My adult budget
PLANNING FOR MY FUTURE
Learning Goal:
We are learning to use our knowledge of percentages, decimals, and money to plan a personal budget for my future.
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SUCCESS CRITERIA
KNOWLEDGE ✔ I can demonstrate a deep understanding of place value. ✔ I can demonstrate a deep understanding of percentages. ✔ I can demonstrate a deep understanding of financial and decimal numbers. | THINKING & INQUIRY ✔ I can search for necessary information. ✔ I can make logical and wise financial decisions according to my circumstances. |
COMMUNICATION ✔ I can effectively communicate data in tables and images. ✔ I can clearly explain and justify my choices. | APPLICATION ✔ I can create a complete, logical and realistic budget. ✔ I can make connections between my budget and the real world. |
MY PERSONAL PROFILE
Spin the wheel and make your choices. Write down the choice you made in Row 1.
If you want to make further life adjustments (i.e. marriage, roommates, a second job), discuss with the teacher, then enter that choice in Row 2.
MY EARNINGS | MY ASSETS (X 2) | MY DEBT (X 2) | OTHER INFORMATION |
| | | |
MY JOB: MY INCOME: MY BENEFITS: | #1 - | #1 - | # of CHILDREN: |
#2 - | #2 - |
Career Options (All salaries are gros)
Cashier @McDonalds $14 / hr, 40 hrs/ week No retirement plan No Medical insurance. | Telemarketer $18 / hr, 50 hrs/ week No retirement plan Medical insurance. | Physiotherapy intern $14 / hr, 50 hrs/ week No retirement plan Medical insurance. | Masseuse RMT $75 / hr, 25 hrs/ week Independent worker. No retirement plan No Medical insurance. ***Must find work space or own a car. | Gym Trainer $20/ hr, 40 hrs/ week No retirement plan No Medical insurance. | Medical Intern. $65,000 / year. 70 hrs/ week No retirement plan Medical insurance. |
Administrative assistant $43,000 / year. 40 hrs/ week No retirement plan Medical insurance. | Elementary teacher. $45,000 / year. 60 hrs/ week Good retirement benefits Medical insurance. | High School teacher. $48,000 / year. 60 hrs/ week Good retirement benefits Medical insurance. | Nanny $15 / hr, 40 hrs/ week No retirement plan Medical insurance. | Babysitter @ daycare $38,000 / year. 40 hrs/ week Some retirement benefits. Medical insurance. | Custodian $55,000 / year. 40 hrs/ week Some retirement benefits Medical insurance. |
Electrical Apprentice. $42,000 / year. 50 hrs/ week No retirement plan Medical insurance. | Waiter at a fancy restaurant. $15 / hr, 40 hrs/ week + $1,000 / week in tips. No retirement plan No Medical insurance. | Waiter at an average restaurant $15 / hr, 40 hrs/ week + $500 / week in tips No retirement plan No Medical insurance. | Store Cashier $14 / hr, 50 hrs/ week No retirement plan No Medical insurance. | Supermarket cashier $14 / hr, 50 hrs/ week No retirement plan No Medical insurance. | Construction worker. $22 / hr, 50 hrs/ week No retirement plan Medical insurance. |
Independent Investor $65,000 / year. 60 hrs/ week No retirement plan No Medical insurance. | Corporate Investor $85,000 / year. 60 hrs/ week No retirement plan Medical insurance. | PhD student & T.A. $18,000 / year. 60 hrs/ week No retirement plan Medical insurance. | Scientific Researcher $35,000/ year. 50 hrs/ week No retirement plan Medical insurance. | On Disability $1,900 / month. No retirement plan No Medical insurance. | Unemployed $1,090 / month if single, $1,550 if you have a child No retirement plan No Medical insurance. |
MY GROSS INCOME (+)
The money you get regularly from jobs, investments, government aid, etc.
GROSS means this is the total BEFORE taxes and other deductions are removed.
REVENUE SOURCE | PER YEAR |
FROM EMPLOYMENT (Employed or self-employed) | + |
FROM THE GOVERNMENT �(Unemployed, on Disability or Welfare) | + |
CHILD SUPPORT ($400 per child per month before taxes) | + |
INVESTMENT DIVIDENDS (You receive interest on any assets of 5% per year) | + |
GROSS INCOME TOTAL:
| + |
A SNAPSHOT INTO MY LIFE: BEFORE
Using only pictures and single words, show us what you think it’s like living your life.
INCOME TAX (-)
WHAT’S THE DEAL WITH TAXES? Listen and read more on the topic of
Federal Income Tax, Provincial Income Tax, and Municipal Property Taxes.
Summarize the services paid for by each level of government taxes in Canada!
Learn all about Tax Brackets?
FEDERAL TAXES PAY FOR: | PROVINCIAL TAXES PAY FOR: | MUNICIPAL TAXES PAY FOR: | CPP IS: |
| | | |
PROVINCIAL INCOME TAX
BRACKETS: | BASE INCOME | BRACKET 1 | BRACKET 2 | BRACKET 3 | ANNUAL GROSS INCOME $_________ |
PROVINCIAL | < $11,000 @ 0% | $11,000 - $45,000 @ 5% | $45,000 - $90,000 @10% | $90,000 - $150,000 @12% | $_________ |
The FIRST $11,000 of my income is in this pocket. | The NEXT $34,000 of my income is in this pocket. | The NEXT $45,000 of my income is in this pocket. | The NEXT $60,000 of my income is in this pocket. | ||
HOW MUCH of my income is in this pocket? $_________ | HOW MUCH of my income is in this pocket? $_________ | HOW MUCH of my income is in this pocket? $_________ | HOW MUCH of my income is in this pocket? $_________ | ||
$11,000 / 100 X 0 = $0 Provincial tax paid on the basic income amount. | (CALCULATIONS) | (CALCULATIONS) | (CALCULATIONS) |
FEDERAL INCOME TAX
BRACKETS: | BASE INCOME | BRACKET 1 | BRACKET 2 | BRACKET 3 | ANNUAL GROSS INCOME $_________ |
FEDERAL: | < $13,000 @ 0% | $13,000 - $45,000 @15% | $45,000 - $90,000 @20% | $90,000 - $150,000 @25% | $_________ |
The FIRST $13,000 of my income is in this pocket. | The NEXT $32,000 of my income is in this pocket. | The NEXT $45,000 of my income is in this pocket. | The NEXT $60,000 of my income is in this pocket. | ||
HOW MUCH of my income is in this pocket? $_________ | HOW MUCH of my income is in this pocket? $_________ | HOW MUCH of my income is in this pocket? $_________ | HOW MUCH of my income is in this pocket? $_________ | ||
$11,000 / 100 X 0 = $0 Federal tax paid on the basic income amount. | (CALCULATIONS) | (CALCULATIONS) | (CALCULATIONS) |
TYPE OF DEDUCTION | Calculations | GROSS INCOME $_________ | |||
PROVINCIAL | TOTAL PROVINCIAL TAX DEDUCTIONS | - $_________ | |||
FEDERAL | TOTAL FEDERAL TAX DEDUCTIONS | - $_________ | |||
CPP | Do you work for a company? You will pay your contribution of 5.5% of your gross income, to a maximum of $3,000. (CALCULATIONS) | Are you self-employed? You will pay your contribution of 11% of your gross income, to a maximum of $6,000. (CALCULATIONS) | - $_________ | ||
NET INCOME | What is left for ALL of your expenses is your NET INCOME: | = $_________ | |||
MY TOTAL DEDUCTIONS:
OR
MY NET INCOME (+)
Money you receive regularly as part of employment, investments, government subsidies, etc. NET means the that it is AFTER taxes and other deductions are levied.
YEARLY |
|
MONTHLY |
|
BI-WEEKLY |
|
WEEKLY |
|
MY IDEAL EXPENSES
Variable Expenses 25%�$_________
Savings 10%
$_________
Housing 35%
$_________
Transportation 15%
$_________
Debts 15%
$_________
MY MONTHLY NET INCOME
$________
CALCULATIONS
CALCULATIONS
CALCULATIONS
CALCULATIONS
CALCULATIONS
What should I plan to spend when making a budget?
MY IDEAL EXPENSES
List the different types of expenses in each category. Discuss with your caring adults!
HOUSING | SAVINGS | DEBT | TRANSPORTATION | OTHER EXPENSES |
| | | | |
DEBTS
A debt is money you owe to someone else. USEFUL debts are student loans, a mortgage, etc. HARMFUL debts are credit card debts, bank loans, consumer spending debt, Payday loans, etc. Make a payment plan that pays off your debts in less than 2 years! Calculate your debts!
TYPE OF DEBT | THE AMOUNT | INTEREST RATE (%) | TOTAL INTEREST PAID | MONTHLY PAYMENTS |
(TYPE OF DEBT) |
| __% |
|
|
(TYPE OF DEBT) |
| __% |
|
|
TOTAL |
| __% (average) |
|
|
SAVINGS
Money you save for the future, emergencies, retirement, etc.
RETIREMENT Preparing for life after working. | |
Describe your dream retirement! How old are you? How do you want to live? What are your goals? | |
How much money do you need to have at retirement to live the way you want? Why? | |
MY SAVINGS PLAN Every month, I will save... | |
EMERGENCY FUND Save at least $50 per month for emergencies. |
|
RETIREMENT Pension? Save up to 5% of your net income. No Pension? Save up to 10% of your net income. |
|
OTHER GOALS A house? A car? A trip? |
|
TOTAL: |
|
HOUSING
The eternal question: BUY OR RENT? Explore housing rentals!
WANT TO RENT? | |
MONTHLY EXPENSES | COST / MONTH |
RENT |
|
Utilities (10% of the rent, if not included) |
|
Insurance |
|
Maintenance Furniture, decor (Just upkeep - not all new furniture) |
|
THE TOTAL TO RENT |
|
(My chosen rental listing)
HOUSING
The eternal question: BUY OR RENT?
WANT TO BUY? | |
MONTHLY EXPENSES | COST/ MONTH |
MORTGAGE |
|
Property taxes |
|
Utilities (15% of the mortgage cost) |
|
Insurance |
|
Maintenance Repairs, saving for future costs (like new roof, new furnace, etc. - about 1% of the value of your home per year) |
|
MONTHLY TOTAL TO BUY |
|
(my chosen house or condo listing)
Don’t forget: First time home buyers need at LEAST 5% of the total value of their home in cash in order to get a mortgage loan!
TRANSPORTATION
How will you commute to work each day? Travel outside of the city?
Go to parties in the evenings? You need a plan for all occasions!
CAR | |
MONTHLY EXPENSES | COST / MONTH |
Car payment |
|
Gas $100 or more / month |
|
Parking $20 / day in the city, $10 / evening |
|
Insurance $175/ month for women, $200/ month for men |
|
Taxi/ Uber/ Public Transit Sometimes you cannot drive. |
|
CAR TOTAL |
|
(Car purchase listing)
TRANSPORTATION
How will you commute to work each day? Travel outside of the city? Go to parties in the evenings? You need a plan for all occasions!
NO CAR | |
MONTHLY EXPENSES | COST / MONTH |
| |
Taxis / Ubers | |
Bicycling & walking | FREE! |
Carpool Pitching in for shared rides | |
LE TOTAL (car + alternative) | |
I decided to buy a car/ not buy a car because_____.
To commute to work, I will ______.
To go out to social events, I will ______.
To do errands and shopping each week, I will ______.
To explore and travel on weekends, I will _______.
VARIABLE EXPENSES
Here are all of my varied and flexible expenses. I control them! What are my priorities?
EXPENSE | $ / MONTH |
Provisions Food, grooming, cleaning supplies, toiletries, etc. | |
Personal Care Services Haircuts, manicures, spas, massage, physio, etc. | |
Internet (*source: list the source with a hyperlink) | |
Telephone (cell? home?) (*source: list the source with a hyperlink) | |
Medical expenses Prescriptions, vision, medication, dental visits, etc. $20 with insurance, $60 without insurance | |
Laundry $40 per month if you are in an apt. | |
Child care Daycare, nannies, babysitters, etc. | |
EXPENSE | $ / MONTH |
Pets Food, vet visits, grooming, etc. | |
Clothing Seasonal clothing, outerwear, boots, shoes, etc. | |
Charitable Giving | |
Dining out (restaurants & take-out) | |
Gifts and Celebrations | |
Hobbies & Self-development Clubs, sports, hobbies, memberships, etc. | |
Entertainment Events, concerts, etc. | |
Travel Vacation, trips | |
OTHER EXPENSES : FOOD
Represent using pictures with real prices what you can buy with the money you have allocated in ONE WEEK WORTH OF GROCERIES. Be specific!
OTHER EXPENSES : (CATEGORY)
Choose ONE category from the following choices: Entertainment, Dining Out, Pets, or Hobbies.
Represent using pictures with real prices what you can buy with the money you have allocated in ONE MONTH WORTH OF ALLOCATIONS. Be specific!
MY ACTUAL EXPENSES
Variable Expenses __%�$_________
Savings __%
$_________
Housing __%
$_________
Transportation __%
$_________
Debts __%
$_________
MY MONTHLY NET INCOME
$________
CALCULATIONS
CALCULATIONS
CALCULATIONS
CALCULATIONS
CALCULATIONS
What did I ACTUALLY spend in my final budget?
It MUST all add up to 100%.
A SNAPSHOT INTO MY LIFE: REALITY
Using only pictures and single words, show us what it’s like living your life.
MY REFLECTION
I was surprised to learn: | When I am an adult, I will… | When I am an adult, I will not... | The most useful budgeting skill I have learned is how to… |
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