Wheeler Budget Project – AP Edition
For the personal finance portion of the course, you will be compiling a portfolio of common personal finance issues that you will face during your lifetime. The portfolio will consist of the following parts:
· Choosing a Career
· Schooling
· Résumé
· Disposable Income
· Meal Plan
· Housing
· Transportation
· Investing
· Budgeting
· A Life Changing Event
· Analysis
Each of these parts must be included in the above order in a three-ring binder (or approved alternative binding) separated by dividers. The appearance of this project will factor into your grade (must have a professional appearance, not cute).
All prices must be proven. Take pictures of listed prices, print advertised prices off the internet, or cut prices out of catalogues. Every number must be backed up.
This portfolio will account for 15% of your grade and is due on Monday, 30 December. It may, however, be turned in without penalty until 8:20am on Friday, 2 December. After this time, an additional 25% will be deducted at the beginning of each school day. After 8:20am on Wednesday, 7 December, the project will no longer be accepted for any credit whatsoever.
The following outline exists to help guide you in researching each part of your portfolio.
I. Career – Include the following:
● An entry-level position in a field of your choice
● Required skills and how you know you have them or will acquire them
● What fascinates you about the career and how you discovered it
● The working environment of that career (day-to-day location, pressures, responsibilities, coworkers, indoor/outdoor)
● How you perceive your future within the career and how you plan to obtain this future
● How you intend to attain your career goal possibly including:
Education
Experience
Internship
II. Schooling – Include:
● The type of schooling you will obtain before you work
● The number of semesters or quarters you will attend
● Where you plan to attend school
● Costs of schooling per quarter, semester, or year
● Costs of living, food, entertainment, books, and materials (calculate by month, semester, or year)
● Scholarships (must be proven) or other forms of college financing (you may not include money put aside for college – this is private information and your recognition of the impact of this money will make you more appreciative of those who have provided it).
● Your student loans (Use Ford Federal Loans)
Include:
1. Amount of loans
2. Interest rate
3. Monthly payment
4. Years until paid off
5. Total amount that will be paid in principal and interest
III. Résumé
Write a résumé as though you are applying for your first career job. This should not be the same as your senior project or internship résumé. Instead, it should include your future education and be focused on the job that you will be working. Use a template, leave plenty of white space, and make it clear that you are qualified for this job (with both education and experience). Remember that employers are looking for skilled workers.
IV. Disposable Income
Look up the starting pay for your career at salary.com. Use the 10% number to represent your income with no previous work experience.
Calculate your (be sure to show your work):
Federal income taxes
FICA tax
Social Security tax
State income taxes
Fill out a 1040EZ with your tax information (please do not fill out the SSN section)
V. Meal Plan
Create a weekly menu (minimum of 1800 calories per day and a balanced diet) including all the meals you eat in a day and snacks. Include main dishes, side items, desserts, and drinks.
Create a weekly shopping list (don’t forget the spices, cooking oil, and basic necessities) with costs for each item.
Create a list of one-time costs including pots, pans, dishes, glasses, etc. It is allowable to buy these second-hand – just be sure to wash them well in the event someone previously used them to cook methamphetamines.
Take pictures at the grocery store to justify the prices you list.
VI. Housing
You may find an apartment or house to rent. Describe it and why you chose it along with its amenities, location, the monthly rent, and any requirements of you for being in this apartment (carpet cleaning, getting rid of your dog, taking care of the yard, repairing the premises). Alternately, you may go through the extra work of researching and explaining how you will purchase a home. In either case, be sure to purchase insurance to cover your property. Be sure to list your insurance coverages, deductibles, and premium.
If you would prefer to purchase a home, simply adjust the above requirements to fit your mortgage, PMI, and hazard insurance. Remember to include the cost of repairs to your home if you intend on purchasing.
VII. Transportation
Find a car, motorcycle, bicycle, scooter, Vespa (if you’re a hipster), dune buggy, helicopter, horse, or public transit system that will efficiently move you to and from work. If you choose to use an alternative to a car, provide your plan for making it to work if the weather is bad. Also be sure you have a way of returning home with groceries.
Provide the following:
● Description of vehicle (make, model, year, condition, features)
● Why you chose this vehicle
● Price paid
● Loan
Interest rate
Length of loan
Total amount to be paid (principal + interest)
● Insurance
Company
Deductible
Coverage levels
Premium
VIII. Investing
You must save money for your retirement. This is a plan, so research what you need to do through the majority of your career. Don’t worry if you can’t meet the savings quite yet with your entry-level job.
Include in your plan:
● How much you need to retire with
● Future spending needs (kids, future education, house purchase, etc.)
● Amount you need to invest monthly to reach your goals (remember to use a reasonable rate of return for your investments)
● How much you are able to invest now
● Your investment portfolio (you must diversify and justify each of your investments)
IX. Budgeting
Compile all income and costs on one spreadsheet, calculated both monthly and yearly.
Include:
● Utilities (Electricity, Gas, Water, Sewage, Telephone) – prove these by attaching bills from similar-sized homes (black out the customer information) or using bill estimating websites
● Entertainment/Productivity (Television, Telephone, Internet, Battle.net, X-box live, Netflix, Magazines, books, movies, clubs, gym memberships)
● Clothing (for work, leisure, and going out) – prove by printing off shopping sites or by taking pictures in stores
● Gasoline – show your calculations
● Car Repair/Maintenance – you may use a cost estimator here
● Kitchen equipment (Pots and pans, spatula, tongs, plates, silverware, can opener)
● Tools (how do you intend on hanging pictures or assembling your Ikea table?)
● Household items (Toilet paper, Paper towels, soap, 409, Windex)
● Personal care items (Shower! Brush your teeth! Wear deodorant! Shave!)
● Health Insurance including your coverages and premium
● Savings
● Money for investing
X. A Life-Changing Event
A life-changing event will be handed out in class.
● You will research the financial impact of this event and your resolution of it.
● You must then include a new budget reflecting the costs and/or benefits of this life-changing event.
XI. A final analysis of your first few months in your career
● Include your thoughts on this life and the decisions you’ve made in it
● Reflect on what you’ve learned or already knew
● Discuss any changes you will make in your real life based on your experience in this fake life.