Income• Gross Income Formula:
• Net Income:
• Other Income: Interest/DividendsStudent
Loans/Scholarships/GrantsFamily Contributions
Housing
Housing formula: No More than 33% of Net Income
Find an apartment that fits within your budget
Renter’s Insurance: $15/month
Electricity: Calculate using $.07/square foot
College Costs
• These costs will be offset by Student Loans, Scholarships, Family Contributions to help cover these costs
• Go to the college website that you are most interested in and find out the info related to college costs
Daily Living Costs (Food and Grocery)
Find the cost of food based on the USDA chart• Thrifty Plan - low cost meats and canned fruits & vegetables (ie: Grocery Outlet)
• Liberal Plan - High quality meats and produce, organic foods (Whole foods, PCC)
• Household Supplies (Paper Towels, Napkins, TP, Soaps etc) - $20/month
• Laundry Supplies $10 – 15/month
• Dry Cleaning $0-20/month
• Cell Phone $40-80/month
• Internet $30-80/month
• TV $20-80/month
TransportationUse the Income to Debt Ratio Formula to calculate how much you can afford for a monthly car payment:(Gross Income x .42%) – Fixed Expenses (rent)=How much you can afford for monthly car payment
GAS: Average American drives 1000miles/month, then divide MPG into 1000 miles = # Gallons …
# Gallons x $2.80 = How much you will spend each month for GAS
INSURANCE: Generally (girls - $75-200 depending on driving record)
(guys - $100-300 depending on driving record)
REPAIRS/MAINTENANCE: $.35 per mile driven (ie: $350/month) – Less if a new car
TABS: $50-100/Year (/12 months)
PUBLIC TRANSPORTATION: Bus Pass (check cost on-line)
Health Costs
Go to Lifewisewa.com to find the cost of health insurance.
Find the cost of Bronze, Silver and Gold Plans.
Look at the premium and deductible for each plan:
Check costs of Co-pays and prescriptions
Entertainment, Recreation, Gifts/Charities, Personal Items, Financial Obligations
•Use you own background, experiences and research to complete these sections
SummaryCompare your Income to Expenses.
If income is more than expenses, then decide where to increase spending to match income.
If expenses are more than income where you will reduce? Reduce spending until it equals income.
To Calculate Percentages: Divide the Category Total by the Net Income
FINAL REFLECTION QUESTION:
List 3 things you have learned through doing this PMB project.