1. More Budget Practice
Financial Literacy

2. What do you spend money on?
What are your sources of income (if any)? About how much income do you receive monthly?
If you have a mobile banking app, log on and record your spending habits over the last two weeks
If you don’t, try to think of everything you’ve spent money on in the last two weeks.
Classify each purchase as a need or a want.

3. Budget Classwork Assignment
On a separate sheet of paper, calculate the net income using the info on the next slide
Then, you will complete the budget by determining estimated expenses. List all expenses, being as specific as possible.
Choose a city to live in and research the cost of living
You should be left with a balance of zero – spending or saving all money without going over!

4. Taxes Your federal income tax rate depends on your tax bracket
You will pay a higher rate the more money you make
Social Security (or FICA) tax – 6.2%
Medicare – 1.45%

5. Income Calculate the following:
After college or trade school, you accept a job offer with an annual salary of $40,000.
Gross monthly income: $_________
Monthly deductions:
Monthly federal income tax (16.7%): $__________
Monthly social security tax (6.2%): $_________
Monthly Medicare tax (1.45%): $__________
Contribution to employer health & dental insurance: $30
Net monthly income: $________

6. Expenses: Classify as variable or fixed AND as mandatory (needs) or discretionary (wants)
Rent or mortgage payment
Renter’s or homeowner’s insurance
Transportation
Car payment
Car insurance
Gas
Maintenance
Utilities
Cell phone bill
Internet bill
Student loan payment
Food
Groceries
Eating out
Entertainment
Miscellaneous expenses
Clothing
Household products
Donations/giving
Savings
Set amount each month
Retirement
Additional amount for specific item/goal