Personal Budget Project – Student Notes & Guide
Overview
This project demonstrates how to manage personal finances after graduation through a structured
budget and reflection. It consists of two parts:
1. Excel Budget Creation (Part 1)
2. Budget Evaluation and Analysis Paper (Part 2)
Part 1 – Creating Your Excel Budget
Purpose: To estimate post-graduation income, taxes, and living expenses realistically.
Key Steps:
1. Estimate Income:
o Research your entry-level salary (use sources like Glassdoor, Indeed, BLS.gov).
o Use the lower end of salary range unless you have experience.
o Document source URLs in Column I of the spreadsheet.
2. Calculate Taxes:
o Include Social Security (6.2%), Medicare (1.45%), and state/federal income taxes.
o Reference IRS tax brackets to estimate your effective and marginal rates.
o If contributing to a 401(k) or IRA, adjust your taxable income accordingly.
3. Estimate Monthly Expenses:
o Include rent, utilities, groceries, transportation, insurance, entertainment, savings,
and “other” expenses.
o Each dollar should have a purpose — balance should equal zero.
4. Document Key Assumptions:
o Use the notes column for sources and reasoning (rent estimates, car payment,
insurance premiums, etc.).
Part 2 – Evaluating Your Budget (Written Paper, 1,250–1,500 words)
Introduction
Briefly describe your career goal, target city, and expected income.
Explain the purpose of the paper — applying financial principles to create a personal
plan.
Overview
This project demonstrates how to manage personal finances after graduation through a structured
budget and reflection. It consists of two parts:
1. Excel Budget Creation (Part 1)
2. Budget Evaluation and Analysis Paper (Part 2)
Part 1 – Creating Your Excel Budget
Purpose: To estimate post-graduation income, taxes, and living expenses realistically.
Key Steps:
1. Estimate Income:
o Research your entry-level salary (use sources like Glassdoor, Indeed, BLS.gov).
o Use the lower end of salary range unless you have experience.
o Document source URLs in Column I of the spreadsheet.
2. Calculate Taxes:
o Include Social Security (6.2%), Medicare (1.45%), and state/federal income taxes.
o Reference IRS tax brackets to estimate your effective and marginal rates.
o If contributing to a 401(k) or IRA, adjust your taxable income accordingly.
3. Estimate Monthly Expenses:
o Include rent, utilities, groceries, transportation, insurance, entertainment, savings,
and “other” expenses.
o Each dollar should have a purpose — balance should equal zero.
4. Document Key Assumptions:
o Use the notes column for sources and reasoning (rent estimates, car payment,
insurance premiums, etc.).
Part 2 – Evaluating Your Budget (Written Paper, 1,250–1,500 words)
Introduction
Briefly describe your career goal, target city, and expected income.
Explain the purpose of the paper — applying financial principles to create a personal
plan.
