Reality Check Project
Mrs. Jefferson - Room 3
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  • Step 1
  • Step 2
  • Step 3
  • Step 4
  • Step 5

Reviewing Your Budget

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Time for a reality check!  At this point, you will need to trade budgets with your partner or another student.  Once you have someone else’s worksheet, you will need to do two things:
  • Double-check their calculations
  • Check with Mrs. Jefferson to see how realistic the budget is

Now, write a recommendation to the other student explaining how realistic their budget is, and make suggestions on any necessary changes.  Your writing doesn’t need to be very long, just 2-4 sentences to help them out.


Your Budget

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The next step is to set up your budget.  This will entail the following steps:

  • Figure out your monthly mortgage payment or rent amount and your monthly transportation cost.
  • Some budget experts recommend that a housing expense should be no more than 30% of your gross monthly income and that your transportation cost should be no more than 12% of your gross monthly income.
  • Decide if your net income will make it possible for you to afford your house and transportation.  If not, you will need to go back and find a home and transportation that you can afford.
  • Examine your budget to see how much money you should budget for the remainder of your household expenses.  Make sure to double-check your calculations.  Then enter those household expenses into your worksheet.


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