HOUSEHOLD BUDGET PROJECT
The Household Budget Project has been designed to give you an example of what it will be like
when you either graduate from high school or from a higher educational experience.
1. Students who decide to turn in the project without either a job description section or a
completed budget will not receive any credit for this project.
2. All projects must be turned in by 3pm on the due date – being absent is not an excuse
for turning in the project late.
3. Make sure you use a calculator for all mathematical problems. Double check your work
as errors can prove costly.
4. Two people (both must be in my current classes) may live together and, in turn, share the
cost of certain expenses equally. However, each person must turn in an individual
5. You will be graded on accuracy of math, thoroughness of budget preparation, neatness,
spelling and your reaction paper. This project must be typed!
6. The completed project must be in a 1-11/2 inch three-ring binder with tabs dividing each
7. This project is worth 10% of your semester grade -- TAKE YOUR TIME!
HOUSEHOLD BUDGET PROJECT
You are responsible to do a budget showing your gross annual income, fixed costs and variable
costs. It is very important to be realistic when figuring out your budget. Remember this will
probably be the first time out on your own so the cost will seem somewhat high.
Yearly gross income = $_________________
Deductions from paycheck:
Federal Tax Withholding 12.2%
Social Security 6.20%
State Tax Withholding 3.00% (Illinois)
Profit Participation (401K) 6.00%
Health Insurance $52.00 per month
Other expenses include:
College loan payment $220.00 per month
Auto insurance ______ per month
Life insurance $25.00 per month
This will include all wages, interest earnings from savings and dividends from your
This will include bills that will be the same every month. Usually include: housing (rent
or mortgage), car payments, car insurance and loan payments.
This will include bills that may change on monthly basis. Usually includes: transportation
cost (gas, oil, wash…), food, personal care, phone bill, gifts, clothing, drugs,
entertainment, vacations and recreation.
You are about to embark on the great unknown, life after high school. The following components
are geared to help you prepare for the “unknown.”
You are 24 years old when creating this budget!!
Components of your project:
1. Job Description: To begin this project you must first find a career or job that will allow
you the opportunity to earn enough money to live “self-sufficiently.” You will need to
find a career/job through the use of many outside resources (some listed below) to
document needed job skills, training and the all important salary. The teacher has the
final approval of what level of experience will be accepted and your salary.
Possible Career Sites to use
2. Budget Layout: This is a very important step. This should be a layout that includes your
gross income – fixed expenses – variable expenses. This will let you know how much
money you have at the end of the project.
3. Rent / buy an apartment, house, or condo. Look at listings in newspapers, apartment
guides, internet, etc. and choose one that you may consider living in and also is
affordable to your needs. If your utilities are not included (gas, electric, and water) allow
20% of rent to cover these items. If you share an apartment, both of you must pay 10%
Documentation is needed!!! Make sure you have proof of rent by printing it off the
internet and/or clipping an ad out of the newspaper and include it in your project.
4. Furnish your apartment. Moving in to a new apartment will require you to purchase
furniture and other accessories. You will need to purchase five different items (more than
$25 in cost each – maximum total price of $1000) to bring to your new residence. Show
documentation of items you will purchase. If you share an apartment, both of you must
include a minimum of 3 items.
5. Keep a checkbook and checkbook register: Record all deposits and check activity starting
with your monthly take home pay as an opening balance. Write at least (5) checks in
payment of rent, loan payment, food, etc….
6. Car Payment: You must look into buying a new or used reliable automobile. You will
need a loan to cover the cost of the automobile.
Finance calculator you must use:
Go to www.yahoo.com
Click on “autos”
Click on “finance”
Click on “finance calculator”
***You must show documentation of your finance calculator results***
Unless you can find a better deal, you can trade in your car for $500.00. (Better deal = look in
Kelley’s Blue Book or computer to figure out how much your current vehicle is worth – you must show proof).
If you own a car that YOU make the entire payment on each month, you may use this
as your car. You must include a copy of your payment schedule in your project.
7. Complete a credit card application.
8. Complete a loan application.
9. You must find a quote on car insurance; documentation is required.
Insurance companies to consider using:
10. Situation cards: You will be choosing a card that will have actual situations you will need
to deal with and incorporate into your budget. The situation will require research,
documentation and a summary.
11. Complete a federal 1040EZ Tax Form.
12. Complete a State of Illinois Tax Form.
13. Complete three separate pie graphs:
Total expenses (Combination of Fixed and Variable)
14. In a minimum of a one-page summary, evaluate your experience in this project. (Be
honest) Was this project realistic? Was it difficult to plan your budget? Did you have
any money left at the end of the project or were you short money? If you were short on
money, what might be some options for you so you can balance your budget? Was it
easy or hard working with a partner, if you had one? Explain your observations. Do
you have suggestions to improve or change this project? Any parents comments?
Remember, points will be deducted for neatness and will not be accepted if not typed!
Mr. Allen – revised: November 14, 2010