managing your money budgeting for the real world 1
TRANSCRIPT
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MANAGING YOUR MONEY
Budgeting for the Real
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How do you spend money?
??
?
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Words to Know
INCOMEAmount of money earned from wages or other sources
BUDGETA plan to cover expenses with available income
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Opportunity Cost
vs.
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Party
Shop
Study/Work
Bills/Expenses
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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
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Monthly Budget Worksheet
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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
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Transportation Options
Used CarMonthly $175Insurance $
50Gas $100Maintenance $
50
Public Transportation
Monthly $150
New CarMonthly $270Insurance $
70Gas $100Maintenance $
25
15% of Income
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Food Options
Groceries $200Groceries $150Eating Out $200 Eating Out $525
15% of Income
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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
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Shirt $25
Pants $25
Shoes $50
Toiletries$20
Haircut$30
Other
?
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Savings10% of Income
Pay Yourself First$246
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BANK
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Recommended Budget
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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%