Many students dream of the day that they will purchase... move out on their own. What does it cost...

Name _________________________________________
Many students dream of the day that they will purchase their first car and the day that they will
move out on their own. What does it cost to do these things? This lesson will help you plan
and prepare for the things that you want, and will help you make sound economic decisions in
the future.
You will complete the four tasks:
1.
2.
3.
4.
Compare the costs of apartments
Analyze the costs of getting automobile loans
Calculate the cost of food and entertainment
Calculate how much money you would need in order to
pay for an apartment, car, food, and entertainment.
Go to www.apartments.com and find the following information. You will be looking for a 1
bedroom apartment in Denton (zip code – 76210, 76205, 76201):
1.
2.
3.
4.
5.
Name of the apartment complex
Rent per month
Amount of security deposit
Parking Fee
Total cost for 1 year (including deposit and parking fee)
Fill in the information listed on the table below:
Name _________________________________________
Name of
Apartment
Complex
Rent per
month
Amt. of
security
deposit
Parking Fee
(indicate
garage, carport
or lot)
Total cost for 1
year (including
deposit and
parking)
1
2
3
***HINT*** When figuring Total yearly cost, multiply monthly amounts by 12
Answer the following questions using your car information:
1. Which apartment has the most expensive rent? The least expensive rent?
2. How much does it cost to rent each apartment for one year? (Be sure to include the
cost of the security deposit and parking.)
3. Compare the cost of renting the most expensive and the lease expensive apartments.
What is the difference in rental costs for one month? For one year? What do you think
accounts for the difference in prices among the three apartments?
4. If you were making a decision about which of these apartments to rent, what factors, in
addition to cost, might you consider?
Name _________________________________________
Go to www.cars.com and choose three cars to research. You may search used or new. To
complete the car loan table below, open the Car Loan Calculator in the Assignment Box. Use
the information below to find your car payment information.
For a Used Car –
3 Years – Interest Rate 2.99%
4 Years – Interest Rate 2.84%
5 Years – Interest Rate 2.75%
For a New Car -
3 Years – Interest Rate 3.85%
4 Years – Interest Rate 3.52%
5 Years – Interest Rate 3.17%
1)
For all three cars, assume you will take out a 3 year loan. Fill in the tables below for the
different loan terms.
3 Year Loan
Car Make,
Model and
Year
Loan Amount
Total Interest
Total Cost of
Loan
Total Interest
Total Cost of
Loan
Monthly
Payment
Car A
Car B
Car C
2) Now repeat #1, using 4 years as the loan term:
4 Year Loan
Car A
Car B
Car C
Car Make,
Model and
Year
Loan Amount
Monthly
Payment
Name _________________________________________
3) Now repeat #1, using 5 years as the loan term
5 Year Loan
Car Make,
Model and
Year
Loan Amount
Total Interest
Total Cost of
Loan
Monthly
Payment
Car A
Car B
Car C
***Please note: all car owners are also responsible for paying for gasoline, car maintenance,
and auto insurance. ***
Answer the following questions using your car information:
1. What is the monthly payment for car A for 3 years? 4 years? 5 years?
2. What is the difference in the Total Cost of Loan for car A and car B for 3 years?
3. For car B, what is the difference in the Total Cost of Loan for a 3 year loan and a 5 year
loan?
4. What is the difference in Total Interest for car C for a 3 year loan and a 5 year loan?
5. What is the advantage of a 3 year loan compared to a 5 year loan? What is the
disadvantage?
Name _________________________________________
Let’s assume you spend about $45 a week at the grocery store for
yourself. This price will vary depending on the week and what you
need.
Going out to eat costs a bit more. Go to your favorite restaurant’s website and calculate
roughly what it would cost you to eat there once a week. How much would it cost for a month?
Find 3 things to do in Denton. Go to www.discoverdenton.com and check out the different
activities and the cost associated with each activity. Calculate how much it will cost you per
week and month if you did 3 activities per week. ***Your activities can be FREE***
Include your finding for food and entertainment in the table below:
Food/Entertainment
Grocery
Restaurant 1
Restaurant 2
Restaurant 3
Activity 1
Activity 2
Activity 3
Total Cost
Food/Entertainment
Name
Cost
N/A
$45
Monthly Cost
(4 wks)
Name _________________________________________
Complete the table below using the least expensive values from the Apartment Hunting and Car
Loans tables. Also use your total for your monthly Food and Entertainment table.
Housing
Car
Food/Entertainment
Totals
Answer the Following Questions:
1. In order to meet your minimum needs, how much would you need to earn (after taxes):
Weekly?
Monthly?
Yearly?
2. If you worked 40 hours per week, how much would you need to earn per hour in order
to cover your expenses? What if you only worked 25 hours per week?
40 hours = ____________________
25 hours = _______________________
3. What other expenses could you incur during the month?
4. What changes or decisions could you make in order to lower your basic expenses?