Personal Finance Final Project

Due 1/12/2018

Turn PowerPoint into Edmodo

Turn Spending plan into Mrs. Dieterle

Scenario: You have finished college and looking forward toyour future as a financially independent individual.

You need to create a detailed personal future financial planand budget that will secure your independence. No parents, no roommates, nothing to depend on but your own head on yourshoulders!

You currently have$5,000 in a savings account to start with, that may be spent on either necessity or luxury items, or if you choose, not at all.

The following is a list of thingsyou need to includein your financial plan that must be presented in the form of a PowerPoint presentation:

Career

Identify theOccupationyou plan to have when you finish all your schooling

PROVIDE:

  • ALL Necessary Education/Training For Your Job
  • Job Title/Responsibilities
  • StartingSalary Based On Location

Use SDMylife.com or

Location

IdentifyCityandStatein which you plan to reside.

PROVIDE:

  • Community information (population, things to do)

  • Pictures / maps of the city
  • Possible place of employment (i.e., if you had your choice, where would you like to be employed?)
  • Use for information or for maps.
Housing
Identify theTypeof housing you plan to live in.
PROVIDE:
  • Find an actual apartment or house (make sure you get pictures)

  • What is the rent/mortgage (how much $ per month?)

  • Monthly utility cost(s) (how much $ per month?)

  • Furnishings (how much $ - what will you need to get started?)
  • Use the following websites to help:
  • apartments
  • apartments
  • houses
  • furniture, household needs
  • mortgage calculator (for purchasing a home only)
Vehicle
You have two options on this one: Option 1: Car you intend to own or Option 2: public transportation (for the people who live in a city where owning a car doesn’t make since)
Option 1:Identify theTypeof Caryou intend to drive.
PROVIDE:
  • Make, Model and Year of Car (Get Pictures!)

  • Purchase Price

  • Term of Loan with Interest Rate

  • Monthly Payment

  • Insurance (Cost Per Month)
  • Use these websites to help:

  • used/new cars
  • payment calculator
  • insurance estimator
  • insurance estimator
  • insurance estimator
NOTE:When using the insurance estimator tools DO NOT ENTER any personally identifiable infomation (SSN, Drivers License #, Phone #, etc.)
Option 2: Identify theType of Public Transportationyou intend to use and the
monthly cost of using it.
PROVIDE:
The monthly cost of using this method of transportation
Use this website:
Personal Expenses
Identify all Necessity and Luxury Items you will need to purchase/pay for on a regular (monthly) basis.
PROVIDE MONTHLY EXPENSES FOR (All expenses listed below are optional):
  • Land Line Phone
  • Cell Phone
  • Internet
  • Cable TV
  • Entertainment (movies, music, going out to eat, etc.)
  • Prescription drug copayments (if you have a regular monthly prescription)
  • Anything else that you wouldpurchase on a monthly/yearly basis

Health Insurance
The following information represents your various options regarding health insurance. All information is based on current national averages.
YouMUSTchoose from the following set of options (based on career path) and include the expense in your automatic deductions.
*Your deductible should either be budgeted formonthly OR you mayuse your $5,000 savings. Money set aside for your deductible should be treated like savings and should only be spent for this purpose. If this money is not used within your first year, it may be carried over to the next, and hence would not need to be budgeted for.
Plan #1:
Public employees (i.e., you work for the government, a school, etc.)
5% of your salary must be deducted for health insurance
$1,500 deductible - you must budget for this
$15 copayments for Dr. visits and prescription drugs
Plan #2
Private employees (i.e., you work for a private company or business)
9% of your salary must be deducted for health insurance
$3,000 deductible - you must budget for this
$20 copayments for Dr. visits and prescription drugs
Plan #3
Self-employed individuals (*this assumes that you have no employees) OR those wishing to purchase health insurance on their own
22% of your salary must be deducted for health insurance
$5,000 deductible - you must budget for this
$25 copayments for Dr. visits and prescription drugs
Plan #4
State/regional health care exchange plan for low/moderate income earners (based on current standards set forth by the Affordable Care Act).
If your annual income is approximately $14,000
3% of your salary must be deducted for health insurance
$650 deductible - you must budget for this
$20 copayments for Dr. visits and prescription drugs
If your annual income is approximately $22,000
6% of your salary must be deducted for health insurance
$1000 deductible - you must budget for this
$20 copayments for Dr. visits and prescription drugs
If your annual income is approximately $33,000
8% of your salary must be deducted for health insurance
$1350 deductible - you must budget for this
$20 copayments for Dr. visits and prescription drugs
Spending Plan (This will not be on PowerPoint it will done on spending plan worksheet and handed into Mrs. Dieterle)
You need to fill out the spending plan for your budget:
Fill in your monthly expenditures from above
Fill in some fixed payments also they are listed below:
  • Groceries- food only (Based on USDA, U.S. averages for 1 person. *Does not include dining out)
  • Thrifty plan =$188/month
  • Low cost plan =$240/month
  • Moderate plan =$300/month
  • Liberal plan =$350/month
  • Student loan paymentif you attended college. (Based on average debt carried by recent graduates who achieved the following degrees)
  • Associates Degree=$150/month
  • Bachelor’s Degree=$290/month
  • Master’s Degree=$400/month
  • Doctorate/Law Degree=$800/month
  • Clothing, Housekeeping Suppliesand Personal Care Products(based on IRSmaximum allowances)
  • Clothing =$40/month
  • Housekeeping =$30/month
  • Personal Care Products =$30/month
  • $275per month forGas and Misc. Car Repairs(if you own or lease a vehicle)
  • 30% of your annual salary deducted forTaxes/S.S.(You must calculate)
  • 5%of your monthly take home pay (pay after taxes have been deducted)to be depositedinto a bank of your choice (You must calculate)
This will not be in your PowerPoint but written down on a spending plan sheet.
Remember when you make your spending plan you need to come out to a small positive balance or a zero balance. If it comes out negative, you need to give up some stuff.
Grading Rubric Final Project
Power Point layout
Name:
Content / Possible Score / Awarded Score / Comments
Career: Necessary Education Training; Job Title; Responsibilities; Starting Salary; Pictures / 25
Location: City, State; Community information; Pictures / 25
Housing: actual house/apt; rent/mortgage; average monthly utilities (if possible); furnishings; Pictures / 25
Vehicle: Option 1 – Make, Model, Year of Car; Purchase Price; Loan Information; Insurance Information
OR
Vehicle: Option 2 – Type of Public Transportation with cost / 25
Personal Expenses: Land line phone; Cell Phone; Internet; Cable TV; Entertainment; Medicine copays; Anything else on a monthly basis / 25
Health Insurance: List plan, deductibles and copays / 25
Budget: Excel spreadsheet printed and handed in (See below for budget breakdown) / 100
TOTAL: / 250
Description / Points Possible / Points / Comments
Smart Goal / 20
Gross wages / 10
Salary Deductions / 10
House / 10
Transportation and Insurance / 10
Food / 10
Other Expenditures / 10
Balance is 0 or less than 20 / 20
Total / 100