Carpoint and autotrader.com to find your dream car, noting the price and URL.
- Update the project worksheet and budget spreadsheet with car-related information.
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Setting Up Your Budget:
- Calculate monthly mortgage and car payments, considering a 5% down payment for the mortgage.
- Ensure that housing and car payments do not exceed recommended percentages of gross monthly income.
- Examine the budget spreadsheet for remaining household expenses and double-check calculations.
- Update the spreadsheet with household expenses.
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Reviewing the Budget:
- Exchange worksheets with your partner and double-check calculations.
- Consult Mrs. Denning to assess the realism of the budget.
- Provide recommendations to your partner on the budget's realism and suggest necessary changes.
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Completing the Project:
- Make changes to your budget as deemed necessary, considering Mrs. Denning's comments.
- Submit electronically: spreadsheet, project worksheet, recommendations to your partner, and a summary of the changes made.
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Creating Presentation Slides:
- Develop seven slides using presentation software, covering key aspects:
- Title Slide
- Career, education, and family overview
- Yearly income, taxes, and deductions
- Vehicle information (make, year, color, financing details)
- House details (location, mortgage information)
- Monthly budget with expenses and net pay
- Graph illustrating outflows vs. inflows and remaining money
- Reflection on lessons learned from the project
- Develop seven slides using presentation software, covering key aspects:
Remember to keep the presentation informative yet concise, and utilize Excel spreadsheets for a seamless transfer of data to PowerPoint. Mrs. Denning will evaluate the final project based on the provided rubric.
