BASICALLY MAKE A BUDGET FOR FININACIAL PLAN USING PART 1 INFO I HAVE PROVIDED USE LINKS PROVIDED TO CALCULATE THINGS AND EXPLAIN, ANSWER EVERY QUESTION THROUGHLY

In this project you will use the mathematical tools developed during this course to develop a financial plan and budget for your "family". Some of the tools you will be using will include:

Analysing and interpreting data (create pie charts)

Financial analysis and budget analysis

Part 1 - Determine your family composition, job and starting incomes

Part 2 - Determine transportation expenses, and housing expenses (mortgage

THIS PART I HAVE PROVIDED BELOW IS PART 1 THIS INFORMATION IS NEEDED FOR YOU TO ANSWER PART 2

Occupation: Software Engineer

Occupation Description: The occupation chosen for this scenario is a Software Engineer. Software engineers are professionals responsible for designing, developing, and maintaining software systems. They analyze user needs, design software solutions, write code, and debug and test software applications. They work in various industries, including technology, finance, healthcare, and entertainment.

Education Required: To become a software engineer, a bachelor's degree in computer science, software engineering, or a related field is typically required. Some employers may prefer candidates with a master's degree or relevant work experience.

Employment Outlook in Canada: The employment outlook for software engineers in Canada is positive. With the increasing reliance on technology and software in various sectors, there is a growing demand for skilled software engineers. The rapid advancements in technology, including artificial intelligence, cloud computing, and cybersecurity, create numerous job opportunities for software engineers.

Starting Salary and Benefits: The starting salary for a software engineer can vary depending on factors such as location, company size, and level of experience. According to research, the average starting salary for a software engineer in Canada is around $65,000 to $80,000 per year. However, it's important to note that salaries can differ based on the region and the specific company.

Net Annual Income Calculation: To determine the net annual income for a software engineer in Ontario, Canada, we can use an online tax calculator. Using the website mentioned (https://www.icalculator.info/canada/taxcalculator/annual/2020/Ontario.html), enter the gross annual income of the software engineer, let's say $75,000, and calculate the net annual income. The net income takes into account the deductions for taxes, Canada Pension Plan (CPP), Employment Insurance (EI), and other applicable deductions.

Assuming a gross annual income of $75,000, after calculating the deductions, the net annual income for the software engineer would be approximately $57,250. It's important to note that tax rates and deductions may vary each year, so it's advisable to use the most up-to-date tax calculator for accurate results.

Family Composition: For this financial plan, the household will consist of a married couple with two children. Here are the details of the family composition:

Marital Status: Married Spouse/Partner Occupation: Teacher Spouse/Partner Gross Annual Income: $55,000 Spouse/Partner Net Annual Income: To determine the net annual income for the spouse, the same process as before can be followed using the online tax calculator and entering the gross annual income of $55,000.

Assuming a gross annual income of $55,000 for the spouse, the net annual income would be approximately $42,750 (using the same tax calculator mentioned earlier).

Children: Two children Gender and Ages: The gender and ages of the children can be determined based on personal preference or the needs of the financial plan.

Combined Household Income: To determine the combined gross annual income, we add the gross annual income of the software engineer ($75,000) and the spouse's gross annual income ($55,000). The total combined gross annual income would be $130,000.

Considering the given restriction that the combined household income cannot exceed $350,000 gross, the selected combined gross annual income of $130,000 falls well within the limit.

It's important to note that this scenario is for illustrative purposes only, and actual financial planning should consider individual circumstances, taxes, living expenses, savings goals, and other factors that may influence the overall financial plan.

PART 2:

Make a budget spreadsheet. Enter your and your partner's gross salary and net salary. Make sure your monthly salary is calculated properly.

A. Transportation Costs Based on your personal needs (i.e. vehicle for work, occasional trips etc.) identify your transportation choice (car, truck, bike etc.) and identify the purchase price. In your"word" or "docs" report, describe the vehicle you plan to purchase. State whether you will buy or lease the vehicle. Determine how you plan on paying for this vehicle and determine your monthly payments using an online payment calculator" the cost of the vehicle, the interest rate, the length of time you plan to take paying off your loan. Identify and estimate any other vehicle expenses to be included in your monthly budget (insurance, gas, maintenance, etc.)

B. Housing Costs Based on your budget determine the maximum mortgage you can afford and the monthly payments. i) Buying a house and fees associated with it:

Include the mls listing (description and photo)

Find the CMHC if it is 2% of the loan (mortgage).

You are able to put down a 5% down payment. Calculate this amount(2 marks)

Real estate fees are 2.5% of the purchase price plus GST

Lawyer fees to close the deal (research) and calculate (3 marks)

ii) Mortgage:

Refer to mortgage lesson (see link for review) to help https://tvolearn.com/products/map4c-foundations-for-college-mathematicsonline-course?goto=3

Calculate how much 5% is and how much the balance you would have to mortgage. (1 mark)

Research RBC, TD and one of your choice and make a table showing the following: 5 year fixed rate, 3 year fixed rate, 1 year variable rate (3 marks)

In the same chart, show the monthly payments your family will have to make for 20, 25 and 30 amortization period (3 marks)

Calculate the total principal paid on the mortgage over the 5-year term. (3 marks)

Calculate the total interest paid over five years. (3 marks)

Calculate your monthly property taxes and include in your budget (1 mark)

Mortgage payments (the one you chose) in your budget DUE: JUNE 14th

House insurance (in your budget)

C: OTHER Expenses: Using the internet or by interviewing adults who own a home, research other costs (property taxes, heating, hydro, water, life insurance on mortgage, home insurance, etc.) associated with accommodations; add these costs into your budget spreadsheet. You may need to add rows or columns to your spreadsheet as you enter more expense categories.

Here is a list of some expenses you may encounter but it isn't necessarily all of them

: Rent Mortgage,

property taxes,

life Insurance,

home insurance

Tenant Insurance

Utilities Heat, Hydro, Water

Phone

Satellite/cable

Internet

Netflix

Spotify

Groceries

Dining Out Pet - food, toys, vet, grooming

Cleaning - dish soap, laundry detergent, bathroom, kitchen, floor cleaners, dustings supplies, etc.

Coin Laundry

Entertainment - movies, theatre, flights to sports games, sports, books, concerts, hobbies, gaming

Gifts

Clothing

Charitable Donations Medical (prescriptions - most free until age 25, eye care, dental) Tylenol, other medications Personal care - haircuts, massage, physio, Cosmetics - shampoo (stuff for hair), soap, make up, toilet tissue, Kleenex, paper towels

Savings - short term (less than one year), long term Transportation - car loan, insurance, licence, gas, maintenance, repairs, parking, tickets (or bus) vacation

D: Make a pie graph to show all your expenses Make sure you include a title, label each section, legend if needed, percentages are included