Question

Fill in all income and expenses on the form with the information provided. Remember to compute net pay by taking 20% out for taxes.

1 Marcus, a high school student, works at a lumber yard ma king $10.50 an hour. With his academic and
sports schedule, he is able to work 25 hours a week. He can pick up extra hours, but not consistently.
Marcus lives at home, so he has very few bills. He is responsible for his cell phone bill, which is $65 a
month. He pays for his auto insurance, which is $1,200 a year, and he pays for gas, maintenance and
repairs on his car. Lastly, Marcus is responsible for his spending money. He has a fully funded emergency
fund of $500 but has a goal of saving additional money for new tires. (As a high school student, assume that
groceries, health insurance and utilities are expenses covered by his parents.)

Start Here to begin your journey toward financial success

Giving
Charity:
Other:
Giving total:

Transportation
Gas:
Car Insurance:
Oil Changes:
License & Taxes:
Transportation total:

Saving
Emergency Fund:
College:
Car & Repairs:
Computer:
Other:
Saving total:

Personal
Cosmetics/Hair Care:
Music/Technology:
Gifts:
Pocket Money:
Cell Phone:
Other:
Personal total:

Food
Restaurants/Eating Out:
School Lunch/Snacks:
Food total:

Clothing
Clothes:
Sports Jerseys / Apparel
Clothing total:

Recreation
Movies:
Concerts:
Sporting Events:
Other:
Recreation Total:
$Monthly Income - $Monthly Outgo = $Zero!

Answer 1

To fill in the form accurately, we first need to calculate Marcus's monthly income and then summarize his expenses in each category. Here’s how it breaks down:

### Step 1. Calculate Monthly Income
**Hourly Wage:** $10.50
**Hours Worked per Week:** 25

**Weekly Income:**
$10.50 * 25 = $262.50

**Monthly Income:**
$262.50 * 4 (weeks) = $1,050.00

**Taxes (20%):**
Net Income after taxes = Monthly Income - Taxes
Taxes = $1,050 * 0.20 = $210
Net Income = $1,050 - $210 = $840

### Step 2. Fill in Expenses
#### 1. Giving
- **Charity:** $0
- **Other:** $0
**Giving Total:** $0

#### 2. Transportation
- **Gas:** $0 (Assuming he’s not responsible for ongoing gas expenses or they are covered)
- **Car Insurance:** $1,200/year / 12 months = $100/month
- **Oil Changes:** $0 (assume not a monthly cost)
- **License & Taxes:** $0 (assume not responsible for this at the moment)
**Transportation Total:** $100

#### 3. Saving
- **Emergency Fund:** $0 (already fully funded)
- **College:** $0 (assume not saving for college yet)
- **Car & Repairs:** $0 (assume saving not specified)
- **Computer:** $0 (assume not saving for this)
- **Other:** $0
**Saving Total:** $0

#### 4. Personal
- **Cosmetics/Hair Care:** $0
- **Music/Technology:** $0
- **Gifts:** $0
- **Pocket Money:** $0
- **Cell Phone:** $65
- **Other:** $0
**Personal Total:** $65

#### 5. Food
- **Restaurants/Eating Out:** $0
- **School Lunch/Snacks:** $0
**Food Total:** $0

#### 6. Clothing
- **Clothes:** $0
- **Sports Jerseys/Apparel:** $0
**Clothing Total:** $0

#### 7. Recreation
- **Movies:** $0
- **Concerts:** $0
- **Sporting Events:** $0
- **Other:** $0
**Recreation Total:** $0

### Step 3. Complete the Overall Summary

#### Monthly Income
- **Net Monthly Income:** $840

#### Monthly Expenses
- **Giving Total:** $0
- **Transportation Total:** $100
- **Saving Total:** $0
- **Personal Total:** $65
- **Food Total:** $0
- **Clothing Total:** $0
- **Recreation Total:** $0

#### Total Monthly Outgo
= Giving Total + Transportation Total + Saving Total + Personal Total + Food Total + Clothing Total + Recreation Total
= $0 + $100 + $0 + $65 + $0 + $0 + $0
= $165

### Final Calculation
- **Monthly Income (Net):** $840
- **Monthly Outgo:** $165
- **Monthly Surplus (Net Income - Monthly Outgo):**
$840 - $165 = $675

### Summary
- Marcus’s monthly budget would look like this:

```
Giving
Charity: $0
Other: $0
Giving total: $0

Transportation
Gas: $0
Car Insurance: $100
Oil Changes: $0
License & Taxes: $0
Transportation total: $100

Saving
Emergency Fund: $0
College: $0
Car & Repairs: $0
Computer: $0
Other: $0
Saving total: $0

Personal
Cosmetics/Hair Care: $0
Music/Technology: $0
Gifts: $0
Pocket Money: $0
Cell Phone: $65
Other: $0
Personal total: $65

Food
Restaurants/Eating Out: $0
School Lunch/Snacks: $0
Food total: $0

Clothing
Clothes: $0
Sports Jerseys/Apparel: $0
Clothing total: $0

Recreation
Movies: $0
Concerts: $0
Sporting Events: $0
Other: $0
Recreation Total: $0

Monthly Income: $840
Monthly Outgo: $165
Net Monthly Surplus: $675
```

Marcus has a healthy surplus of $675 remaining each month after his expenses!