Download - Reality Check Project
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 $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
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 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
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 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
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.
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: $15.00 2 GB: $10.00 1 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 $300.00
Doctor Visit Plan $91.00
Dentist Visit Plan $84.00
Miscellaneous
Stuff $50.00
Pet Care $75.00
Vacation $125.00
Gadgets $175.00
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.