# Financial Literacy

By: BN

**Yearly and Monthly Income**

My occupation is a pilot, with a $82,000 annual salary. The yearly net income I would receive is $69,700. I know this because I calculated and subtracted a 15% tax from $82,000. The monthly net income I would receive is $5,808.32 because $69,700 divided by 12 is $5,808.32.

**Savings**

My original savings for the month were $580.83. I calculated this by multiplying my monthly income by .10, or 10%. I was taking 10% out of my monthly income for savings. Looking at my budget, I had a cheaper car payment than most cars, and I didn't pay much for entertainment or clothing. The result of this was that I ended up saving $2,641.42 for the month, $15,848.52 for 6 months, and $31,697.04 in one year. I am saving much, much more than the minimum of $580.83.

**House and Car **

I chose the small house because I wanted to have my own property, yet have money left over for extra things. The utilities cost a little more as well, but all in all my house payment was $1,375.00. I still had about $900.00 left. The car that I chose was a Ford Fiesta because I wanted a car that allowed me to have money left over for updates or other extras.

**Groceries **

The first list is my grocery list. My list contains basic foods, like fruit, vegetables, pasta, vegetable oil, and dairy. To save money, I bought yeast to make my own bread instead of buying it, and I bought lots of spices to make my own sauces.

**My Budget**

The last list is my budget. First, my savings are subtracted from my monthly net income. After that, fixed expenses such as car payment, utilities, and gas. Next is groceries. Because of the ways that I saved money, I ended up spending $402.90. If I had done these things differently, I might have spent much more than I did. I don't buy clothes or go to any entertainment places very often, so I didn't spend much on these. I spent $80.00 on pets, $150.00 for health insurance, and $80.00 for the phone. The last things on my budget are restaurant payments, for $120.00 and $500.00 for fun money, which I can spend on anything I want to. My budget is balanced because I have no money left over at the end of the month.

**Conclusion**

This project had lots of steps, but it turned out to be really fun and educational. Before we started any budgeting, we had to pick an occupation and write down the salary. Then we subtracted 15% tax from our annual salary, and found our annual and monthly net income. After we found the monthly net income, we took out 10% of our money for savings. Next we took our monthly income and multiplied it by .35 to get our monthly housing budget including the utilities, such as electricity. We also found our monthly car budget by multiplying the monthly income by .15. The next step was to interview an adult to find out how to estimate the cost of expenses like gas, entertainment, and health insurance, and find out how much your family actually spends on these. Afterward, we filled out a spreadsheet using a balanced budget including savings, fixed, and variable expenses. Lastly, we created a presentation. This project was important because it taught us about real world situations that everyone has to deal with at some point. I now know how to manage my money by finding ways to save and finding out how much I really spend on things. I know that this will help me a lot when I am older.