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Gross Monthly Income ($72,000 yearly income 12) $6,000 Federal Income Tax (22% based on yearly income) $1,276 State Income Tax (6% in Georgia) $348 FICA (Medicare) (1.45%) $84 Social Security (6.2% in Georgia) $360 Insurance (Health, Dental, Vision, etc.) $200 Net Monthly $3,732 Income Part III: Plan for Future Spending (Long Term Saving) Future spending is for purchases you will make sometime in the future, typically a year or more later. The costs tend to be higher than regular spending and thus require saving for it. This is often referred to as long term saving. Examples of this can include investing, saving for a car or home purchase or even a new cell phone. A. Identify a long term goal you wish to save towards (try to be specific): In a year I want to save for Prius B. How long do you plan to save for? 1 C. How much do you need to save each year to reach your goal? D. How much do you need to save each month to reach your goal? Put at least $250 of my paycheck in a savings account year

Gross Monthly Income ($72,000 yearly income 12) $6,000 Federal Income Tax (22% based on yearly income) $1,276 State Income Tax (6% in Georgia) $348 FICA (Medicare) (1.45%) $84 Social Security (6.2% in Georgia) $360 Insurance (Health, Dental, Vision, etc.) $200 Net Monthly $3,732 Income Part III: Plan for Future Spending (Long Term Saving) Future spending is for purchases you will make sometime in the future, typically a year or more later. The costs tend to be higher than regular spending and thus require saving for it. This is often referred to as long term saving. Examples of this can include investing, saving for a car or home purchase or even a new cell phone. A. Identify a long term goal you wish to save towards (try to be specific): In a year I want to save for Prius B. How long do you plan to save for? 1 C. How much do you need to save each year to reach your goal? D. How much do you need to save each month to reach your goal? Put at least $250 of my paycheck in a savings account year

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NOT A GRADE THIS IS A STUDY GUIDE. 

Only need help on Part III 

Goal is to save for a Prius

Gross monthly income and net monthly income provided 

**Budgeting and Saving Assignment** **Income Breakdown:** - **Gross Monthly Income:** $6,000 (based on a $72,000 yearly income) - **Federal Income Tax:** $1,276 (22% based on yearly income) - **State Income Tax (6% in Georgia):** $348 - **FICA (Medicare):** $84 (1.45%) - **Social Security (6.2% in Georgia):** $360 - **Insurance (Health, Dental, Vision, etc.):** $200 **Net Monthly Income:** $3,732 --- **Income Part III: Plan for Future Spending (Long Term Saving)** Future spending pertains to purchases planned for a future date, typically a year or more later. These costs are higher than regular spending, hence the need for saving. This is often called long-term saving. Examples include investing, saving for a car, home purchase, or a new cell phone. **A. Identify a long-term goal you wish to save towards (try to be specific):** - In a year, I want to save for a Prius. **B. How long do you plan to save for?** - 1 year **C. How much do you need to save each year to reach your goal?** **D. How much do you need to save each month to reach your goal?** - Put at least $250 of my paycheck in a savings account. --- **Part IV: Plan for Irregular Spending (Short Term Saving)** Irregular, or periodic, spending are bills paid outside your normal monthly spending. These include biannual or annual bills. Planning for these expenses prevents being caught off guard, hence the term short-term savings. To find the monthly amount of irregular bills, divide the yearly cost by 12. **Directions:** The chart below contains various irregular expenses. Some are... (the rest of this section contains instructions for calculating short-term savings, though the chart is not visible).
Transcribed Image Text:**Budgeting and Saving Assignment** **Income Breakdown:** - **Gross Monthly Income:** $6,000 (based on a $72,000 yearly income) - **Federal Income Tax:** $1,276 (22% based on yearly income) - **State Income Tax (6% in Georgia):** $348 - **FICA (Medicare):** $84 (1.45%) - **Social Security (6.2% in Georgia):** $360 - **Insurance (Health, Dental, Vision, etc.):** $200 **Net Monthly Income:** $3,732 --- **Income Part III: Plan for Future Spending (Long Term Saving)** Future spending pertains to purchases planned for a future date, typically a year or more later. These costs are higher than regular spending, hence the need for saving. This is often called long-term saving. Examples include investing, saving for a car, home purchase, or a new cell phone. **A. Identify a long-term goal you wish to save towards (try to be specific):** - In a year, I want to save for a Prius. **B. How long do you plan to save for?** - 1 year **C. How much do you need to save each year to reach your goal?** **D. How much do you need to save each month to reach your goal?** - Put at least $250 of my paycheck in a savings account. --- **Part IV: Plan for Irregular Spending (Short Term Saving)** Irregular, or periodic, spending are bills paid outside your normal monthly spending. These include biannual or annual bills. Planning for these expenses prevents being caught off guard, hence the term short-term savings. To find the monthly amount of irregular bills, divide the yearly cost by 12. **Directions:** The chart below contains various irregular expenses. Some are... (the rest of this section contains instructions for calculating short-term savings, though the chart is not visible).
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