BBI Money Unit

By Joe Bennett,2014-06-28 20:46
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BBI Money Unit ...

    BBI Personal Finance Assignment

    For this unit, you will create a report detailing a monthly budget for the situation provided to you. This report will cover earning, spending, saving, investing, and borrowing money. The report must be bound (a staple is fine); it

    will not be accepted otherwise.

The report should include the following:

1. Cover Page, including:

    ? The name of this course Introduction to Business (BBI2O)

    ? The Report Title Personal Finance Assignment

    ? The Date

    ? Your Name

    ? A Picture about money or finances

    2. Table of Contents, type-written, listing each item and the page number

    3. A one to two-page type-written summary, in paragraph form, explaining:

    ? Your future financial situation:

    ? Your job and salary

    ? Your family situation

    ? Your original financial situation

    ? Your goals and your plan to achieve your goal

    ? Your savings goals, including your minimum savings account balance and monthly contribution

    ? Your investment plan

    ? Your housing situation

    ? Your transportation plan

    ? Your food budget

4. Financial Goals Section

    5. Future budget

    6. Savings Plan

    7. Investment Plan

    8. Housing Plan including printouts

    9. Transportation plan

    10. Debt Plan

    11. Meal Plan and completed Grocery List




    Family Situation:



    Other Information:


What three goals do you have for your situation? List in order of priority and keep your credit and family

    situation in mind when planning.



    Plan and Timeframe:



    Plan and Timeframe:



    Plan and Timeframe:


    Monthly Budget

     Gross Salary $ 55,000

     Taxes $ 19,250

     Net Salary $ 35,750

     Monthly Net Salary $ 2,979

     Interest Income $ 9.71

     Total Monthly Income $ 2,989

     Fixed Spending

     RRSP $ 200

     Investments $ 50

     Mortgage $ 800

     Condo Fee $ 250

     Car Loan $ 200

     Student Loan $ 150

     Credit Card Payment $ 100

     Car Insurance $ 150

     Phone $ 50

     Cable and Internet $ 120

     Other $ -

     Total Fixed Expenses $ 2,070

     Variable Expenses

     Food $ 250

     Clothing $ 50

     Entertainment $ 50

     Gas $ 150

     Personal Care $ 40

     Dining Out $ 50

     Other $ -

     Total Variable Expenses $ 590

     Total Expenses $ 2,660

     Savings $ 329


1. In the future, what is the minimum balance that you want to carry in your savings account? Include a

    rationale for the amount.

2. Calculate and compare the interest on your savings account:

    ? Go to

    ? Click on ‘Investment Savings Account’.

    ? Enter your answer to #1 above in the ‘My initial savings are’ field.

    ? Enter a monthly contribution rate in the ‘I will contribute’ field.

    ? Change the frequency from ‘every second week’ to ‘every month’.

The result below your bar graph is your annual interest income. (choose only the first year) Enter it

    here: ___________

Divide your annual interest income by 12 to find your monthly interest. Enter the result here:


Enter your monthly interest in your budget.

    In the future, how much money will you invest in your RRSPs every month? Explain. Include this amount as planned spending in your budget.


How risky an investor are you? (Low risk, moderate risk, high risk)

Give reasons for your risk choice, given your financial situation.

Create a pie chart showing the composition of your investments. You must include a minimum of three

    investment options.

Describe your investment plan

    Investment Type Reason Specific Investment

    Investment Type Reason Specific Investment

    Investment Type Reason Specific Investment


What are your housing requirements (size, location, etc.)?

What type of housing did you choose (rent/own, apartment/condo/house)

Find a listing for your preferred type of housing and include it in your report.

To find a house, go onto the Multiple Listing Service website:

    1. Go onto

    2. Search for a house by clicking on the map OR by typing in a key word (e.g., North York).

    3. Fill out the search criteria.

    4. Click ‘Search’.

    5. If there are no results, search again.

    6. Print the ad for your house.

Assume a down payment of 20%, so multiply your house price by 0.8. The result is your mortgage amount.

    7. Go to ING Direct and locate their mortgage payment calculator. Enter your information and choose

    a five-year fixed mortgage. Your payment frequency should be monthly.

    8. Enter the payment amount below.

The ‘Principal and Interest’ amount is your monthly mortgage payment.

Enter your monthly mortgage payment in your budget.

How long do you think it will take you to save enough money for your down payment?


Find an appropriate house or apartment to rent in Toronto and print the ad. Include the rent amount in your



What transportation needs do you have:

If you are purchasing a car, include the cost of the car payments, insurance, gas and repairs in your budget.

    If you are taking transit, include the cost of tokens and/or a metropass in your budget.

Car Loan

    1. Go online to one of the car manufacturer’s websites (e.g., Ford, Toyota, BMW) and select a car

    that you would like.

    2. Print off the car you have selected and make sure the price shows on your printout.

    3. To calculated your car loan, go to

    4. Enter the price of the car in the ‘Loan Amount’ field.

    5. Click ‘calculate’.


    Complete the meal plan and develop a grocery list for your meal plan.

    Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Breakfast Lunch Dinner Snacks


    Complete the debt summary chart for any debts that were included in your initial information as well as any additional debts you have as a result of your decisions (mortgage, car loan).

    Debt Type Amount Interest Rate Minimum Monthly Time to Pay off Total Interest Cost


Interest Rates: 19.75% for credit cards, 7% for line of credit, 4.25% for student loan.

What are your debt reduction plans? (which will you pay off first, will you pay more than the minimum monthly payments etc.)

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