Economics Project

By Emma Weidig, Sam Myers and Ned Bishop

Our Life/Quick Summary: Two income family (both teachers) earning

$70,000 each for a GROSS INCOME of $140,000

Son in college (University of Rhode Island) Own two cars: 2008 Volkswagen Jetta and a

2000 Volvo Station Wagen Live in a house in Rhode Island valued at

about $350,000 NET INCOME of $99, 222 Left over money after all expenses and

necessities: $8, 798

Food Groceries: $7,382 (yearly costs purchased at

Stop and Shop) Eating out and take out: $2,210 per year Coffee and other snacks: $780 per yearTotal: $10,372

Food Chart

71%

21%

8%Groceries

Dining Out/Take Out

Coffee

Clothing Kohls. Son’s Clothing: $390 Husband’s Clothing: $500 Wife’s Clothing: $700 Total: $1,590

25%

31%

44%Son's Clothing

Husband's Clothing

Wife's Clothing

Taxes Deductions: 401K= $7,200Married Couple = $11,600 Federal Taxes: $27,478 State Taxes: $7,420 Social Security: $5,880 Total: $40,778

Gross Income: $140,000Net Income: $99,222

67%

18%

14%

Federal StateSocial Security

Housing Live in Middletown, RI $350,000 house. Payed $60,000 down

payment. $1246 mortgage every month. Utilities (heat, water, electricity, internet,

cable, phone): $7140 Occasional maintance: $500 We don’t have landscaping. Total: $29,260

Transportation 2008 Volkswagen Jetta and 2000 Volvo

Station Wagon Car payments only on Volkswagen Jetta Both drive to work. Fuel: $2,600 per year Insurance: $1,600 with All State Total: $6512

Healthcare Work covers 80%. We only have to pay 20%:

$3,800 a year. Plan by Blue Cross Blue Shield. No vision problems. Dental=covered by insurance. Deductibles:

$50 Over the counter drugs (purchased at CVS):

$40 Co-pays for doctors visits. $10 copay. 2 visits

per family member: $60 Total: $3,960

Healthcare Chart

96%

2%1%

1%

Insurance

Co-Pays

OTC Drugs

Dental

Leisure Yearly vacation with the Bahamas with the

son: $3,000 Hobbies/Activities: $1280book club for wife, gym membership for both, movie nights etc. Total: $4,280

Savings/Investments 401K Retirement Plan: $7,200 per year General Savings: $5,000 for misc. or

emergencies College Fund. University of Rhode Island:

$20,000 Total: $32,000

Personal Expenses Health and beauty supplies bought at CVS:

$40 a month Life Insurance: $560 We send our son $100 a month for help with

college supplies and food.Total: $2,250

The Big Picture

8%1%

31%

22%5%3%

3%

25%2%

FoodClothingTaxesHousingTransportationHealthcareLeisureSavings/InvestmentsPersonal/Family

Follow Up Left over income: $8,789 25% of our income was put into savings (however

that includes college payments for our son) ^^^^ We were very cheap for a lot of things.

Example: no landscaping and only $50 spent on gifts all year.

Average income in the United States as of 2010: $49,445

We are well above average. Poverty threshold for one person: $11,139 Poverty threshold for three person home=our

scenario: $17,374