Budget Activity Template

Step 1: Follow the “Finding a Salary” directions posted this week on Moodle.

EXAMPLE: Broadcast Technician – State Average Annual Earnings - $31,150

Step 2: Once you find your intended career’s average annual earnings divide that amount by 12 to get your estimated monthly income.

EXAMPLE: $31,150/12 = $2,596

Step 3: Multiply this amount by 28% (the average amount of payroll deductions - taxes, retirement plans, and medical insurance). NOTICE: This amount will vary based on factors such as income amount and filing status. Subtract this amount from your estimated monthly amount. This is your estimated monthly take-home amount you will use to create your budget.

EXAMPLE: $2,596 x 28% = $727 $2,596 - 727 = $1,869

Step 4: Figure your expenses (Category percentages based on information from personal finance expert, Carmen Ulrich):

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|Housing – 30% - This includes a mortgage or lease, taxes and insurance. |
|EXAMPLE: $1,869 x 30% = $561 |
|Transportation – 18% - This includes a car payment, gas, insurance and maintenance. |
|EXAMPLE: $1,869 x 18% = $336 |
|Debt – 10% - This includes any debt such as credit cards or student loans. If you are lucky enough to live debt-free, use this amount toward |
|something else like savings or toward an emergency fund. |
|EXAMPLE: $1,869 x 10% = $187 |
|Food – 14% - This includes toiletries and other things you need on a daily basis. |
|EXAMPLE: $1,869 x 14% = $262 |
|Household – 7% - This includes electric, phone, cable/satellite, etc. |
|EXAMPLE: $1,869 x 7% = $131 |
|Savings – 10% - You can either use this money for short-term items like vacations or longer-term goals like retirement. |
|EXAMPLE: $1,869 x 10% = $187 |
|Everything Else – 11% - Whether it’s charity, clothing, childcare or additional medical costs, make sure to leave some room for miscellaneous |
|monthly expenses. |
|EXAMPLE: $1,869 x 11% = $206 |

Step 5: Fill in the table using your information and budget amounts:

| |From The Example Given |Your Information |
|Your Desired Career Field |Broadcast Technician |Business Administration |
|State Average Annual Earnings (from CFNC) |$31,150 |$40,250 |
|Estimated Monthly Income |$2,596 |$3,354