The purpose of this project is to introduce some important financial concepts that will help you
make sound decisions both now and after graduation. The project has several areas of focus that demonstrate
the importance of the underlying foundational financial principle of living within your means.
First, you will identify your means by researching the job you would like to have after graduation. Next,you will calculate taxes to understand how much of your means will be claimed by taxing authorities.
You will prepare a budget to demonstrate how to live within your means and calculate the impact
of debt repayment on your budget to emphasize the cost of living above your means. You will also calculate
various savings scenarios to recognize the benefit of living below your means today, in order to
save for the future. By working through this project, you will lay the foundation for developing a personal
budget that will help you differentiate between needs and wants, focus on the most important
goals, and avoid the pitfalls of excessive debt. Moreover, you will see the benefit of beginning savings plans sooner rather than later. This is certainly a project that follows the adage “the more you put into it, the more you will benefit.”
This project has three distinct parts: Income and Taxes, Budgeting and Repaying Debt, and Long-
Term Savings. In addition to the case, there is an Excel workbook for each part to facilitate your understanding of the content and to use to report your calculations and answers.1 Also, Appendix A lists the web sites used in this project as well as other useful resources.