Managing your Personal Finances Apartment Expenses C-114 1

Do Now Review Friday’s notes: Please create a list of apartment amenities. Please create a list of apartment utilities. Please answer: Is there an easier way to keep track and calculate monthly apartment expenses? 2

Standards 4.1 Students will be able to understand factors associated with the cost of living space choices and furnishings. 3

Goals of the day: Students will be able to understand the typical expenses associated with an apartment. Students will be able to complete simple tasks within Excel.

Yesterday… 5 You used the website to research four apartments. You chose one of them based on criteria important to you. Some of the more important criteria were probably location, price, layout, and amenities.

Monthly rent… Average cost of a one bedroom apartment in South Jersey $800 - $1200 6

Landlord’s Insurance Landlord carries business insurance that covers: any structural damage due to vandalism, fire and certain inclement weather personal liability for accidents occurring outside of the units. 7

Renter’s Insurance Renter should carry insurance that covers: loss of personal property due to theft, fire or other covered loss personal liability for accidents occurring within their unit 8

Renter’s Insurance Determine if insurance is actual cost or replacement cost Actual cost will be current market value (depreciated cost) Replacement cost is price paid when purchased (typically higher) 9

Renter’s Insurance Typical Policy provides $30,000 property coverage $100,000 personal liability coverage for about $12 per month Might require additional insurance for certain breed of pets 10

Renter’s Insurance Tips… Keep a list of possessions and their receipts to prove what was stolen or destroyed Videotape your possessions Keep list, receipts and videotape in a safe place outside your apartment 11

Electric Lights, appliances, TV, computer, etc Average $60 per month Air Conditioning – central or window Bill will depend on outside temperature and settings Possibly cooking, hot water, heat Bill will depend on usage and outside temperature and settings Could be very expensive 12

Gas Cooking, hot water, heat Bill will depend on usage and outside temperature and settings Could be very expensive 13

Cable Basic Cable Premium Channels HBO, Showtime, Sports Package (RedZone, Soccer) High Definition DVR Broadband Internet Router/WiFi 14

Telephone Landline Going the way of the dinosaurs 15

Cell Phone/Tablets Can’t live without them Might need WiFi 16

Excel Mini-lesson Open Excel 17 Average Apartment Monthly Expenses Bill MonthlyAnnually Rent$900$10,800 Insurance$12$144 Electric$60$720 Gas$40$480 Cable$125$1,500 Cell Phone$75$900 $1,212$14,544

Let’s add it up… Rent - $900 Insurance - $12 Electric - $60 Gas - $40 Cable - $125 Cell Phone - $75 18

Using the Excel spreadsheet 19

Formulas in Excel Total =sum(A1:F1) Multiply = A1*B1 Divide = A1/B1 20

Advantages of Using Excel Accurate calculations Copy and paste features Better organization of information Performs “What if Analysis” example: What will my salary have to be in order for my rent to be within the 30% rule? 21

Please complete Excel activity You will be guided through using formulas in Excel. Calculate yearly expenses by using monthly expenses * 12. Calculate both monthly and yearly income(salary) amounts needed. 22

Exit Ticket Please provide 3 ways that Excel either simplifies or allows you to more accurately record and predict future apartment expenses…. How might someone who is usually disorganized with their bills benefit from using an Excel spreadsheet? 23