STEP 5: INCOME & EXPENSE STATEMENT Reality Check Project

Step 5: Income & Expense Statement For this section, you will have to make some choices about how you spend your monthly income. Some of you have already spent most of your income on your housing and transportation. Some of you have been more responsible and been more budget conscious. You all will be able to splurge a little on your monthly expenses. Take a sheet of paper out and number it from 1-10 Write the amounts calculated through this presentation next to each number

1. Housing Turn to Step 2: Housing Write the monthly rent amount Don’t forget your dollar signs & decimal points

2. Transportation Turn to Step 3: Transportation Bicycle - Write the Monthly Maintenance amount Bus - Write the Monthly Cost (no pass) or the Monthly Pass Price, whichever you’d rather pay Car - Write the Total Automobile Monthly Costs amount

3. Electric Bill Energy companies usually charge by kilowatt usage. Since this project is hypothetical, we can’t say for sure what your electric bill will be. However, we can estimate the monthly amount using your square footage or size of your apartment. Turn to Step 2: Housing Put your finger on the square footage of your home or apartment To calculate your monthly electric bill, multiply the square footage of your home by $0.09 Square Footage x $0.09 = Monthly Electric Bill

4. Water Bill Water companies charge by the amount of water used and waste water released. Again, this project is hypothetical, so we can’t say with certainty what your water bill will run each month. We will estimate the monthly amount by the number of people living in the home and the number of bathrooms. Turn to Step 2: Housing and find the number of bathrooms in your home or apartment To calculate your water bill, multiply the number of bathrooms in your home or apartment by $ Then multiply by the number of people living in your home or apartment # of Bathrooms x $11.00 x # of People = Monthly Water Bill

5. Phone Land Line/Home Phone  Basic service with no long distance  Unlimited service with long distance Cell Phone  Basic phone or Smartphone  Talk/Text:  Unlimited  500 minutes/2,000 texts  250 minutes/1,000 texts  Data (only available for Smartphones) :  Unlimited  2 GB  1 GB

6. Cable & Internet Cable  Local channels only  Basic Cable  Ultimate Cable Internet  Cable  DSL  Add Wireless Networking

7. Food Home & Dining Out  Split meals between home and sit-down restaurants Home & Fast Food  Split meals between meals and fast food restaurants Eat at Home  Only eat at home using groceries purchased Restaurants  Only eat at sit-down restaurants

8. Entertainment Home Body Bundle  Allows you to stay home and rent movies, have friends over, and play video games Movie Freak Bundle  Includes Home Body and allows you to go to the movies a few times a month Fun in the Sun Bundle  Includes above Bundles and allows you to go to water parks or theme parks Out and About Bundle  Includes above Bundles and allows you to go bowling or play laser tag Party Animal Bundle  Includes above Bundles and allows you to go to concerts or music shows each month

9. Medical Turn to Step 1: Employment Find your Job Benefits Does your job offer medical and dental insurance?  If so, write Health Insurance I.  If not, decide to take Health Insurance II, the Doctor Visit plan, and/or the Dentist Visit plan. Health Insurance I  If your job offers medical and dental insurance Health Insurance II  If your job does not offer medical and dental insurance, but you want insurance Doctor Visit Plan  Allows for one visit to the doctor each month Dentist Visit Plan  Allows for one visit to the dentist each month

10. Miscellaneous Stuff  Buy different items such as clothing, picture frames, etc. Pet Care  Have a dog or cat and be able to feed and care for them Vacation  Be able to travel up to twice per year Gadgets  Be able to buy the latest gadgets Home  Buy big items for your home such as big TVs, appliances, new furniture, etc.

HOW MUCH ARE THE CHOICES YOU MADE GOING TO COST YOU? Pricing for Expenses

Phone Pricing Land Line/Home Phone  Basic Service w/ no long distance: $15.00 per month  Unlimited Service: $19.99 per month Cell Phone  Basic phone  Unlimited: $50.00  500 min/2,000 texts: $45.00  250 min/1,000 texts: $40.00  Smartphone  Unlimited: $80.00  500 min/2,000 texts: $75.00  250 min/1,000 texts: $70.00  Add Data package for: Unlimited: $ GB: $ GB: $5.00

Cable & Internet Pricing Cable  Local channels only: $25.00  Basic Cable: $45.00  Ultimate Cable w/DVR service: $75.00 Internet  Cable: $15.00  With wireless networking: Add $10.00  DSL: $35.00  With wireless networking: Add $10.00

Food Home & Dining Out  $400 Home & Fast Food  $350 Eat at Home  $250 Restaurants  $500

Entertainment Movie Freak Bundle  $40.00 Home Body Bundle  $25.00 Fun in the Sun Bundle  $60.00 Out and About Bundle  $80.00 Party Animal Bundle  $110.00

Medical Health Insurance I  $73.00 Health Insurance II  $ Doctor Visit Plan  $91.00 Dentist Visit Plan  $84.00

Miscellaneous Stuff  $50.00 Pet Care  $75.00 Vacation  $ Gadgets  $ Home  $225.00

Total Monthly Expenses Add all expenses and write the total in the bottom-left column Should be less than your Net Monthly Income at the top of the page

Roommates If you have a roommate, these expenses may be shared:  Housing  Electric  Water  Phone (Only Land Lines)  Cable & Internet To calculate your share of the expense, divide the total expense by 2.