You have just graduated from college, moved to the city of your dreams, and have been hired for the job you have been preparing for since high school!
Your task is to:
1) Develop a monthly budget that will help you manage your repayment obligations and establish a sound credit history.
2) Design a personal budget spreadsheet that includes your gross yearly income, gross monthly income, amount of taxes you will pay, and net monthly income, calculates your total monthly expenses and figures the amount of discretionary income--fun money--you will have left at the end of each month.
3) Evaluate your completed budget to decide if you can afford your style of living and answer some "what if" questions that will help you make some decisions about your future career choice and how you plan to spend your money.
In order to complete the task you will first need to find out the gross (before taxes) yearly salary you will receive on your dream job and then determine your net (after taxes) monthly income. Once this is done, you will need to do some additional research to determine your basic living expenses. Once you have collected this information, you will create a budget using Microsoft Excel and input the data you have collected. Once the data has been entered into the spreadsheet, you will need to analyze the results and determine if there is a need for change. Will you be able to make all of your payments or will you need to increase income/decrease expenses in order to make ends meet?
(You may contact me at Independece High School for the complete lesson plan.)