Personal Finance Realization Project

Transcription

1 Personal Finance Realization Project Please READ before answering any questions. You must answer the questions in essay form (Times New Roman, 12-pt, double-spaced with reference/citation [MLA form]), and submit on paper. See the Quia calendar for due date! I. In what occupation do you plan to serve in the future? (I understand you are a teenager, and you may not know for certain at this point; however, until you decide, what do you plan to do to earn income?) A. If you plan to attend college, how much will that cost? If you are interested in multiple schools, list your top four, cost per year, and cost for all four years? *Note* Total cost of attendance is higher than tuition cost. If your career choice requires graduate school or more, provide the total cost of attendance (tuition, room and board, meal plan, etc). In your essay, be sure to break down the cost of each charge for undergrad, graduate, and post graduate. How long will it take for you to begin work in this profession? Use this link, or Schools Annual Tuition Cost Annual Total Cost of Attendance Total Undergraduate Cost B. If you plan to learn a trade, what is the average cost of trade school? C. If you want to become an entrepreneur, describe the industry. Also, describe how you will plan to enter this profession. What are the startup costs (capital), risks, and returns? Be sure to cite references. What is the realistic average time to begin making sustainable income?

2 D. If you plan to go into the military, what are the requirements, what induction of the military, how much will you earn? If you plan to do military and college, how much exactly will the military pay for college? E. If your plan to go directly into the workforce, describe what you plan to do, and express (realistically) how much you will be paid. Visit, to find your expected salary. For someone starting in this profession, it is LIKELY one will find earning the entry salary (lowest). 1. What is the starting salary? 2. What is the average? 3. What is the highest? II. Recall the term econometric the study of economics data, i.e., criminal statistics, income, test scores, sociology, psychology, etc. Using the Atlanta School Guide Book (you will receive this book from me in class), what data would you use to determine an area to buy a house and raise children? Why did you choose this system? III. Based on the area you have chosen to live, find a place to live. Do you plan to rent or own? If you plan to rent, use the Atlanta Apartment Magazine to find a place to live. Where do you plan to live? Do you need a car, or is public transportation offered? Based on your salary, can you afford to live here? If not, find another geographic area. Why did you choose this area?

3 If you plan to own (take out mortgage), how much can you afford? Based on your salary, can you afford to live here? If not, find another geographic area. Why did you choose this area? Use the link below, to gather an idea of how much you can borrow. Do not forget to factor the amount you plan to put down. Find home values using By Owner, Metro Brokers, Keller Williams, Century 21, etc. IV. Living & Planning Research, and write the average monthly cost for the following: Rent/Mortgage (the mortgage amount researched will not include taxes and insurance, so add 15% of the mortgage to the monthly payment). Car Note/Public Transportation (If you choose a car, you must write the amount you need to save each month until you have enough cash to buy a car). Gas for car Car maintenance (oil, changes, brakes, air conditioning, tires, etc.) Car Insurance Electricity Natural Gas Water

4 Cell Phone Land line phone Internet Food Clothing (new clothes/washing/cleaners) Recreation/Travel/Entertainment (movies, eating out, traveling, amusement parks, books, video games, arts & crafts, etc) Monthly savings (retirement) Savings (immediate cash for emergencies) Healthcare (this amount also includes doctor s visits, emergency visits, etc.) $250 Personal items (deodorant, toothpaste, soap, hair, make-up, haircuts, hair do s, etc.) Student Loans/Trade school loans Credit Cards/Department Store Cards $250 Total To determine your monthly student loan payment, use the link below. To determine your monthly car note, use the link below. The beginning salary you researched is your gross. Use this link to determine your net pay. Use 6% for the Georgia Tax Rate. V. Evaluation and Realization (Explain what you learned from this activity)

5 I. Career For college students, calculate your student loan repayment for your all years of college (undergrad, masters, doctorate) Based on your starting salary, you can extend your repayment schedule to a max of 20 years. For trade school participants, explain how you will advance in your chosen career. For military personnel, explain how one advances in the military, and/or how you will use the military to move into another field. For future entrepreneurs, explain your business plan. Research a person who is successful in this industry. Describe his/her challenges. If you simply plan to enter the workforce, what do you plan to do? Describe this job? What is the average salary for someone in this profession? II. Collegiate Demographics (ALL must answer) 1. What percentage of African-American students graduate from college (at traditional universities and HBCUs)? Discuss reasons why this number is not higher at both.

6 2. What percentage of Latino-Americans students graduate from college? Graduation-Rates-Threaten-US-Attainment-Goals 3. What percentage of Asian-Americans students graduate from college? III. Salary Based on your career choice(s), provide your starting (beginning) salary, average salary, and high-end salary. The salary given is your gross pay. Define gross pay, net pay, and discretionary income. Visit the website below to determine your net pay. Use 6% for the Georgia Tax Rate. IV. Demographics & Community (ALL must answer) In answering the questions below (also using links below) you must use the following terms in your description: safety net, human capital, specialization, self-interest, standard of living, economic system, money creation, net worth, scarcity, economics, opportunity costs, econometrics, tradeoffs, and thinking at the margin. READ Carefully!! 1. What is the purpose of the U.S. Census? 2. Based on the 2014 U.S. Census, what is the population of the United States? What percent of the United States population has at least a bachelor s degree? 3. What percent are White, African-American/Black, Latino, and Asian? What percent of American businesses does each demographic own? 4. Based on the 2014 U.S. Census, what is the population of Georgia? Clayton County, Ga? What percent of the Clayton County population has at least a bachelor s degree? What percent of Clayton County, Ga residents live below the poverty rate? 5. In Clayton County, Ga, what percent are White, African-American/Black, Latino, and Asian? 6. Discuss the crime rate of Clayton County, Ga in comparison to the U.S. average.

7 V. Your Role Using the above demographic data (salary, crime, education, etc), what will you contribute to your community? What plan of action can be employed to build a strong economic system within your community? How can a community improve the businesses, the neighborhoods, and most importantly, the children the leaders of tomorrow?