Name:Date:

Financial Lit.Period:

My First Apartment

Objective:
Students will be able to calculate expenses while living with a roommate or alone. Students will be able to calculate monthly payments from bills, taxes, and other expenses.
Directions:
After graduation, you will move out of your parents' house. You will have to get a job and rent an apartment. This lesson plan will prepare you for expenses in the real world.
Step 1: Pick a roommate and decide on a geographical location where you want to live.
Roommate: ______Location(city, state): ______
.Step 2: Income
2-1 Using find the median salary for the career of your choice in the location of your choice.
Career:______Median Salary:______
Since you will be new to the workforce you will not be making the median salary, multiply your salary by 85% to find an estimate for your starting salary.
Median Salary______x .85 = Your Salary (GROSS INCOME) ______
2-2 Calculate your federal taxes:
Use
Amount of Federal Taxes:______
2-3 Calculate your state taxes: use (NJ allows you to deduct $1,000 from your income before applying taxes)
Amount of State Taxes: ______
2- 4 Total Taxes: ______
Gross Income:______- Total Taxes: ______= Net Income ______
Step 3: Living Expenses
Create the Google Spreadsheet that contains your income and expenses. Copy the spreadsheet from my website. The following is a list of living expenses. Some of these are averages or estimates, you will populate the rest.
3-1 Individual Expenses:
Net Income per mont:______
Savings: 10% of your net income per month ______
If you plan to live in the suburbs? You need a car: Car Insurance: $80/month, Car Payment: $100, Gas: $60, Maintenance: $40
If you plan on living in a city? Find the costs for a monthly subway/ bus pass:
Name of the pass: ______, Cost:______
Food: $160/month
Cell Phone: $40 per month
Health Insurance/ Healthcare: $80/month
Miscellaneous: $50/month
Expenses you can split with a roommate
Water Bill: $20/month (if it is not included in the rent)
Power Bill: $100/month (if is not included in the rent)
Cable & Internet: $90/ month
3- 2 Rent an Apartment
Rent should be between 25% to 30% of your grossincome per year.
28% of your gross income per year is:______per month is______
Using the internet, find an apartment (if you have a roommate it needs to be a two bedroom)
Total Rent per month: ______Your share of the rent per month :______
Website: ______
Description of apartment and what is included in the rent (you may be able to remove the water or power bill if utilities from your expenses if they are included):
Step 4: Furnishings
After figuring out monthly expenses, each partner will then create a list of home furnishings. Each group will shop on the internet to find their furnishings' price. Make a list in Google Spreadsheet, including a description of the item, the cost and the website.
You will need: couches, end tables/coffee tables, bedding (mattress, sheets, pillow and comforter/blanket, dresser, TV, kitchen table, 2 lamps for each room (bedroom and the living room)
Each group will total up the furnishing expenses and divide it in half then by 12 to find their monthly payment to find the monthly expense per person. You will pay this off in one year. Include this payment as part of your monthly expenses.
A sample website:
Deliverables
Complete your portfolio using GoogleDoc and Google Spreadsheet.
For Each Student:
1 - This handout completed.
2 - A reflection essay typed in GOOGLE DOC containing the following information:
Paragraph 1: A description of your career and salary before and after taxes. The place (city, state) where you decided to live. What was your reasoning for picking that geographic location.
Paragraph 2: A description of the apartment, including the cost of rent and any utilities included in the rent. Explain your decision to have a roommate or live by yourself. Were you able to find an apartment to suit your needs with the money you had?
Paragraph 3: Include an overall description of the furniture your purchased and the total costs. Were you satisfied with your decisions? Did you use any money saving strategies to save money when buying furniture?
Paragraph 4: How much money is left over? If you did not have money left over how could cover your expenses. Tell me which discretionary expenses you could cut back on to cover your non-discretionary expenses. Are you satisfied with the amount of money you have left over? Will you have enough money to do the things that you enjoy doing? What parts of this project did you find useful, what didn't you like about this project.
3 - Individual Monthly Budget Spreadsheet completed in GOOGLE SPREADSHEET
For each Group
A spreadsheet of furniture (GOOGLE SPREADSHEET)
See Rubric for Grading