Household budget time— or, where does the money go?


    Note:  ALL expenses will be converted to monthly!  You are in a family of two adults,  3 year old, and a 16 year old child.


    Right NOW--  decide what your kids genders and names are. 

    Next—what job do you have? (must match income level; ask for help or use http://www.indeed.com/salary)  Income and financial details are on the slip of paper your family received.

    Then-- Here is a list of stuff you must budget for:

    I.  Food-- you made a menu for seven days, three meals per day.  Now your new family must make a Consensus family menu.  Next, make a grocery list to buy the items required to make those meals.  Itemize your grocery list; use the receipts or sale papers you brought in today for specifics—price, brand, size.  Calculate a weekly grocery total cost, then convert it to monthly.


    II.  Also:(in no particular order)

    Clothing                      Phone                        toiletries                    

    Cable                          education                   shelter                        

    Electric                       water/sewer               gas                             

    Entertainment            vacation                      insurances                 savings                       garbage removal

    Laundry                      health care                 heat
    etcetera (what did I forget?)
    Taxes(income, property)

    III.  Fit the expenses above into these categories:

    1. food   

    2. shelter   

    3. clothing   

    4. transportation   

    5. entertainment   

    6. savings

    7. miscellaneous expenses


    IV.  Details to remember:

    1.  Be sure you have accounted for all of your income

    2.  Calculate % of total income spent for the general categories listed above

    (Total spent/total monthly income; then times 100= %monthly income)


    3.  To rent, you need the first month’s rent plus one month security.  Utilities are not always included

    4.  To buy, you need 10% down; your interest rate is 6% over 30 years (use your mortgage calculator or ask me for help).

Last Modified on January 5, 2011