ObjectivesBy successfully completing this assignment, students will be able toidentify their own personal spending habits,recognize the concept of opportunity costs and trade offs, andeffectively compile and assess the components of a good financial plan.InstructionsStudents are to use text and Excel spreadsheets to prepare a personal household budget based on research, lessons learned in the course, and personal demographics$/$financial assumptions.In Excel they mustdevelop a monthly budget covering current and one future year with income and expensesBudget components should include any relevant revenues, assets, expenses, taxes and savingsIn Word, they mustIntroduce the assumptions and demographics used in the budgetProvide a rationale for each component selected and decision madePropose how to achieve an optimal budget that balances income with lifestyle and personal final goalsPropose at least two ways to a reach a greater surplusThere is no minimum length to this assignment; it must simply be thorough and complete.EvaluationActivity$/$Competencies DemonstratedGradeCritical Analysis and Research$/65$a$.$ Household assumptions clearly identified$/10$b$.$ Budget components selected justified$/10$c$.$ Spreadsheet organization logical and calculations correct$/20$d$.$ Depth of analysis $($for both a balanced budget, and a surplus$)/25$Communication$/25$a$.$ Uses language and media clearly and effectively$/10$b$.$ Information organized intelligently and holistically$/10$c$.$ Proper introduction and conclusion$/5$Attention to Detail$/10$a$.$ APA formatting of text and references $($in Word doc$)/5$b$.$ Spelling and grammar$/5$Total$/100$