C.A.L.M. 20 Unscheduled. Unit 5

Transcription

1 C.A.L.M. 20 Unscheduled Unit 5 Independent Living Name:

2 Unit 5 Independent Living Complete all parts of this unit on the assignment sheets provided. Assignment 1 Values and guiding principles for independent living..total /20 marks Rank /5 Grammar and Presentation /5 (2) Paragraphs /10 Assignment 2 A: Financial Management Chart /16 Opinion /4 B: Credit Scenario 1#1 /4 #2 /3 Scenario 2 # 1 /1#2 /1 #3 /2 #4 /4 C: Owning a car /5.Total /40 marks Assignment 3 Moving Out:.....Total 40 marks A. Calculation of Income. /13 B. Accommodation Grocery /4 Moving /13 C. Personal Budget /10

3 Assignment 1 Value Scale 1) Below are listed a number of values that people see as important to their lives. Rank these values from 1-30 as to their importance to you in your future, when you are living independently from your parents. a clean environment a comfortable life an exciting life an extended family a sense of accomplishment a world at peace a world of beauty a world at peace good education cultural background family security financial security freedom and independence happiness inner harmony learn about other cultures mature love learn other languages national security new experiences pleasure post secondary education power spiritual values self respect social recognition true friendship wisdom workmanship other 2) Now that you have completed the values scale write 2 paragraphs describing the key values which you feel will be your guiding principles when you are living independently from your parents. Describe how you will use these values in your day to day activities.

4 A: Personal Financial Management Assignment 2 Choosing your bank account assignment (20 marks) Choosing the right account for your money is really complicated. You will want to earn the best possible interest rate on your money everyday it is in the bank and you want to avoid as many service charges as possible. A) Visit 2 different financial institutions to find out what types of accounts and services are offered by each of them. (You may also find them on-line). Most institutions have pamphlets available that give this information or display such information on a bulletin board. You may want to make an appointment to see a bank worker, if information is not readily displayed. You may add extra pages if you need more room. Organise the information gained and place it in the chart on the next page. B) In your opinion, which account or accounts would best suit your needs at this time? Why?

5 Name of the financial institution What chequing accounts are offered? Is there a charge for cheques written on these accounts? If so, how much is the charge? Is there a monthly service fee charged on these accounts? How much is the fee? Do you receive a statement of your account and processed cheques monthly? Does the institution offer savings accounts? Name those offered and tell what % interest is paid on balances in the account. What are other services provided by the institution? Ex. Loans, mortgages, safety deposit boxes, traveller s cheques, etc Does the institution offer RRSP and or term bond investments? At what interest rate? B)

6 Assignment 2 B Credit (15 marks) Mary Smith, twenty-one and single, likes to party and spend money. She works as an accounts receivable clerk at a local department store and has been in town for a little over four months. Mary is interested in borrowing $ for a Christmas vacation in Spain and also for buying some clothes on credit. She has never borrowed money before or even charged anything. She has no established credit rating in town. Discuss credit and credit rating with your teacher. Place yourself in the shoes of a credit manager at a store. 1. What questions would you ask Mary and what type of checking would you do before you would grant her credit in buying goods at the store? 2. Would your decision differ if you worked as a loan manager at a bank, a credit union, or a small finance company? Explain.

7 Credit Sue Brown, age 23, has a problem. She has applied for credit at several department stores in town and has been turned down each time. It seems that when she was in college she was delinquent in paying back the money she borrowed on a student loan. It s not that she meant to be, but her job didn t pay much money and her parents were not able to help her out either. The lending agency which set up the loan turned the matter over to a collection agency, which, in turn, threatened to give Sue a bad credit rating. Sue only earns $ a week and is trying her best to repay it and still have enough to eat on. This is a real dilemma for her. Ken Walter wants to buy a car on credit and yet he knows that he can t really afford to. Like Sue, he doesn t earn much money at his part-time job but it seems everyone else in high school has a car and he wants one too. He feels the worst thing that can happen to him if he can t meet the payments is having his car repossessed. In the meantime, he reasons, he will have had the fun of using it. 1. What is meant by a credit rating? 2. Who has the job of rating people as good or poor credit risk? 3. What should a person do if he finds that he can t repay a loan on time? What steps should be taken? 4. What s wrong with Ken s line of thinking? List 3 good reasons why a person shouldn t buy something on credit unless he/she can afford it. A) B) C)

8 Assignment 2 C Purchasing a Car (10 marks) Research the cost of buying and owning a car (initial cost, insurance, maintenance etc ) A. List 5 questions a person should ask themselves before making the decision to own a car. Answer these questions for yourself. B. When do you think you will be in a position to own a car? Explain. 1. Question Answer B.

9 Assignment 3 Moving out Pretend you are in a position to move out on your own. You will be living with a roommate and you may split accommodation and food costs. As you work though this exercise you will make decisions which will affect the success of this move. Plan carefully and make appropriate choices such that this move will succeed. Complete each of the sections on the handout sheets provided. A. Net Income: Determine your net income by choosing anyone of the entry level jobs given and complete the following page Calculating Your Net Income. If you do not wish to use one of the positions given you may choose any entry level job from newspaper ads, or the internet. Attach a copy of the ad to the Net Income page and complete the calculation for Net Income. B. Accommodation: You are to research and find a rental accommodation. These places may be found in the rental ads in newspapers, the renters guide, or on the net. Assume you and your roommate must purchase everything needed to move into this rental. No gifts from parents, family of friends. You can split these setup costs with your roommate. Complete the handouts Grocery Shopping List and Moving in Costs. C. Person Budget: Prepare a personal balanced budget (income=expenses) based on all previous information in this Unit. Also you may wish to consult with parents and friends as they may have experience in this area. Include the following items in your budget. Annual or Yearly Expenses 1. Rental Insurance..$ Dental Costs $ Vacation. you decide 4. Christmas vacation & birthday gifts. you decide Also include a monthly savings amount which is equal to 10% of your gross income. Complete the 2 page budget document in this package.

10 Calculating Net Income In this question you will learn to calculate basic net income. Choose one job description below. All of these are entry level jobs with no experience required and few benefits provided. Fill out the income worksheet on the response page to determine net income from these jobs. This will give you a realistic income to use to plan a budget. Waiters/waitresses $9.00/hr Child care worker $12.00/hr Permanent full-time jockey $9.00/hr Full-time Prep-cook $9.00/hr Receptionist, full time, accounting firm $ per month Tree farm worker $9.00/hr Position chosen: Hourly wage is A. Estimate Gross Monthly Income: 1.Estimate daily wage: Hourly wage X 8 hrs= 2.Estimate monthly wage: Daily wage (line 1) X 21 days (average)= B. Estimate Basic Deductions 3. Income tax deduction 15% in this wage bracket (average) (0.15) of gross monthly income (line 2)= 4. Unemployment insurance 3% (0.03) of gross monthly income (line 2)= 5. Canada Pension Plan 2.7% (0.027) of gross monthly income (line 2)= 6. Total deductions (add lines 3, 4, 5)= C. Estimate Net (take home) monthly income 7.Gross monthly income(line 2) minus total deductions(line 6)=

11 Grocery Shopping List Assume the following is a shopping list of food to prepare 3 meals a day for one week. Research the price of these food items at your local grocery. Item 1 pkg spaghetti 1 can spaghetti sauce 5 kilos potatoes 1 dozen eggs 2 litres milk 1 loaf bread 250 gr butter 1 can orange juice 1 chicken 500 gr. Hamburger 1 kg apples 4 oranges 2 bananas 1 head lettuce 1 instant dinner 1 kg green beans 1 can corn 1 pkg cookies 1 pkg pudding 500 gr pork chops 1pkg sandwich meat 1 pkg cheese Extras (flour, sugar, seasonings, etc ) Total cost food for 1 wk Total cost food expense for 1 month (multiply by 4) Price

12 Moving In Costs ITEM 1 ST month rent and damage deposit Utility Charges Telephone Power Gas Cable T.V. Personal property insurance 1 st Weeks groceries Setup costs for: Other misc. costs Total moving costs Hook-up Deposits Kitchen Linen and Bedding Furniture YOUR SHARE

13 Balancing a Budget Monthly take home income Income 1. Salary 2. Other regular monthly income (tips) 3. Total monthly income Expenses 4.Insurance Car Life Property Medical 5.Annual vacation and other travel 6.Christmas expenses and gifts 7.Car maintenance 8.Household maintenance 9.Car and other licenses 10.Membership fees 11.Tuition and school supplies 12.Dental and optical 13.Taxes (if paid in an annual lump sum) 14.Clothing 15.Medication 16Other 17.Total irregular & annual expenses (add lines Monthly requirement for irregular and annual expenses (divide line 18 by 12) Monthly Amount Annual Amount