1. BELL RINGER

2. WELCOME TO THE REAL WORLD! NOVEMBER 13, 2015

3. OBJECTIVE Students will make life choices and create a budget for when they are out of college. What can you do now to help better prepare you for life during/after college? ESSENTIAL QUESTION

4. A LITTLE ABOUT THE ACTIVITY For student loan debt/payments, I took the national average for each category and used a student loan debt calculator to find the monthly payments (including interest) For salaries, I took the national average for each option and deducted approximate amounts for taxes For cars, I looked up cars that are for sale and out there TODAY. Monthly payments were estimated by the website (5 year loans). For homes, I looked up houses that are for sale and out there TODAY. Monthly payments were estimated by the website, and assumed 0% down payment and a loan of 30 years.

5. MY BUDGET November 15th Leftover from 1st$83.10 M’s Paycheck$1,490.48 J’s Paycheck$1,967.19 Tacoma$600.00 Renter’s Insurance$24.80 Fuel$100.00 GA Power$43.28 J’s CC$500.00 M’s CC$200.00 Savings$150.00 Progressive Renewal$878.00 *Verizon$189.04 Groceries$300.00 Childcare (11/20) --no care needed 11/11 --no care needed 11/23-27 $450.00 Star Card$6.92 TOTAL$3,442.04 $3,540.77$98.73 DECEMBER 1st Leftover from 1st$0.00 M’s Paycheck$1,490.00 J’s Paycheck$1,961.00 Rent$699.00 Extra rent for house$100.00 Duke Energy$200.00 Camry$600.00 Fuel$100.00 J’s CC$620.00 M’s CC$200.00 Chase$30.00 Groceries$300.00 Childcare (12/11)$500.00 TOTAL$3,349.00 $3,451.00$102.00 15th Leftover from 1st$0.00 M’s Paycheck$1,490.00 J’s Paycheck$1,961.00 Tacoma$600.00 Renter’s Insurance$24.80 Fuel$100.00 J’s CC$1,900.00 *Verizon$190.00 Groceries$300.00 Childcare (12/18) --no care needed 12/21-31 $250.00 TOTAL$3,364.80 $3,451.00$86.20

6. #ADULTING Do NOT write on the sheet with questions. DO write on the sheet with your budget. Answer each question to the best of your ability. Please take this seriously! It’s not just a game. Follow the directions and fill in your budget for your “life” IF YOU ARE GOING TO BE A DOCTOR OF ANY SORT (doctor, surgeon, OB, vet, etc.) your student loan debt will be $166000, which is $1910/month Health Insurance is also $79/month and MANDATORY by the government.

7. REAL WORLD FACTS The average student graduating from college is at least $30,000 in debt for their student loans. When buying a home, your debt-to-income ratio MUST be below 50%, meaning any debt payments you have (including your possible mortgage) has to be below 50% in order for the loan to be approved The interest on cars and houses can add THOUSANDS of dollars to your total cost if you use the full loan term.

8. YOUR CREDIT SCORE Can make a huge impact on when you buy cars/houses/etc. Essentially tells banks whether or not they should let you borrow money Ranges from about 550 to 850 Average is about 700. There are many factors to your credit score How many accounts you have opened/closed How much revolving debt you have (i.e. credit card debt) Whether you make your payments on time or not Length of credit history (how old is your oldest account) Types of credit in use (credit card, student loans, mortgage, etc.)

9. KEEPING TRACK OF YOUR MONEY It’s much easier nowadays to keep track of your money and debts because everything is online HOWEVER, you must also make sure you can afford things, especially when you have credit cards or are trying to buy something with credit. Although filing for bankruptcy is an option, it stays on your credit for 7-10 years!!!!

10. TRUTH ABOUT INTEREST

12. ANY QUESTIONS ABOUT LOANS, BUDGETING, ETC?

13. FEEL FREE TO TAKE A PICTURE OF YOUR BUDGET IF YOU WANT ON THE BACK, PLEASE WRITE… 1 THING YOU FOUND SURPRISING 1 THING YOU ALREADY KNEW 1 THING YOU LEARNED YOUR OVERALL THOUGHTS OF THIS ACTIVITY/EXPERIENCE ANY CHANGES YOU THINK NEED TO BE MADE