Consumer Education Entering The Real World Project Direction

Consumer Educationentering The Real World Projectdirectionscompile

Compile a professional portfolio which outlines the important consumer choices you will make after high school. Your portfolio should: -Be Professional in Appearance -Reflect Research -Reflect Financially Stability/Viability -Consumer Choices should Build Upon & Relate to One Another Materials: 1 inch Binder (required) Dividers & Page Protectors (suggested/optional) Information to Research Below is a list of all the items for your portfolio and the order in which they must appear. 1) College Choice & Costs: Research 3 colleges that you might attend, using the following resources. Websites: Books: College Navigator (National Center for Education Statistics) College Board College Matchmaker U.S. News Finding the Right School Peterson’s Four Year Colleges (R 378.73), Peterson’s Two Year Colleges (R 378.73), The 376 Best Colleges (R 378.73) For each of the schools, calculate the anticipated cost of attendance for 1 year-- expenses include: tuition & fees, room & board, textbooks, etc. Then, identify and explain which school would be your choice to attend. Other Considerations/Options: If your chosen profession requires a degree other than a Bachelor’s, such as a Certification, an Associates (2 yrs.) or an Advanced Degree (2-4 additional years beyond your Bachelor’s-- Masters, Doctorate, etc.) your portfolio should account for the cost of your circumstance. You may also consider military service or ROTC/training or trade school work immediately following high school. You may choose to split your education between a community college and a four year university. If you are unsure of what degree you plan to obtain at this time, assume you will complete a 4 year bachelor’s degree and multiply the 1 year cost by four. Now that you’ve identified a school you hope to attend, provide clear calculations of the total anticipated cost of college attendance for your portfolio. Then, provide an explanation of how you will fund your education. If you will require student loans, identify the amount and terms of your loan. Assume a 6.8% interest rate and length of the loan (a standard loan is 10 years, though you may require an extended 15 or 20 years repayment plan). College Choices & Costs (cont.) Using the website below, account for the cost of your monthly payments using the calculator below. For your portfolio, identify: loan balance, interest rate, loan term (length), monthly loan payment, number of payments, cumulative payments, and total interest paid. FinAid.org Financial Aid Calculator According to this calculator, what type of salary will you need to repay your loans on time? Does this change your college choice or intended career/employment pursuits? 2) Find a Job : Find a job that you would pursue after completing your higher education. Research and explain the requirements of the position you will choose as well as the average starting wage/salary. Clearly identify the yearly income as well as your anticipated monthly income. Please account for taxes being taken out of your income as well. Use the following website for your tax information: School Subscription Websites Career Cruising Username: lemont Password: careers Bureau of Labor Statistics: Occupational Outlook Handbook IL Dept. of Employment Security: Career Information System O*NET Online 3) Choose a Living Scenario: Consider where you will live upon graduation from high school and/or college. Choose an option below, or combination of options, which best fits your lifestyle plans. Provide an explanation of the reasons/benefits for your chosen living arrangement and include the length of time you anticipate the circumstances lasting. Reflect on the previous information from this portfolio (e.g. your student loans, budget, etc.) when determining the option and length of time you select. a. Option 1: You get a job and move out right away. Assume you have no personal savings and only source of income is your job. b. Option 2 : You decide to live with your parents for a while to save up money. Since you don’t have to pay rent , you will save 70% of your income. If you choose this option, how long will you live at home? c. Option 3 : You decide to live at home or with a friend and have to help pay rent for a while to save up money. In this situation you will save 50% of your income. If you choose this option, how long will you live paying rent? Note this option is not for splitting rent with a roommate in an apartment 4) Create a Projected Budget: Based on your yearly salary/income, student loan payments, and recommended percentages for spending (e.g. no more than 30% on housing) create a projected budget of monthly taxes, spending and saving. Use the Federal Income Tax Bracket data available online to calculate approximately how much you will be expected to in monthly taxes (see step 2). This budget is an estimate and should be used to help guide your decision making process regarding what you can afford when selecting a living scenario after college, housing (the first time you move out on your own), a vehicle, etc. Your expenses will likely change for your final budget as you do more research. See teacher for form. 5) Find Housing (Template) : Identify housing, rental or purchase, which suits your needs. This is your first “home†away from your parents/guardians in which you will be taking responsibility for rent, utilities, etc. Include a picture(s) of the property, address, rent/mortgage payment, security deposit (rent), or down payment (buy). What are the advantages and/or disadvantages of the property you’ve selected? Explain how the property suits your needs and clearly identify all costs in your portfolio. Suggested Resources in the table below. Real Estate Sites: , , , and 6) Living Costs : Determine costs associated with your housing. Include utilities (water, gas, electric, etc.), garbage pick-up, cable and internet costs, and a cell phone plan. Create a section in your binder showing what each of these will cost you. All costs should be clearly identified in your portfolio. Suggested Resources in the table below. Utility Estimator: CPS Energy—Home Energy Calculator Phone: , , Cable/Internet: , , Water & Garbage Costs: Vary by location-- use the National Average $85 for each 7) Choose a vehicle (Template): To meet your transportation needs, choose a vehicle to purchase or lease. Your vehicle may be new or used. Include a picture(s), total price of the vehicle, terms of your loan/lease monthly payments, standard warranty, annual fuel costs, city vs. hwy mpg, and insurance costs. Break down your annual fuel costs and insurance costs into a monthly rate for your monthly budget. Suggested Resources in the table below. Vehicles: , , , , , , etc. Fuel Info : Financing Payment Info : (click on finance) Assume a sales tax rate of 7.25% Standard loans range from 36-60 months Insurance: Per Month Compact car: $85 (Honda Fit, Ford Focus) Mid-Size Car: $100 (Toyota Camry, Chevy Malibu) Sport Utility: $110 (Ford Escape, Dodge Journey) Luxury Car: $155 (Audi A4, BMW 3 Series) Sports Car: $170 (Ford Mustang, Subaru STI) 8) Choose two credit cards : Select two credit cards: one general purpose card and one private label card. Include a picture of the card and identify its terms of use including: APR, incentives, annual fees, etc. You need to get a picture of the card and find additional information on the card (APR, incentives, annual fees, etc.). Provide an explanation of why you chose each card. Suggested Resources in the table below. General Purpose Cards: Private Label Cards: 9) Prepare a monthly food calendar (Template): Plan a month of meals (breakfast, lunch, dinner, & any snacking) to determine your monthly food budget for groceries and restaurants. Your portfolio should include a printed monthly calendar (3 basic meals--breakfast, lunch, & dinner-- as well as snacks--chips, ice cream, coffee, etc.) and an itemized grocery list (with prices). Calculate the cost of the food you list by visiting the store (most accurate/realistic) or using the internet. Suggested Resources in the table below. Groceries: , , , See your teacher for a calendar or create/type one yourself. 10) Variable Costs: In addition to recurring monthly costs, you will have additional expenses over the course of a year. Create a list of items that you will need to purchase periodically (e.g. entertainment, hobbies, gifts, car repairs, etc.) and estimate their costs—including a monthly breakdown for savings. 11) Create a Finalized Budget: Reflect on all the information in the previous sections to create a finalized budget outlining your monthly spending. This budget is an opposite of your projected budget as it now accounts for the money you actually spend. See teacher for a new budget form and make necessary changes to reflect your actual spending. 12) Reflection: Create a minimum 1-page double spaced document with 1” margins and 12 point font explaining what you learned through the process of completing your portfolio. Review your entire portfolio and comment on your learning in as many sections as possible. Through your reflection, you should at minimum address the following questions: -Was your projected budget similar or different from your actual budget? -What were the differences/similarities between your projected and finalized budgets? -How much money did you spend? -How much money will you have left to save or invest? -What were you most surprised by during this process? -Did you feel confident about the decisions you made or would you still change certain items? Remember: You will receive a grade for this assignment, but this project is designed to benefit YOU ! The research and content created are intended to help you set an achievable plan for your future, college years and beyond. “Entering the Real World†Rubric Content Rubric: This rubric will be used to grade the content of the information in each section of your binder. Excellent 10 Points Good 8 Points Average 7 Points Below Average 5 Points Poor 3 Points Did Not Complete 0 Points Did Not Complete 0 Points Overall Appearance of the Binder (colorful, creative, and good use of space and pictures) One Page Project Reflection Total Score _____/50 Overall Score _______/200 Projected Project Timeline Project Component Projected Completion Date College Choices and Tuition Costs Finding a Job Projected Budget Finding Housing Living Costs Choosing a Vehicle Choosing a Credit Card Monthly Food Calendar Variable Costs Finalized Budget Reflection Paper

Paper For Above instruction

The transition from high school to adult independence involves making crucial consumer decisions that significantly impact one’s financial stability and future well-being. This comprehensive project guides students through the process of planning for life after high school by developing a detailed portfolio that explores educational choices, career options, financial planning, housing, transportation, and personal budgeting. By engaging in this exercise, students will learn to evaluate costs, understand financial commitments, and develop responsible consumer habits that will serve them well beyond their teenage years.

Introduction

Many students lack a thorough understanding of the financial implications associated with post-secondary education and independent living. The purpose of this project is to familiarize students with real-world consumer decision-making, fostering skills in research, budgeting, and long-term planning. The culminating portfolio will not only serve as a reference tool for future decision-making but also promote financial literacy, responsibility, and preparedness for adult life.

Educational Planning and Associated Costs

The initial phase involves researching college options, calculating total costs of attendance, and determining funding strategies. Students are encouraged to select three colleges using various reputable sources such as College Navigator, College Board, and U.S. News. For each institution, students must estimate the annual expenses, including tuition, fees, room and board, and textbooks. This detailed financial picture helps students compare different schools and make informed decisions aligned with their career goals and financial circumstances.

Moreover, students should consider the potential need for advanced degrees or vocational training, as this impacts overall educational costs and planning. The exercise necessitates calculating total borrowing needs if student loans are required, including interest rates, loan terms, and monthly repayment amounts using online calculators like FinAid.org. This comprehensive analysis ensures students understand the importance of manageable debt and its influence on future career choices and salary requirements.

Career Exploration and Income Estimation

Following educational planning, students explore potential careers related to their interests and educational paths. By researching job requirements, necessary qualifications, and expected starting salaries, students gain insight into the income they can anticipate. Incorporating tax considerations and approximate take-home pay helps students realistically assess their earning potential and how it influences their ability to manage expenses and loan repayments. This step emphasizes the link between educational investment and earning capacity.

Living Arrangements and Cost Analysis

Living scenarios are crucial in budgeting and financial planning. Students analyze different options: living independently immediately after graduation, living with parents to save money, or sharing expenses with roommates. By projecting the duration and costs of each scenario, students understand the financial benefits and challenges of each choice. They must also factor in rent, utilities, and other recurring costs, making informed decisions about the most sustainable living arrangement.

Financial Budgeting and Expense Management

Based on their anticipated income, students create detailed monthly budgets that include taxes, housing, transportation, food, insurance, and variable expenses like entertainment and personal items. Using federal tax brackets, students estimate monthly tax deductions to develop a realistic budget. This exercise helps students prioritize spending, identify savings opportunities, and avoid overextending financially.

Further, students select suitable housing options and transportation methods, including purchasing or leasing vehicles. They evaluate costs such as vehicle price, loan terms, insurance, and fuel expenses, ensuring their budgets reflect true costs. Students also choose credit cards to understand credit management, compare terms, and develop responsible credit use habits.

Food and Variable Expenses

Planning monthly meal budgets and estimating grocery costs fosters mindful spending on essentials. Students prepare meal calendars, itemized grocery lists, and cost calculations based on real store prices or online resources. Additionally, variable expenses like entertainment, hobbies, and gifts are accounted for to create a comprehensive view of annual spending.

Final Budget and Reflection

Combining all previous data, students prepare a final, realistic monthly budget that reflects actual expected expenses. This step allows for adjustments based on research and personal decisions. The reflection paper prompts students to analyze discrepancies between projected and actual budgets, evaluate their spending, and consider future financial strategies. This introspective exercise encourages responsibility, foresight, and adaptability in financial planning.

Conclusion

Completing this portfolio equips students with foundational financial literacy skills essential for adult independence. By integrating research, budgeting, and strategic decision-making, students gain confidence in managing their finances, making informed consumer choices, and planning for a successful future. These skills are vital for navigating the complexities of adult life and achieving financial stability and personal fulfillment.

References

• FinAid.org. (n.d.). Student Loan and Financial Aid Calculators. https://www.finaid.org/calculators/
• U.S. Bureau of Labor Statistics. (2023). Occupational Outlook Handbook. https://www.bls.gov/ooh/
• College Board. (2023). College Cost Calculators. https://bigfuture.collegeboard.org/
• National Center for Education Statistics. (2023). College Navigator. https://nces.ed.gov/collegenavigator/
• Peterson’s. (2023). College Cost and Planning Resources. https://www.petersons.com/
• Federal Income Tax Brackets. (2023). IRS Publication. https://www.irs.gov/
• U.S. News & World Report. (2023). Best Colleges Rankings. https://www.usnews.com/best-colleges
• Bureau of Labor Statistics. (2023). Occupational Outlook Handbook. https://www.bls.gov/ooh/
• IL Department of Employment Security. (2023). Career Information System. https://www2.illinois.gov/employ/careersystem/
• Real Estate Websites (Various). Including Zillow, Realtor.com, Redfin for housing options.