Financial Literacy Project (2)Name ______

Part II: Individual ResearchDue date______

Directions: Answer these questions as honestly and as truthfully as possible. Do your best to plan out what you think your answers will be in the future. Base your answers on your life ONCE YOU FINISH the job training/education you need to work your first “adult” job and are living on your own where you want to live.

I strongly recommend that you seek the advice of an adult, such as your dad, mom, older sibling, teacher, etc., and have a real discussion about the daily costs of living.

You must use the internet to search out the cost of living in different areas, salaries, and any other useful information. Be sure you are evaluating the credibility of a web site before you choose to use it.(Many of the sites we used for Part I are applicable to the questions below.)

Every time you see the word research,you must use and cite at least two credible sources. You will cite by providing parenthetical citations AND a works cited page.

You may handwrite or type this assignment. This assignment is worth 100 points.

  1. Upon completion of your job training/education needed for your career, where do you plan to live? Decide on the state as well as the area: city, town, country, suburbs. Use this information to guide you in finding the answers to the rest of the questions.
  2. When you begin your first job upon completing high school and/or your continuing education, what job will that be?

Researchthe starting salary for that job and record it.

  1. Determine your after-tax income using this formula:

A)Gross (before taxes) Monthly Income $______

B)Taxes (30% of A) $______(Multiply A by .3)

C)After-tax Monthly Income (A – B = C) $______

How much of your after-tax income will you save and/or invest each month? Explain your reasoning for your answer.

  1. What type of housing will you live in: house, apartment, trailer, condo, duplex, etc.? Will you rent or own? What size space?Research the housing availability and costs in your selected area. Research the cost per month for each of the following: rent or mortgage;utilities; insurance (owner or renter) (Look at the budget sheet (Part III) for specifics.)
  2. Do you plan on having a home phone or just a cell phone? Internet? Cable television? Research the cost of phone, internet, and television.Identify the pros and cons of the three options. Explain which provider you would choose and why.
  3. Plan to take at least one vacation. Where would you go? How many days stay?Research the cost of a vacation. (Include travel, lodging, food, and entertainment.)
  4. What kind of vehicle do you plan to own? New or used? Own or lease? What year? How much gas/diesel will you need each month?Research the cost of the vehicle. Include the average cost of monthly payments, gas, and insurance.
  5. Research the average cost of the following: health insurance; life insurance (term or whole life); disability insurance.
  6. Research checking and saving accounts at two different banks. Identify the pros and cons of each bank and explain which you would choose and why.
  7. Researchtwo different credit card accounts. Identify the pros and cons of eachand explain which you would choose and why.What will be in your wallet? 

Please remember, anytime that I ask you to research something, the expectation is that you will use at least two credible sources to find the information. I have linked to many helpful sites on my web site. I encourage you to make full use of them.