1. Unit 7: Personal Financial Literacy
The basics

2. Budgeting
On your L 107 page… -create a pie chart for your expenses -create a pie chart for how you think you might need to budget your expenses in the future

3. Why budget? (L107) What’s the purpose?
How do you make it relevant and incorporate the practice into your own life?

4. Budgeting apps
Mint
You Need a Budget
Every Dollar

5. Housing
Rent an apartment/house, buy a house, share a house with roommates, live at home
Where do you look for a place to live?
Cost of furnishing the house: usually about 15% of housing cost
Your total monthly payment should be about 25-30% of take home pay (disposable income)

6. Shelter Estimate basic expenses(monthly and annual):
Insurance (rental or homeowners): this covers theft, flooding, and other things that might happen.
Electricity and Gas: this is cost for cooling and heating your home.
Water/garbage: Sometimes included in rent payment, but not always. (Sometimes paid to the city)
Phone: Decide whether you will have a land line, or cell phone or both.
Cable/Internet: Include basic cable and any extended service that you might have. Does it include Internet connection?

8. 10 Things to Remember when Renting an Apartment
If it sounds too goo to be true, it is!
Look at your exact unit…not a model.
Read the contract!
Take pictures of the unit when you move in and again when you move out.
Give list of damages and conditions to the landlord upon move in. Keep a copy for yourself.
Request response to #5 in writing and keep a copy.
Pay rent on time but absolutely no later than 10 days late…and PAY the late fee.
You must pay rent until a magistrate or judge says otherwise.
Use student legal services at your university or call Legal Aid if you need legal advice.
Your security deposit must be returned within 30 days or or you must be informed why it is not being returned. If this notice does not happen by 30 days, you may sue in small claims court.

9. Transportation
Car (own or lease, new or used), carpool, bus system, subway
Where do you find these?
Monthly and annual budget for
Gas
Regular maintenance
Assume $30-50/month
Ask students if they have ever considered buying a car or if they currently own a car. Have them identify potential costs they may have when owning a car.

10. Car Buying Terms
Lease- long-term rental where the dealer allows a lessee to use the vehicle for a specific period of time or agreed mileage while making monthly payments
Lease payment = sum of rent charge and depreciation charge plus applicable taxes
At the end of the period, the lessee can buy the car or return it to the dealer
APR- Annual Percentage Rate
Finance rate, interest rate on a loan
Down Payment- cash paid up-front by a borrower to reduce the amount financed in a lease/loan
Extended Warranty- “service contract” to cover certain specific service and repairs beyond the life of the factory warranty (not suggested)
Default- failure to make payments or abide by the terms of the financing contract
Car-Buying Terms Glossary, May 2015,