Let's Get Some Information
Before we can make a budget,
we're going to need a lot of information. There are two files to the right. The first is a budget template for you to fill in. The second is a completed budget - what yours should look like when it's done! |
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Your Income (Paycheck)
Let's start with your paycheck.
Do you have a job already?
If yes, find your pay stubs for the past month.
Add them together.
Here's a calculator link if you need it.
Record this number on the income line of the worksheet.
If you don't have a job yet, you'll have to do a little more work.
You can estimate your pay.
Likely you'll be working for minimum wage. Click here to learn the current minimum wage rate. Enter this on the worksheet.
Now, how many hours will your work a week? There are laws restricting the hours you can work depending on your age.
Age 14-15 Click here.
Age 16-17 Click here.
Age 18 Click here.
Ask your working friends how many hours they work a week. Use their numbers to estimate your hours. Be sure to consider after school and weekend activities such as sports or homework when figuring out the number of hours you can work. When you've estimated your hours per week, enter it on the worksheet.
The worksheet will automatically calculate the rest. But just so you know...
Multiply minimum wage by the hours you plan to work. This is your weekly pay. Multiply it by four to get your monthly pay.
So you don't over-budget, we've subtracted 20% for taxes (totally not fair...I know!)
Do you have a job already?
If yes, find your pay stubs for the past month.
Add them together.
Here's a calculator link if you need it.
Record this number on the income line of the worksheet.
If you don't have a job yet, you'll have to do a little more work.
You can estimate your pay.
Likely you'll be working for minimum wage. Click here to learn the current minimum wage rate. Enter this on the worksheet.
Now, how many hours will your work a week? There are laws restricting the hours you can work depending on your age.
Age 14-15 Click here.
Age 16-17 Click here.
Age 18 Click here.
Ask your working friends how many hours they work a week. Use their numbers to estimate your hours. Be sure to consider after school and weekend activities such as sports or homework when figuring out the number of hours you can work. When you've estimated your hours per week, enter it on the worksheet.
The worksheet will automatically calculate the rest. But just so you know...
Multiply minimum wage by the hours you plan to work. This is your weekly pay. Multiply it by four to get your monthly pay.
So you don't over-budget, we've subtracted 20% for taxes (totally not fair...I know!)
General Expenses
Ok, now we know how much you earn each month but not all that money can go towards your car.
What else do you need money for?
Food? Clothes? Movies? Going Out With Friends? What else?
Add all of these to your worksheet.
Are there any areas you can cut back on?
Watch this video to learn more about managing your money.
What else do you need money for?
Food? Clothes? Movies? Going Out With Friends? What else?
Add all of these to your worksheet.
Are there any areas you can cut back on?
Watch this video to learn more about managing your money.
Did you get any ideas of expenses you can cut back on? Make adjustments to your worksheet.
The worksheet will automatically calculate the rest. But just so you know...
All of your expenses were added up and subtracted from your monthly pay.
This is how much you have left to spend on a car.
The worksheet will automatically calculate the rest. But just so you know...
All of your expenses were added up and subtracted from your monthly pay.
This is how much you have left to spend on a car.
Is This Your Car Payment?
Gas
First we need to know how many miles you're going to drive in the average week.
On your worksheet, write down everywhere you think you'll drive.
School? Work? Your Friend's House? The Mall?
Now, you'll need to know how many miles it is to and from each of those places.
Use MapQuest to figure this out. Click here to see what you need to do.
Record all of your miles on your worksheet. Then input how many days a week you'll make the trip.
The spreadsheet will calculate the next part. But just so you know...
Miles were multiplied by days to get the number of miles you'll spend driving to each location each week. These were added up to get your total miles for the week.
Because we're figuring a monthly budget, we multiplied this by 4 to get your monthly miles.
Now that we know how many miles you're going to drive, we need to figure out how many gallons of gas that will take. Because we don't know what type of car you're going to buy, we'll figure several mpg (miles per gallon) numbers.
Assume you're monthly miles total was 400. At 15 mpg, you would need 26.7 gallons of gas (400/15). At 20 mpg, you would need 20 gallons of gas (400/20). This has calculated on your worksheet. If you think the car you want will get higher or lower mpg, fill in the blank row.
Now we'll use your gallons/month number to figure fuel cost. First of all, how much is a gallon of gas? This web-site provides a great chart that lists the national average of a gallon of gas. Remember, gas prices fluctuate so your actual fuel costs may be above or below what you calculate today.
On your worksheet, fill in the fuel price. These are multiplied to get your cost of fuel per month for each mile per gallon category.
On your worksheet, write down everywhere you think you'll drive.
School? Work? Your Friend's House? The Mall?
Now, you'll need to know how many miles it is to and from each of those places.
Use MapQuest to figure this out. Click here to see what you need to do.
Record all of your miles on your worksheet. Then input how many days a week you'll make the trip.
The spreadsheet will calculate the next part. But just so you know...
Miles were multiplied by days to get the number of miles you'll spend driving to each location each week. These were added up to get your total miles for the week.
Because we're figuring a monthly budget, we multiplied this by 4 to get your monthly miles.
Now that we know how many miles you're going to drive, we need to figure out how many gallons of gas that will take. Because we don't know what type of car you're going to buy, we'll figure several mpg (miles per gallon) numbers.
Assume you're monthly miles total was 400. At 15 mpg, you would need 26.7 gallons of gas (400/15). At 20 mpg, you would need 20 gallons of gas (400/20). This has calculated on your worksheet. If you think the car you want will get higher or lower mpg, fill in the blank row.
Now we'll use your gallons/month number to figure fuel cost. First of all, how much is a gallon of gas? This web-site provides a great chart that lists the national average of a gallon of gas. Remember, gas prices fluctuate so your actual fuel costs may be above or below what you calculate today.
On your worksheet, fill in the fuel price. These are multiplied to get your cost of fuel per month for each mile per gallon category.
Holy Cow!
Insurance
Most states require drivers to carry car insurance. The price of your insurance will depend on the type of vehicle you are driving, the amount of coverage and whether you're a guy or girl (insurance is more expensive for guys, what's up with that?) Watch this video to learn more about insurance before you move on.
Remember, because you don't know what kind of car you'll be driving, this will only be an estimate. As you start looking for a car, you can get a more accurate quote from your parent's insurance agent. Click here for some information about the insurance estimator and some calculations you'll need to know.
Once you have your high and low quotes. Add them to your worksheet.
Once you have your high and low quotes. Add them to your worksheet.
Doing the Math
Now it's time to figure out how much you can afford for a monthly car payment. Once we have that number, we'll back into the price of a car you can afford!
The worksheet looks at your monthly pay.
Then it adds up all of your expenses:
You need to input your gas (pick an mpg, you can adjust this later)
Then it takes your Monthly Pay - Expenses = Monthly Car Payment
The worksheet looks at your monthly pay.
Then it adds up all of your expenses:
You need to input your gas (pick an mpg, you can adjust this later)
Then it takes your Monthly Pay - Expenses = Monthly Car Payment
What Can You Afford?
We will use a loan calculator to see what kind of a car you can afford! Are you ready? Click here to learn how to get your number then add it to your worksheet!
When you're done, click to move on!
When you're done, click to move on!