1. Name ____________________ Date _________ Period ______
Making Ends Meet
Scenario: You have just received your diploma and are about to enter the
real world. You will be given a career with a set income and your task is to
create a realistic budget. An even bigger challenge is to live within that
budget.
Task: A budget starts with knowing how much money you bring in each
month. This is called your income. Expenses are the opposite of income.
Money is spent on the things you need or want. Below are some basic
categories of expenses. Your expenses need to be less than your monthly
income. If not, you will need to change your spending habits. Also, if
your savings is not at least 5% of your income, you will need to adjust
your spending habits.
Below is a list of common expenses with the suggested amounts.
 Student loans - $400 per month for the following jobs: Teacher,
College Professor, Biologist, Engineer, Nurse, Webmaster,
Psychologist, Advertising Manager, Medical Lab Tech, Forester,
Bookkeeper, Loan Processor, Pastor
 Basic health insurance - $200 per month for all other jobs
 Food
 Clothing
 Miscellaneous (5% of your net monthly income)
 Savings (5% of your net monthly income)
 Home Phone
 Cable
 Entertainment
 Pet and pet supplies
The following will be researched to determine your monthly spending:
 Housing
 Utilities (10% of your rent or mortgage)
 Transportation (car payment, insurance, gas)
 Cell Phone

2. Part One
Occupation: You will be assigned an occupation by luck of the draw. Fill
in the sections below using the information on the occupation cards given to
you by your teacher.
Occupation _______________________
Annual Gross Income ___________
Gross Monthly Income ___________
(income divided by 12)
Net monthly income ___________
(gross monthly income multiplied by 0.80)
*This is your take home pay after taxes.

3. Part Two
Housing: Choose a housing preference using the information provided.
Housing should be no more than 30% of your monthly net income. (0.30
multiplied by net monthly income)
How much money can you afford for housing? _______________
Which housing option did you choose? ______________________
What is your housing cost? ____________
What percent is this of your net monthly income? ____________
Utilities are 10% of your monthly housing costs. This includes gas, water,
electric, and garbage collection.
What is your utility cost? ____________
Type of housing Mortgage payment Rent
Apartment X $450
Condo $1,000 $750
Townhome $1,300 $850
House $1,500 $950

4. Part Three
Transportation: Use the car magazines provided to choose a car you
would consider owning. You will have no money available for a down payment.
Car Monthly Payment
(5 years at 3.0% APR)
Total cost for
Transportation
Gas + Insurance + Payment
If you find you cannot afford a car, you may pay $100 per month for use of
public transportation.
Car Payment Calculation
The bank has granted each of you a 5 year loan at a 3.0% interest rate.
What is the cost of the car you chose? _____________
To find the cost per month, divide by 60.
(Because 5 years x 12 months = 60)
+
+
Now find the cost including interest:
Multiply the monthly payment by 0.03.
=
Add the monthly car payment and the interest together.
What is your total monthly car payment?
You must also add the cost of basic car insurance ($100) and the cost
of gas ($20-100)
$100 + _________ + __________ = $ ____________
(insurance) (gas) (car payment) TOTAL TRANSPORTATION COST

5. Part Four
Flexible Estimated Expenses: Determine on your own the possible
monthly cost of the following items.
Category Monthly Cost
Food
Clothing
Home Phone
Cable & Internet
Entertainment (movies, restaurants, events)
Pet and Pet Supplies
Miscellaneous (2%)
*Cell Phone
*Research the provided cell phone plans to determine which plan best fits
your budget and meets your needs.
Total Estimated Expenses ___________________

6. Part Five
Data Entry: During class enter the information you have collected about
your monthly expenses into the “Monthly Budget Record” (from student loan
down to savings). Make adjustments to your spending if necessary in order
to meet project goals.
* Save 5% of your income
* Don’t spend more than you earn
Part Six
Make a Circle Graph: Use the data from your Excel worksheet to make
a circle graph. (Directions will be on zmath.edublogs.org). We will use an
online website to help us build our graphs

7. MONTHLY BUDGET RECORD
OCCUPATION: ______________________
INCOME EXPENSES PERCENT OF
INCOME
NET MONTHLY
INCOME
X X
CLOTHING X
HOUSING X
UTILITIES X
TRANSPORTATION X
ENTERTAINMENT X
MISCELLANEOUS X
FOOD X
PHONE X
CELL PHONE X
STUDENT LAON X
HEALTH
INSURANCE
X
PETS X
CABLE X
TOTAL X
My 5% goal to save ______________
ACTUAL SAVINGS ______________ = ________%
(Total income minus total expenses)