Senior Economics/Budget Project

Objective
The Senior Economics/Budget Project is designed to assist you, the student, in considering your financial
future. The project consists of various “real world” situations/decisions you will be faced with once entering
the workforce. You will create a budget that demonstrates what you feel is the best use of your income.
Many of the activities require you to research information and some may even require you to go into various
institutions to obtain applications. You are required to show tangible evidence of your research! This
may include online sources, newspaper clippings, bill receipts, apartment applications, utility estimates, etc.

WARNING: Do not use your social security number on any forms/applications.

Basic Format:
 Everything should be typed 12pt font, Times New Roman, and double spaced.
 There should be a Title Page that lists your name, class, class period, and date submitted.
 Each activity in the project is to be completed on a separate sheet of paper and then put into a
booklet to be turned into the teacher for evaluation.
 Each activity page should be numbered and correspond to the table of contents page (Table of
Contents Required).

Activities

1. JOB- You, the student, have been randomly assigned an occupation and life scenario. It is your job to
research how much education is expected for you to have in order to fulfill your career duties. Some of you
will only need a high school diploma, a high school diploma with two years of trade school/community
college, or a four-year college degree. Based on your assigned salary you are expected to calculate the
amount of federal taxes, state taxes and FICA taxes to be subtracted from the gross pay to arrive at the net
pay (see the “Computation Chart). You will also be expected to investigate to find out if your job provides
health insurance and/or life insurance as a benefit or if you will have to pay for these from you own pay
check. Lastly, you are expected to find at least one labor union that supports your occupation. Describe the
benefits of this labor union and the membership fee. IF your job does not have a labor union then you have
to explain why there is not one and cons of not having a union. This is the most in-depth portion of the
project and will, most likely, take more than one page to complete thoroughly.

Requirements:
 Describe your career, what responsibilities does this job entail? What are the assigned hours?
 Level of education needed.
 Amount of taxes expected to be paid
 Job benefits
 Labor union
 Note resources used to obtain information about this specific career.
 Complete a sample copy of a W4 form (www.irs.gov).

Resources:
*Here are some excellent resources that you may use to research your chosen profession*

US Dept of Labor—BLS—Occupational Outlook Handbook: https://www.bls.gov/ooh/

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US Dept. of Labor--BLS’s Career Guide to Industries:
https://www.bls.gov/k12/content/students/careers/career-exploration.htm

Collegboard.com Majors & Career Central:

http://www.collegeboard.com/student/csearch/majors_careers/index.html

Careers.Org Salary Tool: http://www.careers.org/salaries/step1

2. BANK- You, the student, will choose a bank to deposit your salary/wages. You will tell us why you have
chosen this particular bank, and will indicate which services you will use at the bank. Also, if your career
requires you to have a college degree, you will most likely, have to pay back student loans. You should speak
with your parent/guardian and estimate what they think they will be asked to pay for these loans. If this
number cannot be determined, then you should determine the national average for student loans and set up a
payment plan in your budget.

Requirements:
 Include information on a checking account, online banking services, a savings account, an ATM card,
and credit cards.
 List fees for services, interest rates, overdraft protection, and limits on accounts.
 Complete a sample application from a bank. Any pamphlets/advertisement containing information on
the financial application will be accepted! (completed by student)
 Estimate student loan amount or national average and set up a payment plan in budget.

3. HOUSING- You will find adequate housing by renting an apartment or house. If you do not have any
children you may share an apartment with another person. If you have children you cannot share living
space with another person. You cannot live rent free with family or friends.

Requirements:
 List what services/benefits are included in the rent, the location of the apartment, and other
information necessary for housing (size, number of rooms).
 Sample apartment ad or application to apartment.
 If sharing an apartment with another senior in the class, you must give their name. ONLY IF BOTH
DO NOT HAVE CHILDREN.

4. TRANSPORTATION- You will investigate the purchase of a vehicle. You should look into buying or
leasing a vehicle. The monthly car payment will be included after it is set by the car dealership or the bank
that is financing the loan for the car. Factors to be considered in buying a vehicle would be the current
interest rates on car loans, the cost of a certain vehicle, the reliability of a used vs. new vehicle, taxes on the
vehicle purchased, and the impact of the monthly payment on your budget. Additionally, you should
determine the property tax associated with your vehicle and include that in your budget.

*NOTE: For the purposes of this project, everyone must purchase a vehicle.

Requirements
 Completed sample loan application from a car dealership/financial institution.
 Information on current interest rates for car loans.
 Property tax rates included in budget.

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Resources
Go to a search engine like Google, ask.com, altavista.com, etc and type in “Interest Rate Calculator.” There
you will find a number of sites that assist in calculating interest rates for your loans.

5. INSURANCE- You will need to secure insurance on the vehicle you have purchased and
apartment/house. Explain why you chose to go with the insurance company you did. ALSO, you will need
to secure renters’ insurance for properties in your apartment or house in case something happens. You
MUST have BOTH car and renter’s insurance.

Requirements:
 Name of the insurance company, coverage listed on the vehicle, and the monthly cost of the policy.
 Obtain the same information above for renter’s insurance.

6. CHILD CARE- If you have been assigned children in your scenario you must either find safe and suitable
childcare or enroll your child(ren) in school. Your child(ren) CANNOT stay with family or friends during the
day. You MUST find a real child care center and calculate the weekly and monthly cost of the care, benefits,
and location. If your child is of school age (5+), you must find your neighborhood school and provide
information on the school (address, school size, principal, school performance).

Requirements:
 List the name of the child care center or neighborhood school, weekly and monthly cost, cost of
uniforms, childcare benefits, operation times, and school performance review.

Resources:
School District of Philadelphia School dashboard:

https://dashboards.philasd.org/extensions/philadelphia/index.html#/

7. CELL PHONE/TELEPHONE- You will need a cell phone or telephone in the apartment. Every person
should make themselves available to be contacted for personal and professional reasons or in case of
emergency. The quickest and easiest way to make one available to be contacted is through cell
phones/telephones.

Requirements:
 List the company, the monthly costs and particulars including minutes included and other necessary
information.

8. UTILITIES- List utilities that you will be responsible for that are not included in the housing
arrangement. These may include, but are not limited to, cable, wifi, electricity, trash, water, and others.

9. FOOD and CLOTHING- You are expected to spend at least $160/month on food if single or
$225/month if you have a child. Consider where your grocery shopping will be done and why. What
strategies will you use to make your dollar go further? Also, you will describe the type of clothing that will
be required for your assigned profession. You should also estimate a monthly clothing cost.

Requirements
 Research at least three resources that give tips on saving money on day-to-day expenses and discuss the
tips.

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 Create a food shopping list for one month. You must list the quantity of the item and price. Please include
the name of the grocery store.

10. ENTERTAINMENT/MISCELLANEOUS- You should determine what you will do for entertainment
and other related expenses and how much it may cost you per month. Explain why the activities/hobbies are
important and why you chose to spend money on them as opposed to other activities. Are they wise
financially? Are you saving for big purchases? Are the family oriented if you have children? Again, what
strategies will you use to make your dollar go further?

11. GASOLINE CONSUMPTION- Gasoline consumption is a required expense for most individuals so
related expenses must be considered. In addition to considering how much gas will be used, you should
determine which gas station will be used and why. In addition to gas consumption, you will include
estimated maintenance costs associated with their particular vehicle. Remember to consider factors such as
age, type, or model of the car when determining the monthly amount to set aside.

Requirements
 List approximately how many miles will be driven per week. When considering how far to drive to work,
refer to the location of the company desired and the location of living arrangements, which have already
been determined in Activities 1 and 4. If you have children please factor in the location of the school or
child center. Also, consider visits to the grocery store, visits to friends/relatives, entertainment, etc.
 List how many miles per gallon your car averages.
 List estimated maintenance costs and a brief explanation

12. SAVINGS- You should consider how much money you will set aside per month for savings. Unexpected
expenses could come in the form of car repairs, medical care, or sudden travel. In order to prepare for these
future costs (which are a certainty) one should put aside money in a savings account that can be easily
accessed. A good amount to have put aside is $1000; and once that amount is achieved, increase savings to
expenses needed for one-month and then three-months. Plan accordingly for these unexpected expenses so
that borrowing or charging credit cards to cover costs will not be a necessity.
Requirements
 Identify the current interest rate on personal savings accounts at your bank or whether your employer
has a company pension plan or contributes to an Individual Retirement Account, IRA, for you.
 Students must allow for both types of savings accounts in their budgets and discuss their financial
goals related to these categories. (see requirements below)

13. BUDGET SHEET

You are expected to develop a personal budget that integrates all of the above activities. You have learned
how to set up personal budgeting in March. So you may use those skills learned and you may use some
Additional Resources provided below. The budget should be placed at the back of the booklet, and IT MUST
BALANCE; meaning you cannot go over your budget or under! Every dollar/cent must be accounted for.

14. FINANCIAL GOALS

You may think of at least 3 financial goals you would like to achieve in the future and set up a time-frame
for achieving them. Goals will vary by individual, but could be related to education, purchasing a house, car,
or some other large expense, or possibly an amount to have once retired. At least ONE goal MUST be to
get savings to $1000 as quickly as possible. You must decide how long it will take to save this amount and at
what monthly savings rate will this goal be achieved. *

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Additional Resources
*Listed below there are a few websites that may provide some general financial help in setting up a budget
and tips for saving money, etc.*

Personal Budgeting Tips

http://www.personalbudgeting.com/tips/tips.html
Mint Budget App
https://www.mint.com/
Every Dollar App
https://www.everydollar.com/

***ATTENDANCE POLICY***
This is a HUGE project that will take time IN and OUTSIDE of class to complete correctly. For the month
of April majority of class time will be dedicated to this project to ensure that you are all on task and
ultimately successful. Therefore, each class day we will work to complete individual sections of the
portfolio. If you are in class, you have the opportunity to receive FULL CREDIT (granted the assignment is
done correctly) on each section of the project. If you are not in class you have the opportunity to receive 70%
credit (granted the assignment is done correctly) if the assignment is turned in at the next class date or at the
date discussed with myself or Mr. Isaacs in private.

*ST CHRIS STUDENTS ARE EXCUSED FROM THIS POLICY.

This project is worth THREE TEST GRADES.

The rough draft = 150pts
The Final draft = 150pts

Computation Chart
 FICA tax is 6.2% of monthly earnings and Medicare tax is 1.4% of monthly earnings.
 Federal Taxes- claiming one- over $30,000 annual=11%, under $29,999=9%, and under
$20,000=5% for this project.
 Federal Taxes-claiming zero-over $30,000 annual=13%, under $29,999=10%, and under
$20,000=6% for this project
 State Taxes-over $30,000 annual=4%, under $29,999=3%, under $20,000=2%

Monthly Budget Report Sheet

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1. Computing Monthly Net Income

Gross Income......................................................................... $_____________

FICA Amount................................................................... $_____________
Medicare Tax.................................................................... $_____________
Federal Tax....................................................................... $_____________
State Tax........................................................................... $_____________
Net Income............................................................................ $_____________

2. Monthly Expenditures

Rent…………………………………………………....... $______________
Vehicle Cost Per Month……………………………....... $______________
Monthly Vehicle Insurance Payment…………………... $______________
Monthly Renters Insurance Cost...................................... $______________
Monthly Payment on Student Loan(s) ………………… $______________
Monthly Phone/Cell Phone Cost...................................... $______________
Utilities Monthly Cost (total from below)........................ $______________
Cable.................................................$____________
Electric/Gas......................................$____________
Water................................................$____________
Trash.................................................$____________
Other……………………………….$____________
Monthly food/clothing costs............................................. $______________
(minimum $160 for food + clothing)
Entertainment Costs......................................................... $______________
Monthly Gasoline/Maintenance Costs............................. $______________
Savings Deposits.............................................................. $______________
Contributions/Monthly Donations................................... $______________

Total Monthly Expenditures............................................ $______________

Monthly Net (bring home) Income................................... $______________

Monthly Surplus or Deficit......................................+ or - $______________

Grading Rubric for

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 Senior Economics/Budget Project

Basic Format Requirements

______Typed
______Title Page that lists the student’s name, name of school, class, class period, school year, and date
completed.
______Each activity in the project is to be completed on a separate sheet of paper and then put into a
booklet to be turned in to the teacher for evaluation.
______Table of Contents

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Activity Requirements Comments
1. JOB  Describe your career, what
responsibilities does this job
_____/10 entail? What are the assigned
hours?
 Level of education needed.
 Amount of taxes expected to be
paid
 Job benefits
 Labor union
 Note resources used to obtain
information about this specific
career
 Complete a sample copy of a W4
form (www.irs.gov)

2. BANK  Include information on a checking

account, online banking services,
a savings account, an ATM card,
_____/10 and credit cards
 List fees for services, interest
rates, overdraft protection, and
limits on accounts
 Complete a sample application
from a bank. Any
pamphlets/advertisements
containing information on the
financial application will be
accepted! (completed by the
student)
 Estimate student loan amount or
national average and set up a
payment plan in the budget
3. HOUSING  List what services/benefits are
included in the rent, the location
_____/10 of the apartment, and other
information necessary for housing
 Sample apartment ad or
application.
 If sharing an apartment with
another senior, you must give
their name.
4. TRANSPORTATION  Completed sample loan
application from a car
_____/10 dealership/financial institution
 Information on current interest
rates for car loans
 Property tax rates included in the
budget
5. INSURANCE  Name of the insurance company,
coverage listed on the vehicle,
_____/10 and the monthly cost of the
policy. 8
 Obtain the same information
above for renter’s insurance
 Points Description
Activity Requirements (There are twelve activities listed above and each has
_____/140 its own unique requirements. Activities will be worth 10 points each. Students
will receive full credit if each requirement is met according to the teacher’s
expectations)

_____/10 Portfolio
Points Total
_____/150

TSA Worker:
You are a security agent for the Transportation Security Agency (TSA) at the Philadelphia International
Airport with an annual salary of 37,355.00 and a credit score of 689. You have a two-year-old child.

Flight Attendant:
You are a flight attendant with Delta Airlines with an entry level salary of 21,875.00. Your credit score is 600
and you have no children.

Construction worker:
You are a construction worker with a credit score of 700 and an annual salary of $30,890.00. You have two
children ages five and seven

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Electrician:
You are an electrician lineman for Verizon Communications. Your credit score is 549 and an entry salary of
$30,031.00

Certified Nursing Assistant:

You are a CNA with an annual salary of $26,590.00. Your credit score is 698 and you have one seven-year-
old child.

Registered Nurse:
You are a registered nurse with an entry level salary of $45,479.00. Your credit score is 720 and you have no
children.

Physical Therapist:
You are a physical therapist with an entry level salary of $66,685.00. Your credit score is 670 and you two
children ages two and 10 months.

Dental Hygienist:
You are a dental hygienist with an entry level salary of $43,244.00. Your credit score is 523 and you have no
children.

Septa Bus Driver:

You are a septa bus driver with an annual salary $53,871.00. Your credit score is 760 and you have no
children.

Police Officer:
You are a rookie police officer with an entry level salary of $45,000.00. Your credit score is 525 and you
have no children.

Fire Fighter:
You are a fire fighter with an entry level salary of $27,589.00. Your credit score is 770 and you have no
children.

Veterinarian:
You are veterinarian with an annual salary of $88,490.00. Your credit score is 610 and you have three
children ages four, six, and eight.

School Counselor:
You are a school counselor with an entry level salary of $47,340.00. Your credit score is 715 and you have no
children.

Carpenter:
You are a carpenter with an annual salary with $45,015.00. Your credit score is 705 and you have no
children.

Secretary:
You are a secretary with an annual salary of $36,500.00. Your credit score is 680 and you have no children.

Social Worker:
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You are a social worker with an annual salary of 47,980 with a credit score of 730. You have no children.

Food services Manager:

You are a food services manager with an annual salary of $48,690.00. Your credit score is 700 and you have
no children.

Public School Teacher:

You are a Philadelphia public school teacher with an entry level salary of $45,360.00 with a credit score of
685 and no children.

Waste Management Collector:

You are a waste management collector with an annual salary of $35,988.00. Your credit score is 715 and you
have no children.

Hair Stylist:
You are a hairstylist with an annual income of $26,321.00. Your credit score is 615 and you have one eight-
year-old child.

Barber:
You are a barber with an annual income of $23,710.00. Your credit score is 660 and you have a one-year old
child.

Security Guard:
You are a security officer with an annual salary of $24,680.00. Your credit score is 590 and you have no
children.

IT Analyst:
You are an IT analyst with an annual salary of $62,450.00. Your credit score is 740 and you have one six-
year-old child.

Plumber:
You are a plumber and your annual salary is $50,200.00. Your credit score is 800 and you have no children.

Bank Teller:
You are a bank teller with an annual salary of $26,410.00. Your credit score is 730 and you have no children.

Chef:
You are chef and your annual salary is $41,500.00. Your credit score is 600 and you have no children.

Courtroom Clerk:
You are a courtroom clerk with an annual salary of 35,580.00. Your credit score is 730 and you have no
children.

Cashier:
You are a cashier and your annual salary is $19,310.00. Your credit score is 639 and you have no children.

Mailman/woman:
You are a mailman/woman with an annual salary of 46,990. Your credit score is 510 and you have no
children.

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