$ Balancing Your Budget Activity $

Expenses

Expenses are the money you spend on the things you need or want. There are many different types of expenses. However, some basic categories of expenses are necessities. We will focus on those. Listed below are 11 different expense categories. As you figure out each amount, enter that figure in your Budget Table.

Expense	Description	Website
Housing	For this project, your only housing option is an apartment. When you get out of college, unfortunately you won’t have enough money for a down payment on a house. As you search for a place to live, remember, the better or nicer the city, the more you’ll pay. Also consider some of the amenities you want…a pool, fitness center, etc. Try to think if the city or state you live in is appropriate for your job.	http://www.apartments.com/ When you have your city picked and you search for an apartment, do not narrow your search options so much (example, searching for an apartment costing between $150 - $200). You won’t find anything if your rent is not realistic or too small a window.
Car	For this project, you must buy a New Car; and seeing how you are fresh out of college, you do not have money for a down payment. You wouldn’t want to have some rusted used car when you’re trying to impress new co-workers and friends.	http://www.cars.com/go/index.jsp You must buy a new car for this project. Click ‘Search New’ once you know what you want. Then click ‘Search Local Inventory’. Click on the car you want. Finally click on ‘Finance and Loan Calculator’ to get your monthly payment.
Food	Since eating habits vary, it can be difficult to generalize about this expense. If you prepare and eat most of your meals at home, you would spend roughly $300 a month on food. If you eat out a lot, that expense could double.	No website…use your best judgment as to how much you would spend on food and use that amount. Or, better yet, ask your parents how much they spend on food.
Electricity	Your landlord normally pays for other utilities, such as water and gas. Electricity is one of the easier expenses to keep down. How often is your father telling you to turn the lights off? Electricity costs can vary greatly depending on where you live and the size of your apartment.	No website again. 10% of your rent has been budgeted for electricity costs.
Phone	The days of having a land locked phone are over. Everybody has gone mobile. Using Verizon’s website, choose a plan that works for you. The more minutes you’ll need on the phone, the more you’ll pay.	http://www.verizonwireless.com/b2c/index.jsp Click on plans on the home page (we’ll assume you already have a phone). If you don’t know your new city’s zip code, you can use Westlake’s. Pick a plan under the individual voice plan.
Cable	Believe it or not, there was no cable television 40 years ago so people just watched what was on the major networks. Times have changed, so if you can’t live without cable, decide which option is the best for you.	http://www.cox.com/ is the company used in the Cleveland area and many other parts of the country. However, finding the actual price is quite difficult (there are a lot of “extras” you have to pay for). If you want basic cable, enter $60. If you want basic cable with movie channels like HBO, make it $80.
Clothing	Coming out of college, you will have plenty of casual clothes. What you will need are clothes for you new career, which can be very expensive. New business suits cost between $200 and $400.	No website, so do this: if your career requires dress clothes, set aside $450 a month for clothing. If not, input $225 in your Budget Table.
Entertainment	“All work and no play…” or so the saying goes. What entertainment and recreation activities interest you? Movies, sports, a vacation?	Use your estimating skills to calculate how much money you would spend on going out. Are you cheap or willing to splurge? Nothing less than $100 though.
Student Loan	Most people end up taking out a student loan while in college. Depending on where you go to school, loan amounts can be quite large. Hopefully, you can get a summer job and your parents can help pay for college. For this project, we will assume that your parents can pay for everything such as room and board, books, and spending money. You will have to pay for the actual cost of school.	http://apps.collegeboard.com/search/index.jsp use this site to search for a college if you don’t know which one you would like to attend. Click on see profile, and then on cost and financial aid. Look at the tuition. Are you an in-state or out-of-state student? The cost shown is only for one-semester, or half-a-year. Plan on going to college for 4 years. Multiply the tuition by 8 (4 years, 2 semesters per year). If your career causes you to need more college (i.e. doctor, lawyer, etc., multiply by more than 8.)That is your loan balance…enter that at: Student loan calculator use this site to calculate your monthly payment. Put the interest rate at 4% and the loan term at 15 years.
Savings	Savings isn’t necessarily an expense, but it is something you have to allocate money for each month.	The Budget Table has already allocated 5% of your monthly income for savings.
Miscellaneous	When you make a budget, it’s always a good idea to set aside some money for unforeseen expenses, such as car repairs, gas, health problems, girl / boyfriend, road trips, etc.	The Budget Table has already allocated 7% of your monthly income for miscellaneous expenses