SIX WEEKS PROJECT - Welcome to Mrs Swail's Website



ECONOMICS – FINAL SIX-WEEKS PROJECT

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(The entire project must be typewritten.)

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Congratulations! You have graduated from Austin High School. Your parents are overjoyed and you come home to find all of your belongings are packed and waiting on the front porch. You must now look for a place to live, a new job, and transportation.

1. RÉSUMÉ -- You need a typed résumé stating your educational background and work experience.

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2. THREE JOB ADS -- Then, you must look for employment for which you are qualified. You may look in the newspaper classified ads or on the Internet. Select three jobs for which you are qualified and place those ads in your folder. What is the monthly salary of each of these jobs?

|Résumé |10 points |

|3 ads |5 points |

|Monthly salaries |5 points |

3. [pic]THREE APARTMENT ADS -- Now that you have a job, you need to find a place to live. You snore loudly and you are a slob. Nobody wants you for a roommate, so you must find a one-bedroom or efficiency apartment in your favorite part of town. Get three (3) ads from the Internet, newspaper, or apartment locator magazine. You must find the following information for each of the three apartments.

|Monthly Rent |5 points |

|Security Deposit/Pet |5 points |

4. UTILITY DEPOSITS now get information for one of the apartments you have chosen. Even if your apartment manager pays all utilities, you still must call the electric and gas companies to get the deposit information.

|GAS DEPOSIT | 5 points |

|ELECTRIC DEPOSIT | |

[pic] CABLE TELEVISION (INCLUDE PREMIUM CHANNELS)

|CABLE INSTALLATION | 5 points |

| MONTHLY COST | |

5. [pic] TELEPHONE – obtain information from two different cellular phone companies regarding two of their calling plans. (minutes, long distance, etc.)

|CELL PHONE CALLING PLANS | 5 points |

6. INTERNET – Determine the prices for an internet provider. (example: AOL)

|Company plan |5 points |Price per Month and installation |10 points |

7. [pic]TRANSPORTATION. Now you need transportation. You must buy a car that you would like to have. Get three ads on the same model car (example – three different quotes on a Honda Civic) from the newspaper or Internet.

8. TAX, TITLE, AND LICENSE - Next, calculate the tax, title, and license for one of the quotes.

9. AUTO INSURANCE - Contact three insurance companies to get quotes for full coverage on your new car.

10. [pic] CAR PAYMENT – Calculate your monthly car payment at 8% interest for 5 years. or USE THE LOWEST QUOTE ON THE CAR.

|3 ADS FOR A CAR |5points |

|TAX, TITLE, AND LICENCE |5 points |

|3 INSURANCE QUOTES |5 points |

|MONTHLY CAR PAYMENT (written on final sheet) |5 points |

11. SAVINGS PLAN 5 points

You need to set aside a part of your income to prepare yourself for the pitfalls in life and retirement. The goal of retirement planning is to achieve financial independence, so that the need to be gainfully employed is optional rather than a necessity.

The standard that many experts set is at least ten percent of your income. This is a good starting point. It is an easy way to start, because it is a set amount of money each month. It should not be that difficult to save ten percent of your income, but you may want to increase this amount over time.

Another common way to measure whether or not you are saving enough money is to check to see if you are saving until it hurts. If you feel like things are just a little bit tight, then you are saving a good enough. You may want to lighten up enough that you have breathing room in your budget, but tight enough that you still have to watch what you are spending each month.

10% of Net Income: ______________________

12. [pic] WORKSHEET FOR FUTURE HOME OWNERSHIP (Total for this part is 5 points) – You must develop a plan to buy your own home. Start planning now. Find three ads for homes for sale in your area. Determine (calculate) your minimum down payment and a monthly payment. What percent of you income will you need to set aside and save for the down payment?

|Three ads for a home | |

|Amount of down payment for your favorite house | |

HOMEOWNER’S INSURANCE, TAXES, and OTHER FEES – When you calculate your monthly payment, add the cost of Homeowner’s Insurance, Property Taxes, and other fees (i.e. Home Owners Association fees in certain neighborhoods.).

Cost of home $__________________

Down payment

(usually 10% or 20% of cost) __________________

Savings plan – $_____ per month for ________ years __________________

The entire project must be typewritten. Type the information on a paper, then attach your ads neatly. The ads may be photocopied for a neater appearance.

On the last page of your project, type the following information and compare your monthly expenses to your monthly income. (Don’t be surprised if your expenses exceed your income.)

TALLY SHEET

Total points for this page is 5 points

INCOME

Monthly Income x .85 = INCOME AFTER TAXES $________________

EXPENSES

Apartment rent: $ _______________

Cable TV _______________

Cell Phone _______________

Internet service _______________

Car payment _______________

Car insurance _______________

Food _______________

Gasoline _______________

Utilities _______________

Entertainment _______________

Clothing _______________

Savings _______________

Saving for Home _______________

TOTAL EXPENSES [pic] _____________ TOTAL INCOME [pic]_____________

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COVER SHEET-5 pts.

Name

Economics Class Period

Date

PROJECTED MONTHLY PAYMENTS:

Monthly mortgage payment $_________________

Homeowner’s

Insurance, property taxes) + $ ________________

(divide TOTAL into 12 monthly payments) $ _________________

Property Taxes $________________

(divide into 12 monthly payments) _________________

Other fees__________

__________________ _________________

TOTAL $_________________

(How does this compare to rent?)

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