Welcome to Life

The Real vs. the Fantasy: Learn how to budget with what you

are given

Assignment

You will be creating a PowerPoint presentation this week based off of research you complete for your future life: the REAL and the FANTASY. • Real means your PowerPoint exemplifies all

things realistically possible. A realistic job, a realistic spouse (not someone famous who makes millions of $$).

• Fantasy means you can have whatever you’d like.EACH SLIDE (#1-7) must be split in HALF and have REAL on the left, and FANTASY on the right.

EXAMPLE

REAL VERSION OF YOUR LIFE

FANTASY VERSION OF YOUR LIFE

Slide #1

• Your first and last name• Your profession• Your monthly income

– go to collegeincolorado.org click “Career Planning” at the top click “Explore Careers” in the search box type your career to find your income. You can figure out the rest from there.

– IF you cannot find your income here, you may search elsewhere

• A creative paragraph about where you work and how long you have worked there

• Include a picture

Slide #2

You just got married! • Tell me what your spouse does• Tell me their monthly income

– Find their income the same way you found yours…through collegeincolorado.org

• Write a paragraph describing where they work and how long they have worked there.

• Include a picture of your ‘spouse’

If you choose NOT to get married, write on this slide a sentence why.

Slide #3

Housing• Find a house at zillow.com that you can afford. Include

your monthly payment (rent or mortgage). Must include interest over 30 years (you have a 30 year loan). See next slide for math help.

• Include a picture of the house/apartment• Include the number of bedrooms, bathrooms, and

square footage.• Include an address and a picture of the place.• Tell me three reasons why you picked this rental.

Owning vs. Renting• When you find a

location that offers you the ability to rent, you’ll be able to see right there how much your monthly bill would be.

• If you are interested in owning your own home…there’s some math to figure out, including adding in interest rate.

Buying a house…the MATHTotal cost to purchase houseX 0.05 (this is interest)Your interest paymentX 30 years$$ you pay in interest over the 30 years+ original cost of houseTotal cost over 30 years

Total cost over 30 years/360 = total monthly cost

EXAMPLE:$350,000 the cost to buy my fantasy houseX 0.05$17,500 total interest I’ll pay each yearX 30$525,000 total interest I’ll pay over 30 years+350,000$875,000 total cost over 30 years of my house

$875,000/360 = $2,450 monthly payment

Slide #4

Vehicle• Find a vehicle you would like to purchase

through cars.com (or another similar site). What is the price? Divide it by the number of months you want to pay it off in. (No more than 60 months.)

• Include $150 for insurance and gas per month.• Include a picture and description of you car.

Slide #5

CHILDREN• If you have decided to have children, list them

here. Please only select to have between 0 and 3 children.

• Show pictures, ages, and brief descriptions of each child.

• If you select 0 – explain why you’d prefer to not have children.

Slide #6

Food• List your five favorite foods. • Do research on how much each food costs to make.

• Tell me how many times a month you plan on eating out.

• List the average cost of eating out for your family per night based on your top two locations. Be sure to include a 20% tip.

• Include two pictures of your food or restaurant.

Slide #7

FOOD COSTS MONEY• Based on the next slide, calculate your

MONTHLY payment for food (pay extra attention to the header). Make sure to include children if you have children.

• Include the monthly breakdown on this slide.– Monthly breakdown should include the cost of

food from the chart + your eating out expenses from slide #6.

Slide #8

UH OOOOOOOOOOOOH• Something bad has happened to you. Please

see Mrs. Meredith for your disaster. • You are not allowed to complete this slide

until all previous slides are checked by Mrs. Meredith.

Slide #9

Final Monthly Financial Report• Insert a graph that looks like this.

Earned Spent

My income 4,000 Rent 4000

Spouse’s income 2,500 Food 900

Car 800

Insurance and Gas 150

Bad thing 600

TOTAL 7,000 TOTAL 6,750

Slide #10

END RESULT• How much money did you end up with in

BOTH scenarios (real vs. fantasy)?• How are you going to spend the remaining

money?• How are you going to earn money if you spent

more than you make?

Slide #11

REFLECTION• How did this assignment help you to

understand the financial responsibilities of life?

• Write a reflection as to how you can make sure your life turns out a little more predictable/manageable than it did in this activity.