A simulation of budgeting for grades 9-12 (3-5 players) Reach as many savings goals as possible without going over budget.

Transcription

1 A simulation of budgeting for grades 9-12 (3-5 players) Scott Dixon Life Goal Reach as many savings goals as possible without going over budget. Getting Ready Draw a career card Prepare Expense Ranges (How much can you afford?) Make fixed expense commitments (House, Car, Loans) Set Savings Goals o Emergency Savings o PYF goals (your goals in Life) Prepare your ideal budget Open your Savings Accounts (Excel Spreadsheet) Game Play Place your car on START and roll the die. EARN your salary at the START of each month Follow the directions for each colored space BLUE Invest, Insure or free space ORANGE Expense for you, income for others Take 1-3 months to pay RED Unexpected Expense In addition to your normal budget Take 1-3 months to pay GREEN Earn passive or portfolio income STOP at the end of each month. BALANCE your budget Pass the AUDIT before continuing

2 Rule Book 1. Career Choice & Standards of Living 2. Expense Ranges 3. Fixed Expense Commitments 4. Goals 5. Budgets 6. Savings Accounts 7. Winning the Game

3 Detailed Instructions Career Choice & Standards of Living At the beginning of the game you will randomly select a career. You may advance your career by carefully choosing your goals. Your career choice determines a standard of living. 1. Roll one die to determine order. (Highest chooses first, lowest chooses last) 2. Randomly draw a career card. STANDARDS OF LIVING Poor o Cannot afford a home, apartment living only o Used cars only o No College loans. Other debt is $75 per month o Emergency Savings goal is 6 weeks gross income Average o Often rent apartments, but small or average homes are an option o Good condition used or new cars o Student loans are $100 per month and other debt is $100 per month. o Emergency Savings goal is 6 weeks gross income Middle Class o Usually owns a house, but might choose a large apartment o Good condition used, new or luxury cars o Student Loans = $300 per month and other debt is $300 per month o Emergency Savings goal is 3 months gross income Rich o Always owns a large home, never an apartment or small house o Any new or luxury car o Student Loans = $600 per month and other debt is $600 per month o Emergency Savings goal is 6 months gross income

4 Expense Ranges Use your annual gross income to determine your tax rate. Use your monthly net income to determine appropriate expenses. Tax Bracket Under $10,000 10% $10,001-$30,000 15% $30,001-$90,000 20% $90,001 and more 30% Expense Ranges Expenses are based on your NET income Housing 20-30% Transportation 06-20% Loans 05-20% PYF Savings 05-10% or more Utilities/Basic Phone 04-07% Food 15-20% Medical Care 02-08% Child Care 06-12% Clothing 02-04% Entertain./Data/Misc 00-10%

5 Fixed Expense Commitments You must select fixed expenses based on your standard of living. Once you have committed, this expense will not change. Housing Choices (all amounts are monthly) Apartments Small - below average condition $450 Small - average condition $550 Small luxury $850 Large average condition $700 Large luxury $1000 Homes Small average condition $675 Mid Size average condition $850 Mid Size new build $1000 Large average condition $1500 Large new build $1975 Large luxury $2500 Transportation Choices (all amounts are monthly) Used Cars Barely working and rusted Saturn $100 Average condition 1995 Chevy $200 Good condition 2003 Honda $250 New Cars Chevy Cruise $350 Toyota Prius $500 Lexus GX $750 BMW M3 Coupe $950

6 Goals You must determine your emergency savings goal and choose PYF goals. Reaching these goals is the key to winning the game. EMERGENCY SAVINGS Your emergency savings goal is stated on your career card PAY YOURSELF FIRST (PYF) GOALS Choose as many goals as you wish. Educational Goals Job Training Level 1 Cost: Save $600 for training class If reached: Earn a $3 per hour raise for remainder of game Job Training Level 2 Cost: Save $1,100 for training class If reached: Earn a $5 per h our raise for remainder of game Associates Degree Cost: If reached: Save $1,600 for the first semester Increase pay by 10% for remainder of game Bachelors Degree (must already have associates degree) Cost: Save $2,000 for the first semester If reached: Increase pay by 20% for remainder of game Masters Degree (must already have bachelor s degree) Cost: Save $5,000 for the first semester If reached: Increase pay by 30% for remainder of game

7 Housing Goals You are saving for the down payment. If you reach the goal, replace your housing expense with the new amount. Apartments Down Monthy cost Small - average condition $550 $550 Small luxury $1000 $850 Large average condition $1200 $700 Large luxury $1800 $1000 Homes Down Monthly cost Small average cond. $3000 $675 Mid Size average cond. $5000 $850 Mid Size new build $10,000 $1000 Large average cond. $15,000 $1500 Large new build $20,000 $1975 Large luxury $30,000 $2500 Transportation Goals You are saving for the down payment. If you reach the goal, replace your transportation expense with the new amount. Used Cars Down Monthly cost Average condition 1995 Chevy $500 $200 Good condition 2003 Honda $1000 $250 New Cars Chevy $1500 $350 Toyota $2000 $500 Lexus $3000 $750 BMW $5000 $950 Fun and Games Goals You are saving for the amount listed. Have fun if you reach these goals. iphone $250 ipad $450 Laptop Computer $550 Shopping Spree $750 HDTV $1100 Weekend Getaway $1500 Disney Vacation $3000 Vacation Cruise $5000 Worldwide Tour $11,500