← Back to Financial Examples

Life Before Lectures — Worked Example

One Year Near Purdue University

Independent living in West Lafayette, IN before classes begin

This example shows what one intentional year could look like for an 18-year-old who lives independently near the Purdue University, works two part-time jobs, pays ordinary living expenses, and prepares for whatever comes next.

$2,746 Total move-in need
$1,996 Furnishings & supplies
$750 Deposit & application

Page 1 — Move-In Expenses

Total: $2,746
Room / Area Total
Entire Apartment / General $192
Sleeping Area / Bedroom $559
Living Area $646
Kitchen $436
Bathroom $84
Work / Study Area $79
Furnishings & Household Supplies $1,996
Security Deposit $700
Apartment Application Fee $50.00
Total Needed to Move In $2,746

What the move-in total includes

Basic furniture, bedding, cookware, dishes, cleaning supplies, bathroom necessities, household tools, a television, and a small work/study setup.

The figures reflect modest, practical purchases rather than luxury furnishings. Full detailed list can be provided.

Actual Apartments.com Listings near campus

Stonecrest Apartments - $625/mo

911 N. 10th St - $700/mo

509 New York St - $685/mo

Possible Family Arrangement

Parents could loan the student the initial Total Move-In-Need, to be paid back at the end of the year. The student should only use a debit card and NOT have any credit cards to avoid debt and spending beyond their means. Parents may help with true emergencies.

Purdue University has just about everything you could want in a university staring with a stellar reputation for academics. But it has so much more. It's only 3 hours from Peoria but seems like a world apart. Its campus is more than 150 years old but has room for 50,000 students which, kind of transforms this town of 45,000 overnight every August. Oh, and they've also been known to have some incredible football and basketball teams as well in this picturesque Midwestern town.

Life Before Lectures — Worked Example

Income, Monthly Expenses & Year-End Result

A realistic budget built on modest wages and ordinary living costs

Estimated Income

$2,127.13 net per month
Job Hrs/Wk Wage Gross FICA
7.65%
State
5%
Fed Tithe
10%
Net/Wk Weeks Net/Year Net/Month
Job 1 20 $15.00 $300.00 ($22.95) ($15.00) $0.00 ($30.00) $232.05 50 $11,602.50 $966.88
Job 2 24 $15.00 $360.00 ($27.54) ($18.00) $0.00 ($36.00) $278.46 50 $13,923.00 $1,160.25
Total 44 $660 ($50.49) ($33.00) $0.00 ($66.00) $510.51 50 $25,525.50 $2,127.13
Example Assumption: This budget assumes the student is claimed as a dependent, works two part-time jobs, and has no federal income tax withheld or owed. Actual paychecks and tax returns vary based on individual circumstances.

Monthly Living Expenses

$1,858 per month
ExpenseAnnual MonthlyNote
Rent $700.00
Utilities $125.00
Internet $50.00
Cell phone $20.00
Renter's insurance $150 $12.50
Car payment $0.00 $0.00 Parents pay
Auto insurance $0.00 $0.00 Parents pay
Health insurance $0.00 $0.00 Parents pay
Fuel $150.00
Car repairs / oil $200 $16.67
Groceries — food $250.00
Groceries — non-food $50.00
Fast food $50.00
Dining out $30.00
Entertainment $50.00
Savings $100.00
Vacation $1,000 $83.33
Misc. household $50.00
Streaming $20.00
Health club $0.00 At apartment
Haircuts $25.00
Presents $500 $41.67
Clothes $400 $33.33
Total Monthly Expenses $1,858.00

One Possible Year-End Result

Net monthly income $2,127.13
Monthly living expenses ($1,858.00)
Monthly amount remaining $269.13
Approximate annual amount remaining $3,230
Repayment of parents' move-in loan ($2,746)
Cash remaining after repayment $483

At the end of the year, the student could repay the full amount advanced by the parents with the amount shown above in savings, and begin the next stage of life with a furnished household, work experience, and a full year of independent living behind him.

What This Example Demonstrates

The numbers are not intended as a promise. They show one practical scenario in a college town where modest housing and ordinary entry-level wages (which are typically pentiful near a college campus) can make the plan workable.

Location Matters

This example is based on this specific town and apartments within a few miles of this campus. Housing costs and job opportunities will differ by city, and the same model may not work near every university.

Back to ExplanationSee All Examples