Accounting and Finance Foundations

Unit 12

Accounting and Finance Foundations Unit 12: Budgeting and Business Plans 961

Skill Standards

Academic:

AD 1 Perform basic and higher level math operations (e.g., addition, subtraction, multiplication,

division, decimals, fractions, units of conversion, averaging, percentage, proportion, ratios)

AE 2 Identify the components of a budget and how one is created

Employability:

ED 3 Work within budgetary constraints

Scenario

Picture yourself five years after high school. You have already graduated from college or trade school and

started your career. Your net earnings per year are $42,750 (after taxes and healthcare costs are deducted),

and you don’t receive any financial assistance from your parents. Next year, you want to go on a vacation

to Cancún that will cost $4,599. To save up enough money to pay for the trip, you have decided to put

together a monthly budget.

Tasks

A. Create a monthly budget for yourself either in a spreadsheet program or on the budgeting sheet

provided. Remember that you bring home $42,750 a year, and include the following monthly

income and expenses in your budget:^

    • Mortgage payment—$950

    • Car payment—$225

    • Car insurance—$89

    • Student loan—$131

    • Savings (Pay yourself first!)—$25.00

    • Phone—$185

    • Gas—$65

    • Electric—$112

    • Groceries—$225

Open-Response Unit Assessment S/T Guide

•    Eating out—$550

    • Cable TV— $85

    • Movie rental membership—$22

    • Month-to-month gym pass—$47

    • Entertainment—$225

    • Personal expenses—$112

    • Bank credit cards—$50

    • Dividends/Interest received—$15