Reality Check Project

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STEP 5: INCOME & EXPENSE STATEMENT Reality Check Project

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Reality Check Project. Step 5: Income & Expense Statement. 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. - PowerPoint PPT Presentation

Transcript of Reality Check Project

Page 1: Reality Check Project

STEP 5 : INCOME & EXPENSE STATEMENT

Reality Check Project

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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

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1. Housing

Turn to Step 2: Housing

Write the monthly rent amount

Don’t forget your dollar signs & decimal points

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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

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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

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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 $11.00. Then multiply by the number of people living in your home or apartment

# of Bathrooms x $11.00 x # of People = Monthly Water Bill

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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

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6. Cable & Internet

Cable Local channels only Basic Cable Ultimate Cable

Internet Cable DSL Add Wireless

Networking

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7. Food

Home & Dining Out Split meals between home

and sit-down restaurantsHome & Fast Food

Split meals between meals and fast food restaurants

Eat at Home Only eat at home using

groceries purchasedRestaurants

Only eat at sit-down restaurants

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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

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9. Medical

Turn to Step 1: Employment

Find your Job BenefitsDoes 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 insuranceHealth 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 monthDentist Visit Plan

Allows for one visit to the dentist each month

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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 yearGadgets

Be able to buy the latest gadgets

Home Buy big items for your home

such as big TVs, appliances, new furniture, etc.

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HOW MUCH ARE THE CHOICES YOU MADE GOING TO COST YOU?

Pricing for Expenses

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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: $15.00 2 GB: $10.00 1 GB: $5.00

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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

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Food

Home & Dining Out $400

Home & Fast Food $350

Eat at Home $250

Restaurants $500

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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

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Medical

Health Insurance I $73.00

Health Insurance II $300.00

Doctor Visit Plan $91.00

Dentist Visit Plan $84.00

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Miscellaneous

Stuff $50.00

Pet Care $75.00

Vacation $125.00

Gadgets $175.00

Home $225.00

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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

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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.