Cost of Living Reality Check: Scenario
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- Cost of Living Reality Check: Scenario
- Monthly Gross Pay $2,917 ($35,000 Divided by 12 Months) Federal Taxes
- State Taxes $100 Employment Benefits
- How Much Can You Afford
- What Monthly Payment Do You Think You Can Afford* (Net Income x 10% _____________)
- Prioritize Features Directions
- Desired Features
- Finance Option 1: Finance Option 2: Finance Option 3
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Purchasing an Automobile 
Step One: Your Income and Expenses Student Name___________________________________________ Date_______________________________ Cost of Living Reality Check: Scenario: If your parents have been covering or subsidizing your living expenses at home or college, you probably need a reality check before stepping out on your own. For many young adults, the combination of lower-than-expected take-home pay together with higher-than-expected living expenses can be a recipe for financial disaster. Your Income: Let’s start with your paycheck. You will be earning starting salary of $35,000 per year, divided in 12 months of $2,917 per month.
Your Expenses:Now that you know how much you can expect to bring home, you can divvy up your paycheck. Here's a general guide to help you budget your money to make sure your expenses are covered. The dollar figures in parentheses are based on our above example of a $35,000 gross salary with a monthly take-home pay of $2,113 per month after taxes and other deductions. 30% Housing 10% Utilities and other housing expenditures (including renters insurance) 15% Food (at-home and away) 10% Transportation (including fuel) 10% Debt repayment (student loans and credit cards) 10% Saving 5% Clothing 5% Entertainment 5% Car insurance and Maintenance Your Mission: Find the perfect automobile for yourself. This workbook will guide you through the planned buying process to evaluate your options, determine how you will pay for the vehicle and other costs associated with owning a car. Step Two-Monthly Payment Describe how the automobile will be used: How Much Can You Afford? Directions: Use the Practical Money Skills for Life website to calculate how much can you can afford. www.practicalmoneyskills.com/calculators > All Calculators > How Much Car Can You Afford?
**Go here to learn the sales tax in your state: http://www.sale-tax.com/Utah *When purchasing an automobile there are many expenses to consider when calculating the total cost of that automobile. In addition to the total cost of an automobile, a person should also consider the condition and required maintenance of an automobile. Step Three-Conduct Research Features Needed For Your Car Directions: Place a check mark next to important features for how the vehicle will be used: Price Transmission Interior Style Year (Automatic/Manual) Environment Impact Gas Mileage Body Style Color Fuel Type (SUV, Truck, Car) _________________ Number of Doors Navigation System _________________ Total Number of Miles Trunk/Cargo Space _________________ (If Used) Country of Assembly Towing Capacity _________________ Number of Seats Warranty _________________ Type of Engine Safety Ratings
1. Visit the Kelley Blue Book website: http://www.kbb.com/cars-for-sale. 2. Update your location if needed. 3. Answer the questions to indicate your desired features. 4. Click “View” to learn what models have your desired features. 5. Click “Quick view” next to the picture of each model and then “View full detail” to learn more about that model including additional features. (Model Details from KBB – Specs) 6. Identify and further research three automobiles in which you are interested. Record the make, model, year and price in the table on the next page.
1. Column one: Identify the eight most important automobile features. List them in column one in order of importance. When applicable, be specific and identify what is important about that feature. For example, if high gas mileage is important, rather than listing gas mileage, indicate 30+ miles per gallon. 2. Column two: Indicate why that feature is important. 3. Column three—five: Evaluate each vehicle and place a check mark along with any applicable notes in each column if the vehicle has that desired feature. 4. Last row: For each option, total the number of check marks.
Which vehicle would you select and why? Were you able to get all the features you wanted? If not, what trade-offs did you make? Step Four-Spending Plan Evaluation Financing Options
Which financing option would you use and why? If you had a poor credit score, what are two ways this could influence your access to credit and/or credit terms? In addition to the monthly payment, what are three additional automobile expenses to include in your spending plan? What would happen if you pay more than the minimum monthly payment each month? Step Five-Make the Purchase What are two ways you could minimize or reduce your out-of-pocket transportation costs? Would you purchase an extended warranty for this vehicle? Why or why not? If you have an automobile loan, what are two actions you will take to maintain a positive credit rating? Why is it important, and required, to have insurance for your automobile? What are two steps you can take to feel confidence with the potential lenders, dealerships and/or sales personnel you interact with? What are two ways you will protect yourself from fraud when purchasing an automobile? Throughout the research and purchase process, what are two strategies you can use to critically evaluate information? What items do you spend money on that aren’t included in the major expenditure categories? Directory: cms -> lib09 -> UT01001306 -> Centricity -> Domain Domain -> Millennial Speech & Debate Okinawa Withdrawal March pf lib09 -> Assignment – Read the article below, then answer the questions in your own words. Upload to Google classroom lib09 -> Marketing College Athletics Popularity of Amateur Sports lib09 -> Delaware cte program of study application local education agency information lib09 -> Gifted ortalentededucationresourceguid e lib09 -> Pirates of Silicon Valley Domain -> Fashion A: Standard 4: The Fashion Industry Domain -> Class Study Guide Packet Number Download 335.95 Kb. Share with your friends:
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