Lesson 9
Scenario 1:
Nate is a junior in high school. He works 15 hours a week at the mall, and his net income after taxes is $600 a month. He lives with his parents, so he doesn’t have rent, utility or food expenses. His older brother owns a car and lets him borrow it to drive to work for $50 each month; otherwise Nate takes the bus. He really wants to buy a car, so he puts any leftover money toward savings. Nate also pays for his cell phone and personal expenses, such as going to the movies, buying video games and purchasing gifts.
Below is Nate’s estimated budget and what he actually spent in one month’s time. Analyze Nate’s spending to determine why he is not on track to save for that new car, and what changes he can make to get on track. Nate should cut back on his spending for other things and put it towards the car.
Scenario 2:
Maria just graduated from college and accepted her first job as a social media manager for a real estate company. She can’t believe that her monthly net income will be $3,000. She just moved into a one-bedroom apartment, so she is responsible for rent, utilities, food and other household expenses. She is paying off a student loan and she wants to save as much money as she can to buy a house someday. She owns a car and enjoys going out with friends on the weekend.
Below is Maria’s estimated budget and what she actually spent in one month’s time. Analyze her spending to see why she is not on track to meet her goal and to determine what she can do to get back on track. It would be best for Maria to limit her expenses for things like personal shopping and entertainment, as well as not going out as much.
Scenario 3:
Jamal is a senior in high school and works 30 hours per week at a neighborhood coffee shop. His net income after taxes is $1,500 and he is saving up for college. He owns a car and makes payments toward it each month, but he lives with his parents so he saves on rent, utilities and food costs. He occasionally goes out with friends and buys things for himself, but he tries to hold back on these things so he can save more for college next year.
Below is Jamal’s estimated budget and what he actually spent in one month’s time. Analyze his spending to see why he is not on track to meet his goal and determine what he can do to get back on track. As close to being on track as Jamal is, it wouldn't hurt to lessen his spending regarding entertainment and personal shopping.
You just accepted your first job and you’ll be earning a gross income of $30,000/year. You live on your own and are responsible for all expenses, including rent, car, insurance, cell phone, utilities, entertainment, food, savings and miscellaneous expenses. You have to pay 25% of your gross income in taxes.
Calculate Your Take Home Pay: $22, 500
Net Income: $1,875/month
Nate is a junior in high school. He works 15 hours a week at the mall, and his net income after taxes is $600 a month. He lives with his parents, so he doesn’t have rent, utility or food expenses. His older brother owns a car and lets him borrow it to drive to work for $50 each month; otherwise Nate takes the bus. He really wants to buy a car, so he puts any leftover money toward savings. Nate also pays for his cell phone and personal expenses, such as going to the movies, buying video games and purchasing gifts.
Below is Nate’s estimated budget and what he actually spent in one month’s time. Analyze Nate’s spending to determine why he is not on track to save for that new car, and what changes he can make to get on track. Nate should cut back on his spending for other things and put it towards the car.
Scenario 2:
Maria just graduated from college and accepted her first job as a social media manager for a real estate company. She can’t believe that her monthly net income will be $3,000. She just moved into a one-bedroom apartment, so she is responsible for rent, utilities, food and other household expenses. She is paying off a student loan and she wants to save as much money as she can to buy a house someday. She owns a car and enjoys going out with friends on the weekend.
Below is Maria’s estimated budget and what she actually spent in one month’s time. Analyze her spending to see why she is not on track to meet her goal and to determine what she can do to get back on track. It would be best for Maria to limit her expenses for things like personal shopping and entertainment, as well as not going out as much.
Scenario 3:
Jamal is a senior in high school and works 30 hours per week at a neighborhood coffee shop. His net income after taxes is $1,500 and he is saving up for college. He owns a car and makes payments toward it each month, but he lives with his parents so he saves on rent, utilities and food costs. He occasionally goes out with friends and buys things for himself, but he tries to hold back on these things so he can save more for college next year.
Below is Jamal’s estimated budget and what he actually spent in one month’s time. Analyze his spending to see why he is not on track to meet his goal and determine what he can do to get back on track. As close to being on track as Jamal is, it wouldn't hurt to lessen his spending regarding entertainment and personal shopping.
You just accepted your first job and you’ll be earning a gross income of $30,000/year. You live on your own and are responsible for all expenses, including rent, car, insurance, cell phone, utilities, entertainment, food, savings and miscellaneous expenses. You have to pay 25% of your gross income in taxes.
Calculate Your Take Home Pay: $22, 500
Net Income: $1,875/month
Assess Your Budget: The information in the above table accounts for all 100% of the monthly net income provided.