- a balanced 6-month budget
- a retirement projection worksheet
- the process and calculations for the home improvement project (students may need to research to find cost of materials)
- your individual final reflection
Isabelle and Dan two incomes, three children Isabelle and Dan are both in their early 30s. They have been married for 10 years. Isabelle works part time and Dan works full time. They own a small home and are still making payments on one of their cars. Their home has a small apartment in the basement that they rent out for some additional income. Due to a period of unemployment, they accrued some credit card debt and they are still paying off Dan's student loans. They have a small emergency savings reserve but not quite enough for 3 months of expenses. They want to finish the other half of their basement with a bedroom and bathroom for the growing family. They also want to start college funds for the children. . Vital Stats Mortgage payments $1,513 interest rate of 3.92% 25 years left of a 30-year loan) They have 2 cars; one paid for one still making payments total monthly payment for car payment and insurance for both is $390. o They spend $150 on gas each month They are renting their small basement apartment for $550 per month. Utilities cost $389 each month (gas, electricity, sewer, water, internet) They spend $210 on a shared family cell phone plan Isabelle has a gym membership that costs $89 per month They have $9,348 in credit card debt; 18.7% APR. They pay $150 per month (the minimum payment) The family mostly eats in and they pay $850 on groceries each month. Dan earns $72,420 pre-tax salary and Isabelle works part time (30 hours per week) earning $31.70 per hour; 20% tax rate They contribute 5% of Dan's annual income to his 401(k). His employer matches 75% of their contribution. Their charitable contributions (including tithing) cost 10.5% of their monthly income Dan's student loans are $7,740 at a 6% interest rate. They are paying $220 per month TL- 1:1: --- Their charitable contributions (including tithing) cost 10.5% of their monthly income Dan's student loans are $7,740 at a 6% interest rate. They are paying $220 per month They need an additional $2,200 more to reach their emergency fund goal Health insurance is subsidized by Dan's company and his share is $424 per month. Home Improvement Plan Because their children are getting older Isabelle and Dan want to refinish the basement which includes two bedrooms and a bathroom. They will update the rooms with paint, tile for the bathroom, and carpet for two bedrooms. (see attached floorplan) Variable Expenses Some of their variable expenses over the last few months Month 1 Month 2 School Activities $225 $75 Manicure SO $35 Haircuts $25 $25 School Supplies $398 Dentist $15 $235 Car Maintenance $31 SO Month 3 $90 SO $75 $27 $0 $129 Month 4 SO $35 $25 $67 $30 SO $142 Home Improvement Plan i BATH BATH 6 x 3.5' BEDROOM 11' KITCHEN DINING BASEMENT 15' 18 STUDIO APARTMENT 8 BEDROOM 12 LIVING CLOSET 9 ENTRY O Isabelle and Dan two incomes, three children Isabelle and Dan are both in their early 30s. They have been married for 10 years. Isabelle works part time and Dan works full time. They own a small home and are still making payments on one of their cars. Their home has a small apartment in the basement that they rent out for some additional income. Due to a period of unemployment, they accrued some credit card debt and they are still paying off Dan's student loans. They have a small emergency savings reserve but not quite enough for 3 months of expenses. They want to finish the other half of their basement with a bedroom and bathroom for the growing family. They also want to start college funds for the children. . Vital Stats Mortgage payments $1,513 interest rate of 3.92% 25 years left of a 30-year loan) They have 2 cars; one paid for one still making payments total monthly payment for car payment and insurance for both is $390. o They spend $150 on gas each month They are renting their small basement apartment for $550 per month. Utilities cost $389 each month (gas, electricity, sewer, water, internet) They spend $210 on a shared family cell phone plan Isabelle has a gym membership that costs $89 per month They have $9,348 in credit card debt; 18.7% APR. They pay $150 per month (the minimum payment) The family mostly eats in and they pay $850 on groceries each month. Dan earns $72,420 pre-tax salary and Isabelle works part time (30 hours per week) earning $31.70 per hour; 20% tax rate They contribute 5% of Dan's annual income to his 401(k). His employer matches 75% of their contribution. Their charitable contributions (including tithing) cost 10.5% of their monthly income Dan's student loans are $7,740 at a 6% interest rate. They are paying $220 per month TL- 1:1: --- Their charitable contributions (including tithing) cost 10.5% of their monthly income Dan's student loans are $7,740 at a 6% interest rate. They are paying $220 per month They need an additional $2,200 more to reach their emergency fund goal Health insurance is subsidized by Dan's company and his share is $424 per month. Home Improvement Plan Because their children are getting older Isabelle and Dan want to refinish the basement which includes two bedrooms and a bathroom. They will update the rooms with paint, tile for the bathroom, and carpet for two bedrooms. (see attached floorplan) Variable Expenses Some of their variable expenses over the last few months Month 1 Month 2 School Activities $225 $75 Manicure SO $35 Haircuts $25 $25 School Supplies $398 Dentist $15 $235 Car Maintenance $31 SO Month 3 $90 SO $75 $27 $0 $129 Month 4 SO $35 $25 $67 $30 SO $142 Home Improvement Plan i BATH BATH 6 x 3.5' BEDROOM 11' KITCHEN DINING BASEMENT 15' 18 STUDIO APARTMENT 8 BEDROOM 12 LIVING CLOSET 9 ENTRY O
