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Economics (Personal Finance) Resource; page 1

KC 4 Social Studies © 2008 Kent ISD

Budget Project Example

Part 1OrthodontistCareers in dentistry are extremely rewarding. Orthodontists are not only the part of the largest group of dentists, but they also are some of the most highly-paid individuals out there. Orthodontists have more work to do then the average dentist. They mostly straighten teeth by using brace, retainers, and other oral appliances. Orthodontists also examine x-rays, first broken teeth, and instruct patients on how to brush properly and choose a healthy diet to prevent cavities. In some cases, orthodontists use a variety of tools in order to perform these tasks. Some examples of these tools include drills, oral mirrors, probes, forceps, and x-ray machines. they usually wear masks, safety glasses, and latex gloves to protect the patient from infection and themselves from other health issues. Most orthodon-tists work 35-40 hours per week. Many continue working part-time far after the average retirement age, There is a lot of education needed to become an orthodontist. Dental schools require their students to have at least two years of college before entering dental school, although many students receive their bachelor's degree before entering dental school. Dental school is usually four years long. Some dental students work for dentists or orthodontists to understand how the office runs and the day-to-day expectation before opening their own practice. There are many qualities that an orthodontist should possess. They should have a good memory, great manual skills, and excellent judgment. They also should be good with people and possess great communication skills. In high school, students should take courses in chemistry, health, mathematics, physics, and biology if they are at all interested in this type of career. When choosing a career, orthodontics is one of the best fields to pick. It is rewarding in so many different ways and is sure to lead you down a successful pathway in life.

Part 2

Monthly Income: $1,366.67Monthly Federal Income Tax: $4,510.00 (33%)Monthly State Income Tax: $533.00Monthly FICA Tax: $1045.50Total Monthly Taxes: $6,088.50Monthly Disposable Income: $7,578.17

Part 3

Amount in Savings: $779.16

Part 4

Interest: $1.62 (2.5%)Total Amount in Savings: $780.78



Part 5

Total Monthly Income: $13, 666.67Disposable Income: $7,578.17Interest Earned: $1.62 per monthMonthly Taxes: Federal Income Tax: $4,510.00 State Income Tax: $533.00 FICA Tax: $1,045.50 Total Monthly Taxes: $6,088.50Amount Saved Per Month: $779.16Total in Savings After Interest: $780.78Total Expenses: $6,799.01

Part 6Car Payment: $1,361.25Car Insurance: 131.58Mortgage Payment: $3,319.44Electricity: $98.00Clothing: 436.00Gasoline: $142.50Car Repairs/Oil Changes: $5.00Home Owner's Insurance: $151.92Food: $413.43Gas/Heat: $258.43Entertainment (Total): $181.99Phone Bill: $113.81

Part 7Runner's World Magazine: $1.67Shoes: $138.00Cable TV: $19.99

Part 8See attached advertisements and bills

Budget Project Example (continued)



Part 9Final presentation of project

Part 10

By doing this budget project, I learned a lot on how a budget works and how to maintain a bal-anced budget. I did not realize some expenses were so pricey, especially mortgage payments, with most of them being well over $100.00. I was most surprised by the amount of money taken out for taxes. My original income before taxes was $13,666.67 and after taxes was $7,578.17. That almost half of my income taken away! I was fortunate to have a job with a high-paying salary, so I was not down to the past penny of my income and I could purchase luxurious items. I can see how diffi cult it would be for a person or family to have a low monthly income. It is a lot easier for more wealthy people to maintain a balanced budget as compared to those with low monthly incomes. I would have been a lot wiser with my money if I had a lower salary. If I had a greater salary, I would have kept my budget pretty much the same, but I would have bought more clothing, a greater-priced home and maybe purchased a vacation.

After doing this project, I can now see how important it is for people to create a budget. If the family even spent $100.00 over the budgeted price of a certain object, they could sacrifi ce dinner and heat for the whole next month or until they can pay back bills when they receive their next paycheck. I really learned a lot from this project and I enjoyed what I learned. When I am older and have a career and a family to support, I will never think twice about whether or not to have a bud-get. It is clear to me that making a budget will prevent debt and help me live the successful life I have always dreamed of.


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