7 HUMANITIES
BUDGETING
#101
***Use the PPT: Budgeting***
NAME:
TEACHER:
1
Now that we have studied how entrepreneurs manage their
businesses, you will complete this task to identify how to manage
your own ‘business’ by building a budget.
Task:
You are to create a weekly budget based on a set income outlined in
the scenario below. You will need access to the internet to complete
this activity.
Scenario:
You have just finished university and are employed as a high school teacher at MGHS.
Your starting salary per year is $84,000.
You are paid each fortnight and receive $2000 after tax. This is how much actual money you get.
NOTE: Assume there are exactly four weeks in a month when completing calculations.
PART A: LIVING EXPENSES
Budget Expense 1: ACCOMMODATION
You will need to find a house or unit to live in with one of your friends in the Brisbane south area.
1. Access the Real Estate worksheet or search the Internet (do this at home for site access:
www.rentalhotline.com.au, www.realestate.com.au or www.domain.com.au )
2. Select an accommodation option that you think would be suitable for 2 people to afford.
Screenshot the rental advertisement and attach it here.
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3. Record the proportion of rent you will pay each week in the box below.
(Remember you only need to pay half of the rent since you are living with one other person.)
Budget Expense 2: ELECTRICITY/GAS BILL AND PHONE BILL
You will also need to pay bills for electricity and/or gas and phone/internet.
Some of these bills you will only pay half of as you share the expense with your flatmate.
Home internet cost is $80 per month (4 weeks)
Personal mobile phone is $60 per month (4 weeks)
Electricity is $360 per quarter (3 months)
Budget Expense 3: TRANSPORT
At this stage you will be relying on using the public bus system to get to work ($0.50 per trip).
Allow $5 per week for public transport.
Budget Expense 4: PERSONAL SPENDING
After investigating the costs for personal spending, allocate an approximate amount on each
item per week in the table below.
ITEM $ AMOUNT EACH WEEK
Netflix / Disney Plus and other
subscriptions
Clothes and accessories
Eating out / Take away /
Tuckshop
Clash royale battle pass (and
other online spending)
Coffee / Zarraffas
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Budget Expense 5: GROCERY SHOPPING
Investigate the cost of groceries per week. Your grocery list MUST include the
following items:
Toiletries
Cleaning products
Fruit and vegetables
Treats and snacks (chocolate, muesli bars, yoghurt etc)
Dinner items (enough for 7 nights)
Lunch items (enough for 7 days)
Breakfast items (enough for 7 days)
HOWEVER, before you go shopping for your groceries you need to complete a grocery list and
show to your teacher. Write / type your list below:
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Go to an online store such as www.woolworths.com.au.
Choose your groceries.
The cost of the items will be calculated as you place each item into your basket.
Screen shot the final total/cost of your shopping and attach it here:
Now in the space provided below record how much you spend a week on groceries.
Record your total groceries for the week in the box below.
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COMPLETING YOUR BUDGET
Using the budget template below, enter your income and expense for the week and calculate your
total income minus your total expense.
WEEKLY BUDGET – Part A
INCOME
Weekly wages after tax $
TOTAL INCOME $
EXPENSES
Rent $
Electricity/Gas $
Phone $
Transport (bus) $
Netflix / Disney Plus and other subs $
Clothes and accessories $
Battle Pass / Online spending $
Eating Out / Tuckshop / HJs $
Coffee / Zarrafas $
Groceries $
TOTAL EXPENSES $
TOTAL INCOME MINUS TOTAL $
EXPENSE
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PART B – HOLIDAYS OR CAR
You have decided to go on a holiday to Cairns and the Great Barrier Reef for one week at the
beginning of December. In order to enjoy your holiday you will have to put some money away each
week. Assume that you commence saving from the beginning of May. You will be flying to Cairns
from Brisbane airport.
Investigate and record the following information for your holiday:
1. Name and address of accommodation in Cairns. Include phone, email and web address.
2. Cost of the accommodation for the week.
3. Amount of spending money you will put aside for food, shopping, transport and miscellaneous
holiday items.
4. Name two attractions or tours you will undertake as part of your holiday and find the cost (cannot
be free activities)
5. The cost of the return airfare.
6. Total cost of your holiday (accommodation + spending money + airfare + attraction or tour.)
7. Identify how many weeks you will need to save (give the start and finish dates for saving.)
8. Identify how much per week you will need to save so you have enough money available to go on
your holiday.
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AMEND YOUR BUDGET TO ALLOW FOR A HOLIDAY
Using the budget template below, amend your budget from Part A to allow for a holiday and calculate
your total income minus your total expense.
WEEKLY BUDGET (Holiday)
INCOME
Weekly wages after tax $
TOTAL INCOME $
EXPENSES
Rent $
Electricity/Gas $
Phone $
Transport (bus) $
Netflix / Disney Plus and other subs $
Clothes and accessories $
Battle Pass / Online spending $
Eating Out / Tuckshop / HJs $
Coffee / Zarrafas $
Groceries $
Holiday savings $
TOTAL EXPENSES $
TOTAL INCOME MINUS TOTAL $
EXPENSE
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You decide to take out a loan to buy a car. Your budget is $10 000.
TASK
1. Search the newspapers or online and find a car you would like to purchase with your budget. An
example of a website is www.carsales.com.au . Attach a copy of the car advertisement to your
assignment.
2. You have borrowed the $10000 from a bank and wish to pay your car off in three years so you will
need to allow $330 per month to repay your loan.
Record the weekly amount here for car repayments:
3. Investigate how much it would cost per year to insure your vehicle (assume you are 21 years of
age). Divide by 52 to work out how much your insurance is per week.
You will need to research this by phoning an insurance agency, looking up a website of an
insurance agency or asking someone at home who is responsible for paying car insurance. An
example of a car insurance agency is RACQ.
Record the amount here:
4. Investigate how much per year it will cost you to register your vehicle. Divide by 52 to work out
how much your registration is per week.
Once again, you will need to research this by either phoning the Queensland Department of
transport, looking up the Department of Transport website or asking someone at home who is
responsible for paying car registration.
Record the amount here:
5. Ask the person responsible for paying for petrol and car maintenance in your home to help you
estimate an appropriate amount you will need to spend each week.
Record the amount here:
6. You are required to amend your budget to include:
o the repayments on your new car
o insurance
o registration
o petrol and maintenance
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Assume you are no longer saving to go on a holiday. Remember, you do not have to pay a weekly
bus fare as you will be driving to work and have free parking!
WEEKLY BUDGET (Car)
INCOME
Weekly wages after tax $
TOTAL INCOME $
EXPENSES
Rent $
Electricity/Gas $
Phone $
Car repayments $
Car insurance $
Car registration $
Petrol and Maintenance $
Netflix / Disney Plus and other subs $
Clothes and accessories $
Battle Pass / Online spending $
Eating Out / Tuckshop / HJs $
Coffee / Zarrafas $
Groceries $
TOTAL EXPENSES $
TOTAL INCOME MINUS TOTAL $
EXPENSE
10
Using sentences and paragraphs analyse the importance of being financially independent.
Include in your analysis:
Explain the importance of short and long term planning to ensure financial independence
Identify and explain different strategies that may be used to ensure you can afford your holiday / car
purchase. For example, did you have to cut back in other areas of your spending so you could afford
the holiday / did you have to find other sources of income?
How the purchase of your holiday / new car has affected your budget.
Describe the responsibilities of you, as a consumer to ensure sound financial decision making
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