Calculating Your Future: Calculating Your Future: Personal FinancePersonal Finance

Reported by:Reported by:

Ashton Williams Ashton Williams

La Academia: Partnership Charter SchoolLa Academia: Partnership Charter School

Module OverviewModule Overview

Write Write SMARTSMART goals goals Manage personal financesManage personal finances Fictional character, JoeFictional character, Joe

JoeJoe

Age: 24 yrs oldAge: 24 yrs old Status: SingleStatus: Single Occupation: TeacherOccupation: Teacher Income: $33,000/ yearIncome: $33,000/ year Interests: Photography, working with Interests: Photography, working with

childrenchildren Goals: Pay off student loans, save Goals: Pay off student loans, save

money for a digital camera, teach money for a digital camera, teach photography to kids, etc.photography to kids, etc.

Budget FactsBudget Facts

Monthly income was $1,669.58Monthly income was $1,669.58

Nine expenses included in his Nine expenses included in his monthly budget planmonthly budget plan

Majority of his money went to Majority of his money went to savingssavings

Character's Name: JoeCharacter's Name: Joe

  

CategoryCategory Monthly Budget AmountMonthly Budget Amount

INCOME:INCOME:     

Wages/Income Wages/Income  $1,669.58$1,669.58   

     

EXPENSES:EXPENSES:     

FoodFood $150.00$150.00   

HousingHousing $225.00$225.00   

PhonePhone $50.00$50.00   

UtilitiesUtilities $150.00$150.00   

TransportationTransportation $45 $45   

SavingsSavings $634.58$634.58   

Photography classesPhotography classes $150.00$150.00   

Hobbies/EntertainmentHobbies/Entertainment $20.00$20.00   

MSCMSC $245.00$245.00   

Total spendingTotal spending $1,669.58$1,669.58 $0.00$0.00

Original Budget Categories Percentages Housing 14%

Saving 38%

Uitiltes 9%

Transportaion3%

Food 9%

Phone 3%

Photographyclasses 9%

Hobbies/Enterainment 1%

Miscellenous 15%

SpendingSpending

Budget plan had to be adjusted Budget plan had to be adjusted several timesseveral times

Travel, Medicare, Dining, Cable, Travel, Medicare, Dining, Cable, Laundry/Dry-Cleaning, and Clothes Laundry/Dry-Cleaning, and Clothes were added to Joe’s monthly budgetwere added to Joe’s monthly budget

Hobbies/Entertainment was divided Hobbies/Entertainment was divided into two separate categoriesinto two separate categories

Character's Name: Joe

   

Category Monthly Budget Amount Actual Amount: Month 1 Actual Amount: Month 2

INCOME:     

Wages/Income  $1,669.58    

     

EXPENSES:     

Travel $150.00 $226.00 $106.00

Groceries $75.00 $90.65 $55.81

Housing $450.00 $450.00 $450.00

Phone $45.00 $45.00 $45.00

Utilities $108.00 $108.00 $108.00

Cable $70.00 $70.00 $70.00

Transportation $50 $27.25 $70.00

Medicare $25 $25.00 $7.00

Savings $102.58 $0.00 $244.77

Laundry/Dry Cleaning $20.00 $17.75 $12.00

Clothes $100.00 $105.00 $126.00

Photography $60.00 $55.49 $25.00

Entertainment $175.00 $245.00 $83.00

Dining $115.00 $123.95 $110.00

Hobbies $14.00 $14.00 $0.00

MSC $110.00 $77.55 $157.00

Total spending $1,669.58 $1,680.64 $1,669.58

Photography

0

20

40

60

80

100

120

140

160

Original Budget Adjusted Budget

Entertainment

0

50

100

150

200

Original Budget Adjusted Budget

Character’s WishCharacter’s Wish

Caribbean vacation with friendsCaribbean vacation with friends

Why?Why?• He needs a break from workHe needs a break from work• Spend time with friendSpend time with friend• RejuvenationRejuvenation• He has the extra moneyHe has the extra money

Savings PlanSavings Plan

Joe needs to save a total of $1100 for Joe needs to save a total of $1100 for one yearone year

His money will be deposited into a His money will be deposited into a savings account with an interest rate savings account with an interest rate of 3.45%of 3.45%

Three months- $300.87Three months- $300.87 Six months- $604.70Six months- $604.70 Twelve months-$1219.51Twelve months-$1219.51

Banking OptionsBanking OptionsInstitutions Type of

AccountInterest rate Monthly Fee Restrictions on

AccountMinimum

Balance

Ing Direct Savings 2.96% $0 No Check Writing To open: $1To Avoid fee: $0

HSBC Direct Savings 3.45% $0 No Check Writing To open: $1To Avoid fee: $0

M&T Bank Money Market 3.20 $0 To open: $25To Avoid fee: $0

Discover Bank CD 2.72 $0 To Avoid fees $2500

Wachovia Bank Money Market 0.04 $10.00 To open: $1000To Avoid fee: $0

Allstate Saving 2.71 $4.00 No Check Writing To open: $100.00To Avoid fee:

$500.00

Savings plan interest rate 3.45%

Money deposited into savings each month $100.00

Number of times per year that interest is compounded 12

Number of months since first deposit

Savings balance at beginning of month

Interest earned during month

Balance including interest earned

Monthly deposit made

Savings balance at end of month

1 $0.00 $0.00 $0.00 $100.00 $100.00

2 $100.00 $0.29 $100.29 $100.00 $200.29

3 $200.29 $0.58 $200.86 $100.00 $300.86

4 $300.86 $0.86 $301.73 $100.00 $401.73

5 $401.73 $1.15 $402.88 $100.00 $502.88

6 $502.88 $1.45 $504.33 $100.00 $604.33

7 $604.33 $1.74 $606.07 $100.00 $706.07

8 $706.07 $2.03 $708.10 $100.00 $808.10

9 $808.10 $2.32 $810.42 $100.00 $910.42

10 $910.42 $2.62 $913.04 $100.00 $1,013.04

11 $1,013.04 $2.91 $1,015.95 $100.00 $1,115.95

12 $1,115.95 $3.21 $1,119.16 $100.00 $1,219.16

Savings Plan Savings Plan SpreadsheetSpreadsheet

Savings Plan

0

500

1000

1500

1 2 3 4 5 6 7 8 9 10 11 12

Months

Mon

ey In

Acc

ount

ConclusionConclusion