Economics Homework Help

For this assignment, you will create a budget that shows your total monthly income, expenses, and expense categories. If you don’t have a job, you will assume the earnings of a typical minimum wage earner. You need to use a spreadsheet tool like Microsoft Excel or Google Sheets to create your budget, if you don’t have access to either of these tools there are others you can use. Remember to save your budget as a PDF before submitting it for grading. The option to save as a PDF is available in the ‘print’ or ‘save as’ functionality.

Optional Resource: For help with spreadsheet ideas and formulas, see the following website: https://clubthrifty.com/how-to-make-a-budget-in-ex…

There are 4 steps to this assignment. The instructions are as follows:

Step 1: Income

If you have a job, take a look at your most recent pay stub (that reflects 2 weeks of pay). You will double this for your total income for the month.

Then, input your gross income as well as your net earnings (net income after taxes and payroll deductions) in a table that you create. Again, remember that this should reflect a month of gross income and net earnings.

If you don’t have a job, assume you earn the minimum wage in your state and multiply that wage by 160 (for a typical 40-hrs a week wage in one month). Proceed as instructed in the previous paragraph.

Step 2: Expenses

Use this website–20 Average Monthly Expenses to Include in Your Budget–to create a list of typical expenses and how much they will cost you each month. In the same table from step 1, add between 10-15 expenses of your choice and their associated costs.

In your table/spreadsheet, subtract all expenses from your total net income. At the bottom of your table, include a row that shows your total income after monthly expenses.

Step 3: Pie Chart

Create a pie chart that reflects your spending on expenses and distributes it toward 3-4 categories (e.g. housing, transportation, food, etc.). Your pie chart allocations should add up to 100%. A key to the chart should be included. See this website for an example: https://www.mathsisfun.com/data/pie-charts.html

Step 4: On Reflection

Write a one-paragraph reflection on your budget. Are there any changes that you need to make in order to budget properly and set aside money every month for savings and emergencies? Is there a category in your pie chart to which too much of your income is allocated toward? Do you think it would be challenging to stick to this budget – why, or why not?

Submission: You should include all parts above in one document as a PDF.