You are living on a budget and completing an answer sheet to calculate your monthly income and expenses. You show your work to calculate your net monthly income after taxes. You then select two mutual funds to invest in each month and explain your choices. You choose an apartment, providing the address, rent costs, and utilities. You explain your decision. You also select a vehicle, providing details on payments. You calculate insurance costs and select health and credit card plans. You create a monthly menu and grocery shopping list. You calculate savings, student loan amounts, and repayment plans over 10 years.

1. Name __________________
Living on a budget
ANSWER SHEET
DIRECTIONS: Place all of your answers on this sheet along
with any required work that needs to be shown.
Step 1: Show me the money (10 pts)
(1 pt each)
MONTHLY INCOME
Gross Net Income
FED TAX State TAX FICA
Income *
$ $ $ $ $
* Put this figure on the final budget chart
What you need to know to figure your MONTHLY NET INCOME:
Your federal income tax rate is 15%
Your Maryland state income tax rate is 7.83% (which includes 2.83% to
Baltimore County, where you live)
FICA – or Social Security and Medicare – is 7.65% (the good news here is
you only have to pay this much as an employee – your employer picks up
the other half! If you were self-employed it would be twice this!)
Be sure to show your work (5 pts)
for all sections above right here when computing your
income and withholding figures!

2. Step 2: Pay yourself 1st! (10 pts)
T Rowe Price mutual fund # 1 ___________________
How much invested each month ______________
Why you selected it? (3 pts) – Be sure to include at least 2
stocks (actual companies) that are included in the mutual
fund.
T Rowe Price mutual fund # 2 ___________________
How much invested each month _____________
Why you selected it? (3 pts) - Be sure to include at least 2
stocks (actual companies) that are included in the mutual
fund.
Step 3: Home, sweet home (15 pts)
Remember to show your work here (5 pts) to
calculate your maximum monthly rent (your half of the total cost!)
ADDRESS _______________________
WEBSITE ________________________
TOTAL MONTHLY RENT $ ___________
RENT (per month) – your part only $__________ * Include this figure
on the budget chart

3. UTILITIES (gas and/or electric) INCLUDED: Yes ____ or No ____
If No, you must calculate the approximate cost for utilities. To
obtain this information you need to phone BG&E at 410-685-0123 and
give them the actual address of the place you want to rent. Please
explain what you are doing and be polite when asking! Since BG&E is a
public utility this data is public information! (2 pts)
Briefly explain why you two decided on this
apartment (location, amenities (what’s this?), price, whatever your
rationale! Also, include either a picture of the place or a floor plan.
Finally, describe your cable TV, cell phone, and internet plans and
the cost of each. (5 pts)
Step 4: Hot wheels! (22 pts)
To figure your payment, use the following:
LOAN TERM:
2007, 2008, 2009 models maximum of 60 months
2005, 2006 models maximum of 48 months
2004 model maximum of 36 months
INTEREST RATE:
Based on your credit rating
(Circle your credit rating based on your GPA) – (1 pt)
A 800-850 score 6%
A- 750-799 score 7%
B+ 700-749 score 8%
B- 650-699 score 9%
C+ 625-649 score 11%
C- 600-624 score 13%
D 550-599 score 15%
E= below 550 can’t get a loan rate

4. To figure your rating, use your unofficial transcript (provided by the
records office) to compute your GPA thru the most recent quarter
(spring, 2010) and convert it into your credit score
Circle your GPA - (1 pt)
A 3.8 + GPA
A- 3.5 – 3.79
B+ 3.25 – 3.49
B- 3.00 – 3.24
C+ 2.75 – 2.99
C- 2.50 – 2.74
D+ 1.90 – 2.24 E = Do we really need to go there?
D 1.75-1.89
My GPA is ______ therefore my credit score is
_______ and, therefore I can expect an interest
rate of _______ (1 pt each)
My monthly car payment
$
KBB Retail Price or actual price (whichever is less)
Plus - Tags $140.00
$
= Gross amount due
$
Plus MD title tax (6%)
$
= NET amount due
$
LESS Down payment (10%)
$
LOAN AMOUNT – This is what you’ll finance
(2 pts for each answer in chart)

5. In a well-written statement explain how you decided
on what vehicle to purchase, including at least 4 features it has and
how your grades affected your monthly payment. And then, don’t
forget to put your final car payment in the appropriate section of
your budget chart. (5 pts)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____________
Step 5: Not so fast! (10 pts)
To solve this word problem you first need to
write out a basic math formula to use – so what is it? Remember, you
drive 12,000 miles in a year, spend an average of $2.50 per gallon of gas,
and only need to find out what your car’s MPG, or miles per gallon is to
do this! Be sure to show your work right here! (5 pts)

6. Step 6: Are you in good hands? (9 pts)
So where did you rate as a driver? Briefly
explain here what your personal insurance rate is using the actual
State Farm Insurance policy that best fits your situation – sex,
grades, driving record, residency and then put the insurance figure
in the appropriate place on the budget worksheet. You can get the
actual cost for a 21-year-old driver from a real policy from Mr.
Martin, who has policies written by State Farm Insurance. And
remember, your grades, again, affect your overall cost of insurance.
Be sure to note, too, which part of the car insurance policy is the
most expensive – and why? (5 pts)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
______
As for disability and health insurance, how did you figure these two
out and what health plan did you ultimately decide on, and why? (2
pts for each)
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

7. Step 7: What’s in your wallet? (5 pts)
Explain here why you chose the credit
card you did. Be sure to include the rate you’ll pay (any
intro rate, if it applies and for how long), any rewards
program you will benefit from, and exactly how you will
plan to use the card and your new found credit and how it
can help you. (5 pts)
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Step 8: Food for thought (35 pts)
(1 Pt for daily meals, 5 pts for your grocery list)
Use the calendar provided to create your monthly menu
and shopping list!
Step 9: Time is money (8 pts)
(2 pts for each)
Savings for Half Century
Total $ invested each month $
Total $ invested in one year $
Total $ invested over 50 years $
Total Amounted accumulated $

8. Step 10: Paying for that sheepskin
To know how much you took out go to
http://www.staffordloan.com/stafford-loan-info/faq/whats-the-
difference-between-unsubsidized-and-subsidized-loans.php and check
out the chart for the maximum amount that can be borrowed. Add up
the 4 years and use that total for your total student loan. Then make
sure you locate the annual interest rate you’ll pay (this can be found on
the link provided) when you start repaying the loan and figure your
payment over a 10-year period.
To calculate your monthly payment, use this link. Put your final answer
in the appropriate place in the budget.
http://www.finaid.org/calculators/loanpayments.phtml
Federal Stafford Student Interest
Loan $
Loan Rate
Freshman year
Sophomore year
Junior year
Senior year
TOTAL *
• To calculate the overall rate average the rates of all 4 years
My total monthly payment for my student loan will be $ ________ per
month for _____ years.
Step 11: A slice of pie (25 pts)
My finished pie chart in color using Excel – 25 points per the
instructions (see attached rubric for the pie chart)
Step 12: In the red or black (40 pts)
Y our final step in completing your budget is to analyze your finished
product, including chatting with your parent(s) or guardian(s)
about how you spent and saved your hard-earned money, what
they think of the whole project and just how you could – if needed –
make any necessary adjustments. This will be completed as a
homework assignment

9. My Monthly Budget (21 pts)
(1 pt each category)
Monthly Budget
INCOME
TOTAL GROSS INCOME $
Taxes – Fed, state, FICA (subtract $
from Gross)
= NET or DISPOSABLE INCOME $
EXPENSES
Pay yourself 1 – savings
st
$
Housing - rent $
Utilities – gas & electric $
Cable TV/internet $
Transportation
Car payment $
Car insurance $
Gas $
Other Insurance – health, etc. $
Medical - Rx $
Food – home/dining out1 $
Retail – Clothing2 $
Retail – Other (Target, etc.)3 $
Cell phone $
Laundry costs4 $
Installment loans
Student Federal Direct5 $
Total Expenses (add all expenses) $
Subtract total expenses from disposable income
and record answer below
Discretionary Income (hopefully $
what’s leftover!)