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Documents
Creating a New Budget Student Guide pdf
Creating a New Budget Student Guide doc
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Student Assignment
In this assignment, you will create a budget and answer questions about how your budget has
successfully met short-term and long-term goals.
Assignment Instructions
Step 1: Gather materials and necessary information.
a) Ask your teacher which word-processing software you will be using.
b) Keep your lesson and assignment open in case you need to review what you have
learned.
Step 2: Read and follow each set of instructions carefully.
a) To create your budget, type an amount of money into each cell of the tables you have
been given. Be sure to ask your teacher for help if you are not sure how to do this.
b) Make sure you complete the questions on each page.
Assignment: Revising a Budget
You have just been promoted at your job, and now you have a net income of $2,190. You would like
to use this income to meet new financial goals.
1. Create a budget that will allow you to save at least $300 per month. (10 points)
Remember, your old budget reflected a net income of $1850.00 and included these expenses:
• $600 for your rent
• $475 for your car payment, car insurance, and gas
• $230 for your utilities, phone, and Internet
• $300 for your groceries
• $50 for your entertainment
• $20 for your renters insurance
• $75 for discretionary spending
• A final net total of $100 saved per month
Your new budget needs to include these changes:
• A new line to budget $50 per month toward a new computer
• Other expenses may be modified as you choose.
• A final net total of at least $300 saved per month
Scroll to the next page to edit your budget with these changes in mind.
Student Guide (continued)
Copyright © Edgenuity Inc.
Monthly Personal Budget
Income and Expenses Old Budget

Answer 1

Below is a revised monthly budget using your new net income of $2,190 that meets the requirement to save at least $300/month and includes $50/month for a new computer.

Monthly Personal Budget
- Net income: $2,190

Expenses
- Rent: $600
- Car payment, car insurance, gas: $475
- Utilities, phone, Internet: $230
- Groceries: $300
- Entertainment: $50
- Renters insurance: $20
- Discretionary spending: $75
- New computer fund: $50
- Retirement contribution (long‑term goal): $90

Total monthly expenses (including retirement contribution): $1,890

Savings
- Emergency/other savings (final net total saved per month): $300

Summary
- Total income: $2,190
- Total expenses + savings: $2,190
- Final net saved each month: $300

How this meets short-term and long-term goals
- Short-term goal (new computer): Allocating $50/month to the computer fund means a $600 computer could be purchased in 12 months. If you need the computer sooner, you could temporarily redirect part of discretionary spending or a portion of monthly savings.
- Long-term goal (retirement / financial security): The budget adds a $90/month retirement contribution plus $300/month to emergency/other savings. That’s $3,600/year to emergency savings and $1,080/year to retirement — $4,680 total per year toward long‑term goals. Over time this builds an emergency fund and retirement balance, and can be increased later as needed.

Why these changes work
- Your income increased by $340/month (from $1,850 to $2,190). You raised your monthly saved amount from $100 to $300 (+$200). The remaining $140 from the pay increase is split $50 for a computer fund and $90 toward retirement — fully accounting for the $340 increase without cutting core living expenses.

If you want, I can:
- show an alternative budget that prioritizes buying the computer faster,
- show a timeline / savings projection for different computer price points,
- or convert this into a printable table or spreadsheet format. Which would you prefer?