Life Transitions 30
Unit 8
Independent Living
Copyright: Ministry of Education, Saskatchewan
May be reproduced for educational purposes
2009 Printing
Unit 8: Independent Living
Table of Contents
Objectives 5
On Your Own 7
Housing 7
Transportation 19
Paying Bills 24
Recreation 26
Unit Summary 27
Assignment 8 29
Supplement Suggestions
This unit requires supplemental information in order to be completed. The following chart outlines some suggested sources of supplement information.
Unit Topic / Supplemental Information & SourceRenting A Home / Consumers
Source: Canada Mortgage and Housing Corporation (CMHC)
Website: http://www.cmhc-schl.gc.ca/en/index.cfm
An Investment Primer
Source: Advocis (The Financial Advisors Association of Canada)
Website: http://www.advocis.ca/content/consumers/investment.html
Information for Landlords and Tenants / Office of Residential Tenancies
Source: Justice and Attorney General (Government of Saskatchewan)
Website: http://www.justice.gov.sk.ca/Information-for-Landlords-and-tenants
Forms and Sample Documents / Office of Residential Tenancies
Source: Justice and Attorney General (Government of Saskatchewan)
Website http://www.justice.gov.sk.ca/Forms-and-Sample-Documents
Purchasing A Vehicle / Used Vehicle Buyer’s Guide
Source: Saskatchewan Government Insurance (SGI)
Website http://www.sgi.sk.ca/sgi_pub/vehicle_standards/used_veh_buyers.html
Purchasing and Repariing a Vehicle
Source: Consumer Protection Branch (Government of Saskatchewan)
Website: http://www.justice.gov.sk.ca/purchasing-and-repairing-a-vehicle
Independent Living
“We should all be concerned about the future because we will have to spend the rest of our lives there.”
Charles Kettering
Engineer and inventor
On Your Own
Leaving high school is an important milestone in a person’s life. It is wise for young adults to prepare emotionally and financially for the changes that independent living will bring. Dreaming about the future is fine, but you must also set goals and make plans. As you move through your teen years, you may change your goals many times. It is the continuous process of setting goals, working toward them, evaluating progress, and modifying goals or establishing new ones, that keeps you in charge of your life.
Housing
One of the most important decisions that students nearing the end of high school will make is where they are going to live after graduation. This decision is influenced by a number of factors including the following:
• your work and educational goals
• whether you will be living in the same community or moving away
• the housing options in the area where you will be living
• financial considerations
• personal preferences
Renting or Buying
Your first major decision when you begin to look for housing will be whether to buy or to rent. Most young people right out of high school or college have not had the opportunity, or time, to save for the down payment on a home of their own. Renting seems the best, or only alternative, in this situation. It is important, however, to consider the advantages of both renting and buying before you decide what is possible, and best for you. In the following chart, list the major advantages of renting and buying. The chart has been started for you.
Advantages of Renting / Advantages of Buyinglower initial costs / housing is an investment-most houses increase in value over time
no repairs or maintenance costs / freedom to renovate or decorate as you please
greater mobility
Selecting Rental Accommodation
This unit will focus on renting since that is the option that most young people first select. Different types of rental accommodation have different features and people look for different features in housing because their needs are different. Complete Assignment Activity 1 called Different People—Different Homes on the following page. This activity is worth ten percent of your unit mark and will be handed in as part of the assignment.
Assignment Activity One
Different People-Different Homes
Several types of rental housing are listed below. Identify at least one advantage and one disadvantage of each one. The first one is done for you as an example.
Type of Housing / Advantages / DisadvantagesHouse / - privacy
- more space
- yard and garden space / - may be expensive
- have to maintain the yard
Duplex
(a house built to accommodate two families)
High-Rise Apartment
Low-Rise Apartment
(no elevator)
Single Room
Town House
(a row house)
Condominium
Room and Board
University or Technical School Residency
Mobile Home
The first move away from home can bring many pressures, stresses, challenges, problems, and expenses. By considering the following factors, you will reduce your chance of unexpected problems and increase your chance of making the transition a smooth and positive one.
When you are considering a rental property, don’t assume that you have to accept the first terms the landlord offers. There may be some room for bargaining, particularly if it is a renter’s market and the landlord is anxious to rent to you. The landlord may reduce the rent, paint the property, provide drapes, and so on, if you request them.
Residential Tenancies Act & Regulations
In Saskatchewan, The Residential Tenancies Act and Regulations came into effect on March 1, 2008. This Act provides the rules for landlords and tenants.
Signing a Lease
When renting accommodation, you will likely be asked to sign a
lease. A lease is a written agreement between the landlord and
tenant that outlines the terms and conditions of rental. Leases
may be for one month, half a year, or a year. When you rent,
make sure that you know exactly what you are signing before you
put your name on the dotted line.
Below are some guidelines to follow when signing a lease.
• Do not accept verbal assurances
Oral agreements are not worth anything. Make sure that all your landlord’s good intentions are written into the lease.
• Do not assume the landlord’s burdens
You should not be liable for all repairs. Your liability should extend only to damage you cause.
• Read your lease carefully
Be sure you understand the lease. Many leases have tax escalator clauses that allow the landlord to raise your rent anytime his property or water taxes are raised, even during your current lease. The landlord may strike this clause.
• Be sure you can sublet if necessary
You may have every intention of remaining in your rented accommodation for the duration of your lease; however, circumstances change quickly. Make sure your lease has a clause allowing you to sublet (arrange for a new tenant to take over the rest of your lease).
• Get a signed copy of the lease identical to the landlord’s copy
If a copy of the lease is not available when you are ready to sign, tell the landlord you will come back when it is ready.
• Do not sign a lease which has a space left blank
Make sure all relevant dates, rental fees, and so on, are clearly set down before signing. Do not accept any assurances that these will be filled in later. They could be completed in a way you do not like.
• If you leave a deposit, get a receipt
Security deposits on new tenancy agreements may be taken to a maximum of one month’s rent. Landlords must pay interest on security deposits at the rate set in the regulations. Be sure to get a receipt for any payments made.
• Remember your renewal date
Most leases are subject to automatic renewal unless you give the landlord the stated notice of your intention to vacate.
Do not sign any clause making you responsible for all repairs. You should pay only for the damage you cause.
• Do not sign a lease on the dotted line
Put your signature immediately below the last clause leaving no room for anyone to add clauses after you have signed.
The Residential Tenancies Act outlines the rights and responsibilities of landlords and tenants in Saskatchewan and provides for a system of rent increases. The Act is administered by the Office of Residential Tenancies.
Board and Room
If you are considering board and room, completing the following chart may assist you in deciding between the options available to you.
Board and RoomSize / Location / Cost / Date
Available / Are Meals Included? / Private or Shared Room / Private or Shared Bath / House-hold Rules / House-hold Duties / Other
Option 1
Option 2
Living With a Roommate
Most young adults live with roommates in order to reduce living expenses. Sharing a place with others has it advantages and disadvantages. It is important to discuss financial details, as well as expectations, before moving in with a roommate. Determine how the security deposit, rent, utility bills, food cost, and furniture expenses will be paid. Discuss, as well, the appropriate notice that should be given if one roommate decides to move out. Roles and responsibilities must be defined and issues such as overnight guests and so on should be discussed. Establishing house rules and guidelines at the outset can help to eliminate a lot of problems. Consider the following causes of conflict.
• different expectations regarding friendship and companionship
• differences in work/study habits
• differences in friends
• differences in cleanliness/neatness
• differences in eating habits
• different tastes in music, TV, or entertainment
• problems with use of the phone
• competition for the bathroom
It is much easier to discuss these matters, objectively, before moving in together than it is after the problems occur. It is also a good idea to look for accommodation together. In this way, roommates can mutually determine whether the rental accommodation is appropriate for them. A contract ensures that one person’s standards and preferences are not being imposed on the other.
Housing Costs
High school students are often unaware of all the costs associated with living independently. In the assignment for this unit, you will have the opportunity to prepare an itemized housing budget for a year. The following activity will help you to estimate how much you will have to include in your budget for household equipment and supplies. This activity is worth twenty percent of your unit mark and will be handed in as part of your assignment.
Assignment Activity 2
The Cost Of Setting Up A Household
When you begin to live independently one of your biggest expenses will be setting up a household.
Imagine that you are living alone and that you are renting a small, two-bedroom house. The house is completely unfurnished. It has no appliances or furniture.
1. Identify the basic items you will need to equip the household. List the items under the appropriate headings in the chart below.
2. Use catalogues, advertisements, or visit stores to find the costs of the items you have listed. Assume that you are purchasing new items. List the costs in the chart below.
Items
/ Cost / Information Sourceappliances and electrical equipment
example: / microwave oven / $150.00 / Sears Catalogue
furniture
cookware, dishes, and utensils
bedding and towels
Total cost
3. List three ways that the cost of equipping a home might be reduced.
•
•
•
4. List some basic food, cleaning, and health care products that you will need to have on hand in your home.
Food Supplies:
Cleaning and Laundry Supplies:
Health Care Products:
Transportation
When you live at home you often have access to the family car, or to rides from family members. When you live independently, transportation can be a major problem and expense. Depending on your location and circumstances, the following options may be available to you.
Public Transportation
Public transportation has many benefits. The local bus is an ideal
way to get around a city compared with a car. You are freed from
the worry of driving and parking, the cost of insurance, the
problems that arise if you are involved in an accident, and all the
other things related to owning a car. It is an excellent means
of transportation for those employed in crowded, downtown areas.
Public transportation is not without its drawbacks. Your travel must be arranged around bus schedules and routes. These schedules and routes may not be convenient for you. On Sundays and holidays there are sometimes limited hours of operation. Sometimes buses can be crowded during peak hours. There are no seat reservations and you cannot always choose who you will be sitting beside.
Private Vehicles
Purchasing a Vehicle
Most North American families own and operate one or more vehicles. Individually, and as a society, we are dependent on cars. The purchase of an automobile is a major investment.
Even after you feel that you have found the perfect car for your pocketbook and needs, there are still a few things that you must attend to before the vehicle purchase is complete.
Leasing a Vehicle
Leasing is an alternative to vehicle ownership. It is gaining in popularity as the price of automobiles climbs. When leasing a car you sign a contract to pay a specified amount of money each month for the period of the contract. Lease agreements are popular with people who
• use their cars primarily for business or professional purposes. (The cost can be used as an income tax deduction.)
• prefer to put their cash into something other than a car, since there is no down payment or expensive long-term loan involved.
• need an itemized account of operating expenses.
• want freedom from the worries of bargaining, insuring, maintaining, repairing, and selling the car, and are willing to pay for this convenience.
• want and can afford to operate late model luxury cars, but do not have the cash for a down payment.
• need a car for a limited length of time - a few months or a year.
Ideally speaking, candidates for leasing should drive 20,000 miles a year; have an above-average income; and good credit, job, and insurance records.
If economy is of greater importance to you than convenience, you would probably be better off buying a car, since leasing is rarely cheaper for the average person.
Operating Expenses
In addition to loan or lease payments on a vehicle, owners must also add operating costs to their budgets.
List as many operational costs as you can in the space below.
Costs Involved in Operating a Vehicle:
Did you think of parking, depreciation, license and registration fees, and insurance?
Depreciation is the value a car loses as it is operated and as it ages. A new car depreciates by approximately thirty percent in the first year, fifteen percent in the second year and ten percent in year three.