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One of the most important lessons in economics is learning the importance of managingyour personal finances. Understanding the importance of credit scores, the ability to avoid economic scams, opportunity costs of decisions, and how to create and hold to a personal budget are critical life lessons. In this project, you will research and make decisions about your personal finances, while incorporating the information we have learned this semester. You will create a presentation as a final product that incorporates the following topics. The portfolio pages should be should be as visually appealing as possible – include charts, graphs, and pictures to enhance your presentation. Each section should be clearly divided.You will need to keep track of where you gathered the information in a bibliography. Besure to note the location where you received any outside information (and a copy of it ifpossible). All information used must be REAL information gained from research, not made up information. Be sure to cite all sources Also, use terminology learned in this course, with the correct definition, whereappropriate. If a term appears in the section, it must be included. All terms will appear in italics.Scenario:You have graduated college (or other post-graduation plans), and will now enter “the real world.” Please complete the following (again, using real information) – each in a separate section in your portfolio:1. Economic Biography: The first section should be an economic biography ofyou, including the human capital you have attained (education, job experience, etc.)Include the following in this section:i. Where you plan go to school?ii. What degree will you earn?iii. What is the job outlook for your degree (what is the likelihood of getting?Hired in the future)?iv. What is the opportunity cost of getting your degree? (Or if no degree, thecost of not getting a degree.) Actually use real numbers here – what wouldyou have been earning instead of going to college?2. College financing: How much did your training / degree cost? How was itfinanced? Be specific. You will need to talk to your parents to answer some ofthese questions. Include the following in this section:i. How much is the total cost of your degree? Include tuition, room, board,etc.ii. What is the opportunity cost of this choice – be specific, calculating howmuch you could have earned instead of going to school.iii. REGARDLESS of your college financing, complete the following:Using the total cost of college, including tuition and room and board,calculate how much a student loan would cost to cover this amount.Include interest rates, how long it would take to pay off, and what themonthly payments would be.iv. IF your parents are financing your college (or it is financed by collegescholarships), discuss the opportunity benefit you receive if from thisoutside financing – what options are now available to you that you wouldnot have if you had to finance your own degree?v. If you are paying for student loans, be sure to include this in your finalbudget.3. Job: Describe the entry-level job you are seeking and/or have obtained. Includerelevant information regarding benefits received, salary, and hours involved. UseREAL examples of jobs in this industry to gather your information, in the area ofthe nation you wish to live. If possible, gain this through an interview. Use realexamples of jobs available. If you cannot find a specific salary range, then use asite that gives a range and use the salary at the lowest end of the range. Documentall information. Include the following in this section:i. Job description and locationii. Salary (document where you received this information – should be entry levelsalary, so you cannot use a salary from a job that needs years ofexperience)iii. Benefits received – description (If you didn’t find a specific job, includethe average benefits received.)4. Home: You need to find a place to live in the area of the country where your jobwill be located. Find a REAL example of housing in which you would be willingto live. (Include pictures if possible.) Explain why you chose this option. Includeall relevant amenities. (Apartments do not come furnished. If it says the option isavailable, it is not part of the price quoted.) Include the monthly rent (if a house,include the mortgage type and mortgage payment – don’t forget to add in taxesand insurance). Include in this section:??Type and location of apartment / home??Rent or mortgage payment per month??Amenities included in the rent (just because it says it is available doesnot mean it is included)??Pictures??Insurance costs6. One-time Costs: Find out how much money you will need to pay up front foryour apartment. Set aside a budget to furnish your apartment – use some realexamples of prices for bedrooms, kitchen, living room furniture. What is yoursecurity deposit? First payment on apartment/home? (usually first and last)Include in this section:??First payment (usually first/last month’s rent)??Security deposit??Cost of basic furniture and dishes (bedroom, kitchen, living room)??Include pictures / website info7. Monthly Costs: Find out how much utilities, insurance, etc. will cost per month.Don’t forget all of the utilities: cable, internet, cell phone, gas, electric, water,heat, trash. Note: Just because an apartment states that it has high-speed internetdoes not mean it is free. You need to find out exactly what is included in the rent.??Cable??Internet??Cell phone??Land line??Electricity??Gas (Natural)8. Transportation: What type of vehicle will you have? What kind of downpayment did you have to pay? What are the payments? Include calculations of theloan amount and interest rates. What is the amount of the insurance? Parkingcosts? Gasoline costs? If you choose public transportation, research those costsand explain how this would affect your mobility. Use real numbers.??Type of vehicle (if applicable)1. Financing2. Loan amount3. Down payment4. Monthly payment?Maintenance costs (must set this aside)Try this site: costs (home / work, if any)?Estimate gas cost per month based on how much you think you willdrive. Use distance from home to work as a guide.?Type / cost of public transportation (if applicable)1. How does this affect your mobility?2. How far is this from your home?9. Choose a banking institution: Compare at least two banks and one credit union,using at least four different criteria. Introduce the section with a summary of yourdecision. Complete the decision matrix 10. Credit Cards: Compare a Visa/Mastercard, Discover Card, and AmericanExpress. Use at least four criteria for your decision card. Introduce the section with a summary of your decision. Also, include a discussion of the dangers of credit cards. If you choose not to have any credit cards, you need to explain why you made this choiceExplain the drawbacks of not having a credit card.12. Credit Score: What is a credit score? Explain how credit scores are calculatedand why they are important. Include: ??Definition??Explanation of the things they monitor to determine your score??How can you keep track of your credit score???What are the three credit reporting agencies???What do you do if there is an incorrect entry???How can you keep your credit score high?13. Economic Climate: If you were entering this job market today, describe theeconomic climate in which you would be entering. (Describe today’s economygenerally.) Use statistics in your description. Include:??GDP statistics??Unemployment statistics (US & where you plan on getting a job)??Inflation statistics??Consumer confidence??Future predictions14. The Budget: First, generally describe your budget choices, including what youwill do if you have any money left over. Then, use the final budget worksheet onMr Jackson’s website to organize a final monthly budget. Fill in the spreadsheetwith the information you have researched (change the worksheet as necessary).You may need to adjust your spending based on your budget. Include:??Overall description of your monthly spending and why.??Budget worksheet completed with the numbers you researched.15. Summary ( 1 page) : What did you learn from this project? How did the things we learned in class this semester apply to this “real life” simulation? What things surprisedyou, if any? ................
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