The Process
Download this MEM PPT template on which to record your information. Be sure to rename it, and save it to your local folder (H)
Step 1: Choose a job
Many statistics state that the amount and quality of your education is a strong determinate for what jobs/careers will be available to you. At one time, that meant COLLEGE. Now, it includes many specialized trainings, apprenticeships, and certifications. (Still, its WHAT YOU KNOW that can impress an employer.) With this in mind, you will first figure your gradepoint average, which right now is your only proof of "job experience"(download the gradepoint worksheet) and then choose a job according to your GPA from these Reality Store Careers choices. You can also find your "Gross Yearly Income" on this list. Please choose one from this list. It will be needed for Reality Store in March.
Use the online resources provided on the RESOURCES page to research the job, and list these things on a PPT:
*Job Title
*The gross yearly salary
*A summary of what the job duties are
*How much education/training is needed
*The demand for the job.
*A picture showing the job. You can get this information on your "Career Inventory Sheet" you did with guidance, http://www.indianacareerexplorer.org/ or you can go back to that site to find it again. In case you need the guidance Career Assessment Sheet, click here.
Step 2: Figure your monthly NET income
*Open the Excel Spreadsheet that will calculate your Net Monthly Income (take home pay). Be sure to fill in just the two yellow areas. The rest will fill in automatically. Then save it on your computer under a new name. You will export this to your PPT.
*Take that Net Monthly Pay and do the "Reality Store Budget Planning Sheet". This sheet gives you an estimate of what percentage part of your income should go for certain expenses.
*Since we will be using Financial terms and Excel spreadsheeting, here is a vocabulary list that may come in handy. You will doing the main terms on your MEM PPT. (You will have vocabulary each day to list in your "Making Ends Meet" PPT) Then main terms include BUDGET, GROSS INCOME, NET INCOME, and then the deductions taken out of your paycheck (Federal, State, County/City Taxes, FICA (Social Security and Medicare), and Annuities) Don't forget to either snip a copy of your Step 2 Excel Spreadsheet that figured your MONTHLY NET INCOME, or list the items from it on a Slide.
Step 3: Choose a house/apartment that fits in your budget
a. Background information: Hopefully, some day you will have a house. You will have to take out a MORTGAGE to purchase the house, since most people don't have a huge amount of money just laying around AND most people want the tax break that comes with a mortgage. Here's how it works:
1. You find a house or property
2. You talk to a bank or loan company, and they give you the total money, with the understanding that you will pay the money back monthly. (This part is called the PRINCIPAL)
3. Although the bank is very friendly, they will charge you extra money because they are giving a loan. (This money is called the INTEREST)
4. Most people take at 15-30 years to pay off a house and its interest.
*So, to recap, a MORTGAGE is a LOAN on PROPERTY (Property the bank can take away from you if you don't pay your monthly payment) in which you pay for the house and interest monthly until the house and interest are paid in full. If you DON'T pay, your house will become a FORECLOSURE.
B.*Follow this House Hunting Worksheet to purchase a house. Make sure that you keep the "35%" amount that you figured with your PLANNING SHEET in mind. You can borrow money from your car % or savings/variable area, but NOT the other areas. Use your RESOURCES page for sites to buy a house. Some will offer you a monthly rate. Click on it, and figure out if its a 30-year fixed mortgage at 5%. If only the total amount is given, go to the bankrate loan calculator, and fill it out to find the monthly payment.(The links are on the HouseHunting sheet or at the Resources Tab on this webquest)
To reward you for reading directions, I'll give you a perk. Here it is: "Aunt Bertha died, and in her will, she left you a down payment of $20,000.00 on any house." If you read this, please put $20,000.00 in the "down payment box" of a loan calculator...or if there is none, just subtract 20,000.00 from the purchase price of any house you choose.
*Just so you know....You may feel like you get a bigger house with YOUR monthly payment than is true in the real world. This is TRUE. Usually, when buying a house, your mortgage loan includes not only the actual cost of the house, but also your HOUSE INSURANCE payments, PROPERTY TAXES, and PMI (Private Mortgage Insurance the bank takes out if you don't have at least 20% down), which usually adds hundreds of dollars onto the mortgage...so, see? There are "extras" that will be part of your monthly payment. We are just not figuring them since they can vary greatly.
*If the listed mortgage calculator gets "stuck"...as sometimes it does here....try this one:
https://www.lendingtree.com/mortgage-calculator
Also, try www.mortgagecalculator.org Just make sure its 5% interest, 30-year fixed mortgage, and that you first subtract your $20000 down payment.
***On your PPT, put a picture of your house|total cost of the house|your monthly mortgage payment|the address|description of its main features| and main utilities needed.
c.*Of course, when you buy a house, you have to furnish it. Get some review using EXCEL spreadsheets by doing this budget for "What Do You Need?" When you are finished, you will have a budget of all the things you will need to start a home.
Step 4: Choose a car/transportation that fits in your budget
4a. *Do the "Let's Buy a Ride" sheet. Use the websites at the Resources Tab. (The resources are also on the sheet) You may get a new or used car. When you have found one that fits your budget, put a picture of it on your PPT. Don't' forget to also record how much the total cost is, and how much you are paying per month over how many years. Title it with the name of the car, and include some of its outstanding features.
*When figuring your loan, you must make CHOICES about the length of the loan, and consider what you're actually paying for that "Low monthly rate". Take a look at this explanation paper, Comparing Loans.
4b. Let's talk a bit about car insurance and its vocabulary. It's illegal to drive without insurance, so you should know how to purchase it before you get a car...and learn how much it cost. Here is insurance information. Here is a page to use to explain a car accident. (Hopefully, you'll never need this, but it does show you what a "claims adjuster" looks for at a wreck.)
Step 5: Write out some bills for one month, and record it in a checkbook (Or write your first mortgage payment on a check, and save it on your PPT portfolio)
*Now that you know what your monthly bills might* be, you can write a check for your house payment. Write your check to any bank (ex. Wells Fargo Bank, First Bank) Use the Snipping Tool to put a copy of your house check payment on your PPT.
*Here is a copy of a check all ready for you to write in!
Click on the check below for directions on what to include on a check, and how to write it. (Although you usually write in Black or Blue, not red)
*If you would rather do an online free Excel check register template, click here. You can watch a demo of how to use the template at the website: http://www.vertex42.com/ExcelTemplates/excel-checkbook.html You can use a checkbook register to record all your deposits and withdrawals.
6. Step 6: Credit Card Use, Risk, and Paying back Debt
Life in Plastic is an 80's Rock song interactive about credit cards and their use...or misuse. We will do this together in class, but here is the worksheet if you need it.
Step 7: Make a monthly living budget (Bonus)
*Fill in this Excel Spreadsheet budget. Use the monthly payments you figured for your House and Car, and just list the suggested percent of income for the others. Click here for the directions for the Excel sheet. How close did you come to "Making Ends Meet"? We will import this budget onto your PPT.
Step 8: Sum up your PowerPoint presentation from the information you have gathered. Each step of this webquest should be represented in your PPT. Do a conclusion slide describing the lifestyle you are planning to have. *Don't forget to include the last slide where you list something you learned from each of the 5 "financial" related sites I asked you to visit.