Consumer Economics Project Requirements

Objective

This budget project is designed to assist students in considering their financial future.The project consists of various “real world” situations/decisions one will be faced with once entering the workforce.The student will create a budget that demonstrates what they feel is the best use of their income.Many of the activities require the student to research information and some even require them to go into various institutions to obtain applications.You are required to show tangible evidence of your research!This may include online sources, newspaper clippings, bill receipts, apartment applications, utility estimates, etc.

You must have your project divided in the following categories AND IN THE FOLLOWING ORDER:

  • Job
  • Financial Institution
  • Housing
  • Transportation
  • Gas and Car Maintenance
  • Insurance
  • Utilities
  • Budget Worksheet

CALIFORNIA Standard ECON-5:The student will demonstrate an understanding of how personal financialdecisions affect an individual’s present and future economic status.

Basic Format:

  • Everything should betyped.
  • There should be aTitle Pagethat lists the student’s name, name of school, class, class period, school year, and date turned in to your government teacher.
  • Screen shot all verification pages.
  • Each activity page should benumberedandcorrespond to the table of contentspage(Table of Contents Required).

!!!!!WARNING: Do not use your social security number or birthdate on any forms/applications!!!!!

Jobs

Activity 1

Students must research potential jobs. This is particularly important for those going to college this fall.

If you are accepting Work Study aid, research the potential jobs on your school campus that you may be placed. Also, research potential jobs OUTSIDE of your college, and analyze whether it may benefit you to acquire one of these as soon as possible.

Each student will be expected to compute the amount of federal taxes, state taxes and FICA taxes to be subtracted from the gross pay to arrive at the net pay (see the “Computation Chart).

Requirements:

Research 2 college jobs, AND two outside jobs. Provide a job description for each, including responsibilities, hours, pay, etc.

Note resources used to obtain information about this specific career.

Complete a sample copy of a W4 form (

  1. Research potential jobs

Helpful Links

If you are unsure of what career you want, take the career test on Career Path.

  • Start with your university website. Browse around for info there.
  • Use Google searches intelligently. Remember that key words mean better results.
  • If you have no clue what you want to do, this site can help you explore different career fields.
  • Career Path
  1. Complete W-4 form

Click on “W-4 form”

Help available from the IRS

Check to see if you will file taxes on your own, or if you will still be a dependent HERE

  1. Compute your taxes of your “hypothetical income.”


Banking

Activity 2

FINANCIAL INSTITUTION
Students will research at least three different financial institutions (at least one must be a credit union) that they would be interested in depositing their salary/wages. They will then choose the bank or credit union that best meets their goals and fill out an application for an account at that institution. They will tell why they have chosen this particular bank, and they will indicate which services they will use at the bank.

Requirements:

  • Create a comparison chart for all three institutions based on the following:
  • checking account fees and/or requirements, online banking services, savings account fees and/or reqs, ATM availability, and other banking services offered.
  • Find and list fees for other services, interest rates, overdraft protection, and limits on accounts.
  • Identify if the bank is a member of the FDIC.

Checking and Savings

  • Bank of America
  • BB&T
  • Heritage Trust
  • Suntrust
  • First Federal
  • Wells Fargo

Student Loan

  • Financial Aid Loan Calculator

Housing

Activity 3

Students will find adequate housing by renting an apartment or other housing (i.e. condo, house). You may share an apartment withONEother person. You cannot be living rent free with family or friends. You are allowed to choose a city other than your hometown.

Requirements:

  • List what services/benefits are included in the rent, the location of the apartment, and other information necessary for housing.
  • Sample apartment add or application.
  • If sharing an apartment with a fellow classmate, you must give their name.

Helpful links

  • Padmapper - visual of available units online

Site

  • Trulia
  • Try google searching property management companies in your city. (tryYelp! too)
  • Try your university's housing resources!

Transportation

Activity 4

Students will investigate the purchase of a vehicle. They should look into buying or leasing a vehicle. The monthly car payment will be included after it is set by the car dealership or the bank that is financing the loan for the car. Factors to be considered in buying a vehicle would be the current interest rates on car loans, the cost of a certain vehicle, the reliability of a used vs. new vehicle, taxes on the vehicle purchased, and the impact of the monthly payment on their budget. Additionally, the student should determine the property tax associated with their vehicle and include that in their budget.

***NOTE: The student will assume that they have no vehicle when they leave school. This may not happen in someone’s actual experience; but for the purposes of this project, everyone must purchase/finance a vehicle. ***

Requirements

  • Completed sample loan application from a car dealership/financial institution.
  • Information on current interest rates for car loans.
  • One should also include personal property taxes for your vehicle.
  • YOUR PROPERTY TAXE RATE SHOULD REFLECT THE CITY YOU ARE LIVING IN (i.e. if you live and work in the City of North Charleston, then your tax rate should be from Charleston County.

Helpful links

Car Dealerships

  • Carmax
  • Look up the websites of the car makers you are interested in.

Loans

  • Auto Loan Calculator

Taxes

  • Look up the county where you plan to live:

DMV

Gas Consumption/Car Maintenance

Activity 5

Gasoline consumption is a required expense for most individuals so related expenses must be considered. In addition to considering how much gas will be used, the student should determine which gas station will be used and why. In addition to gas consumption, the student will include estimated maintenance costs associated with their particular vehicle. Remember to consider factors such as age, type, or model of the car when determining the monthly amount to set aside.

Requirements

List approximately how many miles will be driven per week. When considering how far to drive to work, refer to the location of the company desired and the location of living arrangements. Also, consider visits to the grocery store, visits to friends/relatives, entertainment, etc.

List how many miles per gallon you car averages.

List estimated maintenance costs and a brief explanation

Helpful links

  • Gas Buddy
  • Gas Prices at Mapquest

Insurance

Activity 6

Students will need to secure insurance on the vehicle they purchased. Explain why you chose to go with the insurance company you did. You cannot use the uninsured motorist fee at DMV. ALSO students will need to secure renters’ insurance for personal belongings in their apartment in case something happens.
***In addition, students must show health insurance benefits from their university.

Requirements:

Name of the insurance company, coverage listed on the vehicle, and the monthly cost of the policy.

Obtain the same information above for renter’s insurance.

Provide evidence of a health insurance policy and its coverage.

Helpful links

Auto Insurance

  • Start your research at the California Insurance Commission

Renters Insurance

  • Same here

Utilities

Activity 7

List utilities that you will be responsible for that are not included in the housing arrangement. These may include, but are not limited to, telephone (landline and/or cell phone), cable, online services, electricity, trash, water, and others. If you choose not to have a service, you need to mention that in your report and discuss your alternative plans on how to meet that need in order to receive full credit.

Requirements

* List the company, the monthly costs and particular services provided (such as minutes included for cell phones) and other necessary information. Verification must be shown to prove the figures used. If you are using a bill of your parents’, be certain to adjust to your circumstances and explain how you came up with the figure you did.

Helpful links

  • Sprint
  • Verizon Wireless
  • AT&T
  • Comcast
  • TimeWarner Cable
  • Look up your city's utilities by doing simple Google searches!!

Budget Sheet

The student will be expected to develop a personal budget that integrates all of the above activities. The budget should be placed at the back of the booklet, and IT MUST BALANCE! We will working on this together.

Helpful links

*Listed below there are a few websites that may provide some general financial help in setting up a budget and tips for saving money, etc.*

  • The Clark Howard Show
  • Crown Financial Ministries
  • Dave Ramsey
  • Money Central (from MSN.com)
  • Personal Budgeting Tips
  • Reader’s Digest Living (Money)