Create a Budget Part 4

Name______________________

Project: Create a personal budget (PART 4)  : Finding a home

1.  It’s time to find out how much to spend on your home.
2. Take your monthly income (which you found in part 2) and multiply that

by .35 (or 35%). Multiplying by .35 is the same as taking 35% of something.

3. On a piece of loose-leaf paper use an area model to multiply .35 by your monthly income. Please attach it to this packet.  This gives you the maximum you should spend a month on housing. (maximum housing budget)

4. Fill out the top of “Choose your Home” paper.
5. https://www.zillow.com/syracuse-ny/ Look at some houses in the area.

6. Choose your house from the “Choose your home” paper based on your monthly housing budget. Take your monthly payment for your housing + utilities. Make sure it’s under your maximum budget. If you want to go over your maximum budget you will have to make up for it in other categories and be able to justify the choice.

7. Add monthly payment + utilities and subtract from monthly income to see how much is left over. Place that amount here_________________

Answer these questions:

1. What are some reasons to choose a smaller home? What about a larger home?

2. Why is a maximum of 35% of your income recommended for your house payment?

Keep all of your papers in your math folder to use for Part 5

Make sure you can tell me why you choose the house you did, how to find 35% of an amount. Make sure your area model is complete.