Personal Finance Options• Download and save the budget planner• The PowerPoint slides go in the same order as the budget planner. Go through the slides

and purchase all the items you want, and put the price in the appropriate spot of the planner.

• Take your time and don’t worry about spending more than you have initially. Buy what you want. Do your math carefully.

• Once you complete the entire budget look at your results on the result page and on the print screen page.

• Write down how much money you spent and note the difference between your income and your expenses on a weekly basis. These numbers need to be part of your final presentation.

• Go back through the budget piece by piece and using the internet see what items you can actually save money on, and which items you need to eliminate. Any changes need to be approved by Mr. Glashauser.

• Once you are satisfied with your budget answer the following questions.a . How did you determine what was most important to spend your $$ on and why?b. What are some other costs you might incur that are not listed?c. What would you like, but simply can’t afford? What would be your plan to eventually earn it?d. How much savings do you have and what is your plan for it?e. How comfortable are you with your savings?

• You are going to present to the class your print screen page and your answers to the above questions. Be sure to identify areas you made savings and how your earned those savings.

Income Level

1. Level 1 $8.75/hr $350/wk$18,200/yr

2. Level 2 $12/hr $480/wk$24,960/yr

3. Level 3 $15/hr $600/wk$31,200/yr

4. Level 4 $17/hr $680/wk$35,360/yr

5. Level 5 $20/hr $800/wk$41,600/yr

6. Level 6 $25/hr $1000/wk$52,000/yr

7. Are you Single, or are you Married with 1 child?

Buying a Home

House #1 2250 sq/ft 4 beds, 2 bathsBuilt: 1960Location: Town of SalinaCost: $80,000 Assessed Value $75,00030 year mortgage: $432/mo.Property/School Taxes: $284/mo.

Buying a Home

House #2 1364 sq/ft 3 beds 1 bathBuilt: 1922Location: SyracuseCost: $80,000 Assessed Value: $71,40030 year mortgage: $432/mo.Property/School Taxes: $232/mo.

Buying a Home

House #3 1019 sq/ft 3 beds 1 bathBuilt: 1957Location: VanBurenCost: $90,000 Assessed Value: $75,70030 year mortgage: $486/mo.Property/School Taxes: $262/mo.

Buying a Home

House #4 864 sq/ft 3 beds 1 bathBuilt: 1966Location: ClayCost: $95,000 Assessed Value: $88,00030 year mortgage: $513/mo.Property/School Taxes: $497/mo.

Buying a Home

House #5 1464 sq/ft 4 beds 2 bathBuilt: 1928Location: SyracuseCost: $95,000 Assessed Value: $91,00030 year mortgage: $513/mo.Property/School Taxes: $337/mo.

Buying a Home

House #6 864 sq/ft 3 beds 1 bathBuilt: 1950Location: CiceroCost: $100,000 Assessed Value: $85,00030 year mortgage: $540/mo.Property/School Taxes: $319/mo.

Buying a Home

House #7 1457 sq/ft 3 beds 2 bathBuilt: 1950Location: ManliusCost: $105,000 Assessed Value: $139,50030 year mortgage: $567/mo.Property/School Taxes: $519/mo.

Buying a Home

House #8 1632 sq/ft 3 beds 1.5 bathBuilt: 1965Location: CamillusCost: $110,000 Assessed Value: $117,60030 year mortgage: $594/mo.Property/School Taxes: $416/mo.

Buying a Home

House #9 1344 sq/ft 3 beds 1.5 bathBuilt: 1934Location: SyracuseCost: $110,000 Assessed Value: $76,50030 year mortgage: $594/mo.Property/School Taxes: $275/mo.

Buying a Home

House #10 3015 sq/ft 4 beds 2 bathBuilt: 1890Location: SyracuseCost: $102,900 Assessed Value: $52,00030 year mortgage: $555/mo.Property/School Taxes: $203/mo.

Rent an Apartment

Apartment #1Location: Syracuse1 bed Cost: $785/mo2 bed Cost: $835/mo

Apartment #2Location: SyracuseCost: $650/mo2 bed Cost: $700/mo

Apartment #3Location: LiverpoolCost: $620/mo2 bed Cost: $690/mo

Apartment #4Location: BaldwinsvilleCost: $875/mo 2 bed Cost: $930/mo

Apartment #5Location: SyracuseCost: $515/mo2 bed Cost: $600/mo

Apartment #6Location: LiverpoolCost: $644/mo2 bed Cost: $689/mo

Buy a Car

New Car #1 (2015)Model: Chevy SparkCost: $15,0406 Years: $212/mo.

New Car #2 (2015)Model: Ford FiestaCost: $16,6606 Years: $257/mo.

New Car #3 (2015)Model: Toyota CorollaCost: $19,8546 Years: $320/mo.

Used Car #1 (2008)Model: Dodge CaliberCost: $6,9856 Years: $124/mo.

Used Car #2 (2007)Model: Kia SedonaCost: $7,9856 Years: $139/mo.

Used Car #3 (2014)Model: Mazda Touring SedanCost: $22,9906 Years: $350/mo.

How do you figure your Social Security and Medicare payments?

• Social Security is a public good funded by mandatory payments of all workers. The current tax rate is 6.2% of all of your salary up to $120,000.– EX: $30,000/yr salary multiplied by .062 = $1860/yr

$1860/52 weeks = $35.77/wk• Medicare is a public good funded by mandatory

payments of all workers. The current tax rate is 1.45%.– EX: $30,000/yr salary multiplied by .0145 = $435/yr

$435/52 weeks = $8.37/wk

How do I figure my annual Income Tax payments?• In NYS we pay both Federal and State income taxes. Both entities use a

bracket system.• The more you make the more you pay.• For example:

– Single person making $14,000– Pays 10% tax on all salary from $1 to $9225– Pays 15% tax on all salary from $9226 to $37,450. Or in this person’s case $9226 to $14,000.

• $9225 x .10 = $922.50• $14,000-$9225 = $4775 x .15 = $716.25• $922.50 + $716.25 = $1638.75/yr• $1638.75/52 weeks = $31.52/wk• This is just your Federal Tax, don’t forget your state tax. (next slide)See the excel Spreadsheet on front board for assistance.

Tax Rate Single Married/Joint& Widow(er)

2015 Federal TaxBrackets

10% $1 - $9,225 $1 - $18,450

15% $9,226 to $37,450 $18,451 to $74,900

25% $37,451 to $90,750 $74,901 to $151,200

28% $90,751 to $189,300 $151,201 to $230,450

33% $189,301 to $411,500 $230,451 to $411,500

35% $411,501 to $413,200 $411,501 to $464,850

39.6% over $413,200 over $464,850

Don’t forget to add your NYS Income Tax• For example:

– Single person making $14,000– Pays 4% tax on all salary from $1 to $8400– Pays 4.5% tax on all salary from $8401 to $11,600. – Pays 5.25% tax on all salary from

$11,601 to $13,750.– Pays 5.90% tax on all salary from

$13,751 to $21,150. Or in this person’s case $13,751 to $14,000.

• $8400 x .04 = $336• $11,600-$8401 = $3199 x .045 = $143.96• $13,750-$11,601 = $2149 x .0525 = $112.82• $14,000 - $13751 = $249 x .059 = $14.69

• $336 + 143.96 + $112.82 + $14.69 = $607.47/yr• $607.47/52 weeks = $11.68/wk

• See the excel spreadsheet on board for assistance

New York Taxable Income

Single Rate

$0 - $8,400 4.00%$8,400 - $11,600 4.50%

$11,600 - $13,750 5.25%

$13,750 - $21,150 5.90%

$21,150 - $79,600 6.45%

$79,600 - $212,500 6.65%

$212,500 - $1,062,650 6.85%

$1,062,650+ 8.82%

New York Taxable Income

MarriedRate

$0 - $16,950 4.00%

$16,950 - $23,300 4.50%

$23,300 - $27,550 5.25%

$27,550 - $42,450 5.90%

$42,450 - $159,350 6.45%

$159,350 - $318,750 6.65%

$318,750 - $2,125,450 6.85%

$2,125,450+ 8.82%

Total Income Tax Bill

• Be sure to add your Federal Income Tax to your State Income Tax to calculate your total Income Tax Bill.– EX. Single Person making $14,000/yr

• Federal Tax $1638.75/yr $31.52/wk• State Tax $607.47/yr $11.68/wk

• Total Tax $2246.22/yr $43.20/wk

• There are ways to reduce your tax bill. See Mr. Glashauser after entire budget is created. For help now see the front board for assistance.

Savings• A good rule of thumb is to pay yourself first.• Most experts suggest saving 10% or more of your income

each year.• The question you have to determine is how you are going

to save your money.• Options include– Savings account– CD– 401k/Mutual Fund– Stocks– Bonds

• You choose your amount and Mr. Glashauser will inform you of the benefits and drawbacks of each.

Pocket Money/Other Expenses

• How much money do you need each week to survive?

• This may be something you come back to after your budget is completed, or you can budget yourself a set amount from the start.

• Will you donate to charity? There may be a tax incentive to do so.

• Are there other expenses you anticipate. You know who you are and you know your habits.

Property Taxes• You only pay this if you own property (a home).• The tax number can be found on the slide of the

home you purchased.• If you rented an apartment, there is no property

tax for you to pay.• Don’t be discouraged from buying a home simply

because of the property taxes. First, you own an asset that typically will gain value for you and second you may be eligible for both an income tax and a property tax discount. Talk to Mr. Glashauser after your entire budget is complete.

Home Owner’s Association Fee

• Some neighborhoods, like Radisson, charge a fee to live in the neighborhood. The fee goes to the upkeep of the neighborhood’s parks, pools, rules, etc.

• If you want to live in a neighborhood such as this the costs can range from $25 to $1000 a year.

• Not all neighborhoods have these fees, be sure to check before you purchase a home.

Home Owner’s/ Renter’s Insurance

• If you own a home it is law that you also have home owner’s insurance on the home.

• If you rent an apartment you have the choice to either have or not have insurance.

• These insurances cover your personal losses in case of theft, fire, flood etc. Remember you don’t know when a pipe will burst, a roof will leak etc.

• The average cost of Home Insurance in CNY right now is between $497-$672. Your cost will be $584.50/yr or $11.24/wk.

• The average cost of Renter Insurance in CNY right now is between $100-$250. Your cost will be $175/yr or $3.37/wk.

• Remember you will be allowed to shop around after your budget is complete.

Home Maintenance/Repairs• Owning a home comes with a responsibility of

upkeep. Remember it is an asset you purchased and you want that asset to increase in value.

• The rule of thumb is to set 1% of the value of your home aside each year in order to cover upkeep. EX $100,000 home means $1000/yr or $19.23/wk.

• This is your decision, but remember the older the house, the higher the probability for trouble.

• As a renter these costs should be included in your rent. It may be wise to put aside $52/yr or $1/wk for a just in case incident to your apartment.

New Furniture/Appliances• You are going to need a place to sleep, sit, eat, etc. If

you have a home refrigerators, washers, and dryers all become factors too.

• Research from CNY suggests homeowners pay about $125 a month on average for these items. This is $28.85/wk. Sure you don’t spend that every week, but when you do spend it is in large sums.

• For renters it is about $75/mo. or $17.31/wk.• Again you will be allowed to shop around after your

initial budget is complete. If you can think of any other expenses you may want to identify that in the other category under home.

Utility Expenses

• Gas and Electric Combined– Single person $175/mo. or $40.38/wk– Married w/child $200/mo. or $46.15/wk

• Water– Single person $540/yr. or $10.38/wk– Married w/child $720/yr. or $13.85/wk

• Internet– Highest Speed $65/mo. or $15/wk.– Medium Speed $40/mo. or $9.23/wk.– Dial up Speed $11/mo. or $2.52/wk.

• Television– Full Cable/Satellite Package (HBO etc.) $135/mo. Or $31.15/wk.– Expanded Basic Cable Package $65/mo. Or $15/wk.– Basic Cable Package $22/mo. Or $5.08/wk.– Netflix only Package $8.99/mo. Or $2.07/wk.

• Telephone– Home Phone no long distance $20/mo. Or $4.62/wk.– Home Phone w/ long distance $35/mo. Or $8.07/wk.– Basic Cell Phone 450 minutes and unlimited text $60/mo. Or $13.85/wk.– Basic Cell Phone family plan (2 phones) $110/mo. Or $25.38/wk.– Smartphone $110/mo. Or $25.38/wk.– Smartphone family plan (2 phones) $165/mo. Or $38.08/wk.

• Other Expenses that may occur should be accounted for in last box.

Education Expenses• School taxes are only paid by property (home) owners. We already accounted for them in your overall

property taxes. Just be aware that when you own a home you actually receive 2 bills. One from the town and one from the school.

• Student Loans– Level 1 Income No Student Loan– Level 2 Income $50/wk. $216.67/mo.– Level 3 Income $60/wk. $260/mo.– Level 4 Income $70/wk. $303.33/mo.– Level 5 Income $80/wk. $346.67/mo.– Level 6 Income $100/wk. $433.33/mo.

• Childcare– Full time childcare/preschool $11,180/yr. Or $215/wk.– 1/2 time childcare/preschool $5,590/yr. Or $107.50/wk.– Occasional childcare/preschool $3500/yr. Or $67.31/wk.– Occasional night our babysitter $1300/yr. Or $25/wk.

• Kids clothing has been found to average about 6% of total income.– EX. $75,000 salary x .06 = $4,000/yr. Or $86.54/wk.

• Youth sports, music, dance etc. can cost anywhere from 1% - 10% of your income. Determine the activity your child will participate in, and give a fair estimate. The calculation is similar to the Kids Clothing above. Ask Mr. Glashauser if you are unsure.

• You and your family are going to want to take an occasional vacation for recreation, education or otherwise. – Single Person average vacation expenses $1000/yr. Or $19.23/wk– Married with child average vacation expenses $1600/yr. Or $30.77/wk.

• Any other education like expenses should go in last box

Health• You are now required by law to have health insurance.

– Average premium single person $370/mo. Or $85.38/wk.– Average premium family $875/mo. Or $201.92/wk.– Fee if declining health insurance. 2.5% of income or $695 per adult and $347.50 under 18. Whichever

is cheaper.• Life Insurance is not required by law, but it is a nice protection for your family in case of your untimely

death.– A policy that covers your whole life and pays out $250,000 costs $188.36/mo. Or $43.47/wk.– A policy that covers your for 20 years and pays out $250,000 costs $23.90/mo. Or $5.52/wk.

• A conservative guess for the cost of doctors visits each year ranges from $150-$1500/yr. Make a estimated guess.

• Dental insurance is not required by law, however good dental hygiene is important to good health. The following are estimates for annual out of pocket dental expenses.– Single person $370/yr. or $7.12/wk.– Family $500/yr. or $9.62/wk.

• Americans spent $898/person on medicine in 2013 or $17.27/wk. Make a reasonable estimate as to how much you might spend on medicine.

• If anyone in your group has glasses you must include $5/wk. for eye coverage.• Pet expenditures (I know it states vet on the budget, but for simplicity all pet costs can go here)

– Single $405/yr. Or $7.79/wk.– Family $536/yr. Or $10.31/wk.

• Grooming costs vary widely based on personal preference. Everyone needs a trim, but tanning, manis, pedis are your choice. The basic cost here is $100/yr or $1.92/wk. That only covers a basic, cheap haircut.

Shopping

• Groceries costs can vary widely. I used averages from the USDA, and it includes the fruit and veggie category and baby supplies.– Single $70.50/wk– Married with kid $143.60/wk

• Studies show that families spend about 3.8% of income on clothes.– EX. $50,000 x .038 = $1900/yr or $36.54/wk

• Cosmetics/toiletries average about $200/yr or $3.85/wk. If you wear more makeup or use a ton of toilet paper, account for it.

• Birthdays and Holidays can be so expensive. In 2014 the average spent on gifts was $459.87 or $8.84/wk.

• Any unaccounted for costs go in last box under shopping. For example vitamins, or butcher beef.

Transport• If you have a car you need insurance.

– Single $98/mo. Or $22.62/wk.– Married $120/mo. Or $27.69/wk.

• Based on the car you own this is the annual cost of maintenance and gas combined. Divide by 52 for weekly cost.

Based on 15,000 miles Small Sedan Medium Sedan Large Sedan Sedan Average Minivan SUV (4WD)

Annual Total Cost $6,729 $8,716 $10,649 $8,698 $9,372 $10,624

• To drive your car you need a license and need to register your car. • License fee is $64.50• Registration fee is $50• The weekly cost for these is $1/wk.

• If you travel the Thruway you need to account for those fees.• If you plan on using Centro it is $2.00 for a one way ticket or $108 for a monthly pass.• Account for other transport expenses in last box.

Entertainment/Eating Out• For this last page you can put some estimates in for the

things you like to do. Be fair and be sure to treat yourself. It is your money after all, you should be able to reap some enjoyment from it. The following web site may be helpful to you for prices, but you know how much this stuff costs. Be fair.

• http://www.numbeo.com/cost-of-living/city_result.jsp?country=United+States&city=Syracuse%2C+NY

• Once you complete this whole budget now you can go back to the beginning and try and get cash savings on your purchases or eliminate purchases altogether.

Helpful Web Sites• http://cnyrealtor.com/ (Housing)• http://www.apartmentfinder.com/New-York/Syracuse-Apartments (Apartments)• https://www.driversvillage.com/ (Cars)• http://www.efile.com/tax-service/tax-calculator/tax-brackets/ (Federal Tax)• http://www.tax-brackets.org/newyorktaxtable (State Tax)• https://smartasset.com/taxes/new-york-tax-calculator#FXPfHcLJRJ (State Tax)• https://www.ehealthinsurance.com/resource-center/ehealth-price-index (Health Ins.)• http://www.bls.gov/opub/btn/volume-2/spending-on-pets.htm (pet expenditures)• http://www.cnpp.usda.gov/USDAFoodPlansCostofFood/reports (grocieries)• http://www.numbeo.com/cost-of-living/city_result.jsp?country=United+States&city=Syracuse%2C+NY (Cost of Living, Syracuse)

• http://www.valuepenguin.com/average-cost-of-insurance (all insurance)

Tax Savings

• If you are single $6,300 of salary is tax free under the federal standard deduction rules.

• If you are married $12,600 of salary is tax free under the federal standard deduction rules.

• If you are single $7,900 of salary is tax free under the NYS standard deduction rules.

• If you are married with 1 kid $16,850 of salary is tax free under the NYS standard deduction rules.