4.01 BUDGET PROJECT
THE GAME OF LIFE
Directions: For this project, you will learn what it is like to live in the real world! You will create a
monthly budget to show the income that you would earn from a realistic job and the monthly
expenses that you will need (rent, utilities, transportation, food…) It may be difficult to understand
working in order to pay for things, but hopefully this will give you a good idea of what you need to
plan for in the future.
Part 1 (Career)
Assume you have just finished college (4-year, 2-year, or trade school). You will be at the bottom
of your profession so you will be earning entry level pay. YOU MAY NOT CHOOSE TO BE A
MUSICIAN OR AN ATHLETE BECAUSE THOSE INCOMES ARE TOO HARD TO GAUGE. You
do need to pick an APPROPRIATE career! Also, remember that doctors require a longer school
(4 more years added to college), so you would need to factor in the cost of graduate school.
Use the following website to find the career of your choice. http:www.f4k.org
Part 1 Career Questions:
a) My career choice:
b) My starting salary (lowest salary option):
c) What is the job description? What the duties required for that specific job?
d) Why did you chose this specific career?
e) How are you qualified for this career? Where did you graduate from college and what
degree did you earn?
f) Don’t forget about taxes. About 25% of your paycheck will go towards taxes! You should
take out 25% of what you earn in order to pay the government. Salary * .25=Taxes
Part 2 (Living)
Obviously, you have to find a place to live. Assume that you will be working and living in the
triangle area. You do not have to stay in the Wake Forest/Wakefield area, but you do need to find
an apartment in the triangle area. You CAN NOT have a roommate, so you need to plan to pay
for the whole rent.
Use the following website to find the apartment of your choice. You will need to type in a zip code
to search for apartments in a specific area. http://www.apartmentfinder.com/
Part 2 Living Questions
a) My apartment:
b) Why did you choose to live here?
c) What is the cost PER MONTH to rent this apartment?
d) What amenities are included in your apartment?
e) Include a picture of your apartment and the floor plan that you selected.
Part 3 (Transportation)
You WILL need to purchase a car in order to get to and from your new job. You get to pick out
whatever type of car you want, meaning you can pick fancy or old as long as it will fit into your
budget. You will need to consider the cost of gas in order to factor that in to your budget as well.
Use the following website to find a car that you would like to purchase. http://www.cars.com/forsale/
Part 3 Transportation Questions
a) My car choice:
b) The total price for the car:
c) Multiply your total price * .075 (Tax) =
d) Add your tax back to the price of the car =
e) Multiply the total of the car (after tax) * .05 (Interest) =
f) Now add the interest to the total of the car =
g) Divide the total by the amount of months it will take you to pay for your car (typically 60
months) =
h) My monthly car payment = $
Part 4 (Extra Expenses)
Now you need to determine how much extra money you plan to spend on food, entertainment,
clothing, and all the other stuff you will want that requires money.
Part 4 Extra Expenses Questions
a) The average person spends $50/week on food
a. Add $25 if you think you eat MORE than the average person
b. Subtract $10 if you think you eat LESS than the average person
c. My total food expense per month is:
b) Do you go to the movies? Purchase songs on iTunes? If so, you will need an
entertainment expense of about $50 dollars per month (depending on how many times you
go to the movies and how many songs you would purchase)
c) If you like to shop and plan to purchase clothes or other accessories, you will need to plan
on a $200 shopping budget per month. YOU WILL NEED TO PURHCASE CLOTHES AT
SOME POINT!
d) It’s always good to plan for extra expenses, so make sure to add $100 into your budget. If
you feel you need to over plan, increase this by $100.
Overall Questions
Make sure to fill in all of your expenses and your salary in the My Budget Spreadsheet. Once you
have finished, figure out what your PROFIT or LOSS is for the month.
a) Did you have a profit or a loss for the budget? How much?
b) If you had a profit, do you plan to spend more money?
c) If you had a loss, what expenses can you take out in order to make a profit?
d) Your expenses will always be expenses, so you need to choose your job wisely knowing
that living is very costly. What will you do in the future to make sure you are making a profit
in the end?