MANAGING YOUR MONEY Budgeting for the Real World 1

MANAGING YOUR MONEY

Budgeting for the Real

World1

How do you spend money?

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2

Words to Know

INCOMEAmount of money earned from wages or other sources

BUDGETA plan to cover expenses with available income

3

Opportunity Cost

vs.

4

Party

Shop

Study/Work

Bills/Expenses

U.S. Average Income

PAY STUB

Annual Gross Income $ 35,950

Annual Taxes $ 5,498

Annual Healthcare $ 698

Annual Net Income $ 29,556

Monthly Take-Home Pay $ 2,463

5

Monthly Budget Worksheet

6

Housing Options

Live at Home$250

2 Bedroom Apartment/Roommat

e$650

Studio Apartment/Living Alone

$1,000

25 – 30% of Income

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Household Expenses5% of Income

At Home $ 0With Roommate $ 75On Your Own $100

At Home $ 0With Roommate $ 40On Your Own $ 80

At Home $ 0With Roommate $ 20On Your Own $ 40

Talk and Text $ 40

Talk and Text and 3 GB Data $ 65

(essential)

(optional)

(optional)

(optional)

Cable

8

Transportation Options

Used CarMonthly $175Insurance $

50Gas $100Maintenance $

50

Public Transportation

Monthly $150

New CarMonthly $270Insurance $

70Gas $100Maintenance $

25

15% of Income

9

Food Options

Groceries $200Groceries $150Eating Out $200 Eating Out $525

15% of Income

10

Entertainment Options

Movie Download $7

Date Night$100

Travel$100

Hobbies$100

Sports Game $60

Concert $60

Movie in Theater$15

5 – 10% of Income

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Looking Good Options5% of Income

12

Shirt $25

Pants $25

Shoes $50

Toiletries$20

Haircut$30

Other

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Savings10% of Income

Pay Yourself First$246

13

BANK

Recommended Budget

14

5%Debt Payments

Healthcare

Clothing

Utilities

Savings

Entertainment and Discretionary

Transportation

Food

Housing

(credit cards, student loans)

5%

5%

5%

10%

10%15%

15%

30%