Name: ______Date: ______

Ms. DagroEconomics

Final Project  Living in the Real World

This project will count as 50% of your final exam. You cannot pass the final exam if you do not complete this project. This project will cover many of the topics we studied this semester. It will also help guide you when you enter the real world.

The project must be completed in this packet and must be handwritten. Anything not in this packet or typed will not be accepted. DO NOT LOSE THIS PACKET…YOU WILL NOT BE SUPPLIED WITH ANOTHER ONE!

This project is due on ______, ______.

There are seven (7) steps to the project and all must be completed. In order to begin, you must choose a career and get it approved by Ms. Dagro.

Career Chosen ______

Approved by Ms. Tschan ______

Once you have chosen a career and it has been approved, you can turn to the next page and begin your project! Have fun and good luck!

Part I  Career Information (4points)

To find this information, you can either use the computer or the career books provided. If there are not computers available, you must use the books…no exceptions.

The career I chose was ______.

In paragraph form answer the following questions…

1. What are the responsibilities and duties of your position? What do you do everyday?

2. What training is required for this career?

3. Do you need to go to college?

4. Do you need a master’s Degree or PhD to advance? Explain.

5. Is there hands-on training required? Explain.

6. Are there any mandatory tests you must pass? What are they?

7. What is the average starting salary? (This number will be the lowest in the range that you find – one resource you can use is

8. What is the maximum position you can attain or is it a “dead end” job? What is the maximum salary?

Use the lines provided to write your paragraph.

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Part II  Calculating your taxes (14 points)

Based on your starting salary, you will need to find out what tax bracket you fall into and what your taxes will be. Use the tax tables and information packets provided to you during the tax unit to do this. It is essential you understand what taxes will be taken out and what your net income (income after taxes) will be in order to complete the next part of the project. Make sure you show all work for each part in order to receive full credit. Assume your starting salary is also your taxable income.

  1. How much of your salary will go to federal income tax?
  1. How much of your salary will go to state income tax?
  1. How much of your salary will go to local income tax?
  1. How much will you pay toFICA (6.2%)?
  1. How much will you pay to Medicare (1.45%)?
  1. What will your net salary be every two (2) weeks? To calculate this number add all of your taxes together (5 numbers) and subtract that number from your starting salary. Once you have that number, divide it by 24.
  1. What will your net salary be for the month  to get this number take the answer from #6 and multiply it by 2.

Part III Apartment Hunting (6 points)

In order to plan your budget, you must find housing that is affordable to you based on your monthly income. In order to do this you can use the Internet and the Classifieds in the newspaper to find an apartment. Make sure you attach the ad in the correct space below. You must live on Long Island or in New York City.

  1. Cut the ad from the newspaper or website and paste it in the spot below.
  1. How much does this apartment cost per month?
  1. Are utilities included? If not, what will they cost you? (electric, water, heat)
  1. Describe the apartment.
  1. Where is it located?
  1. Why did you choose this apartment?

Part IV  Monthly Bills (4 points)

In order to plan your budget, you must determine your fixed monthly expenses. You have determined one (your rent) on the previous page. Now you must research more here. Complete the following 2 pages in order to determine your monthly bills.

Car Insurance

Use the following resource to find a car insurance quote that works for you. You must have your own policy; you cannot be on a plan with your parents.

When you enter this website you are using the scrolling numbers at the right of the screen…

Make sure you calculate the number for one month and not six months or one year. In order to do this, keep the following in mind:

  • If the number you see is $100-$200 than it is probably a monthly quote
  • If the number you see is several hundred dollars it is probably a 6 month quote and you have to divide that number by 6 to get a monthly quote
  • If the number is close to $1000 or over, this is probably a quote for the year and that number must be divided by 12 to get a monthly quote

My car insurance will cost me $______per month

Cell Phone

You can either use your current cell phone plan to fill in this part of the project or use the following resources to find a plan that works for you. You must have your own plan though. You cannot be on one with your parents.

My cell phone bill will cost me $______per month

Food

Use this space to determine approximately how much you will have to spend on groceries a month. You can either go online to determine what your groceries would cost or you can use circulars that come to your house.

Enter your zip code and go! – Stop and Shop

Choose delivery or pick-up, a store location, and then go!

My groceries will cost me approximately $______per month

Cable

Use this space and these resources to determine your cable bill. Please keep in mind the location of your apartment. If you are on Long Island you will be using Optimum or Cablevision. If you are in the city, you will be using Time Warner.

My cable with cost me $______per month

Part V  Monthly Budget(10 points )

Based on your net income and the expenses you have already calculated create a budget for the month. The budget should be as realistic as possible. Make sure that your “total” budget is equal to your net income. You cannot be over or under. If you are over you must cut your expenses somewhere, if you are under you can always save more!

Expenses / Amount Budgeted for this Expense
Rent
Utilities (electric water, heat, or is it included in the rent?)
Car Insurance
Gasoline (for car)
Cable
Cell Phone
Food (Groceries)
Entertainment (money to go out – this can include dinner out)
Miscellaneous (gifts, vacations, clothes, etc.)
Saving/Investment Money
Total $

Does your salary allow you to live the kind of lifestyle you would like to have? Why or why not?

What are some strategies you can use that might enable you to have the type of lifestyle you want? (If you are happy with your current lifestyle, indicate the types of things you can do to save/invest more money)

Part VI  Choose a credit card (2 points)

You now must choose a credit card that would best fit your needs. You must choose a credit card; you do not have the option of not having one. You can use the resources below.

Which credit card did you choose?

What is the APR on purchases? (Make sure you indicate if they offer a different APR in the beginning and then it changes)

Is there a rewards program? If so, what does it entail?

What made you choose this card? Why?

Part VII  Writing Checks (10points)

On the next couple of pages, you must keep track of your expenses by keeping a check register, depositing your paychecks, and writing checks to pay your bills. You will be writing 4 checks and one deposit slip as you are keeping a record in your register. Follow the directions below to successfully become in charge of your finances.

  • Write the beginning balance in your check register by recording your two week net salary number in the appropriate space (see part II for this number).
  • Write a check to your landlord to pay your rent (see part III for this information). Then record that check in your register and balance your check book.
  • Deposit a paycheck in your account by recording your two week net salary number and then balance your checkbook. Make sure you fill out the deposit slip.
  • Write a check to the cell phone company to pay your phone bill (see part IV). Then record that check in your register and balance your checkbook.
  • Write a check for your car insurance bill (see part IV). Then record that check in your register and balance your checkbook.
  • Write a check to pay your cable bill (see part IV). Then record that check in your register and balance your checkbook.

You should bring the following materials with you this week…

  • Your final project packet
  • The newspaper
  • Supermarket circulars
  • Tax tables
  • Calculating taxes “notes”
  • Calculator