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Welcome to the FAMS Personal Budget WebQuest!This WebQuest is adapted from one Adapted by FAMS -- Questions or Comments, please contact tsnee@franklinlakes.k12.nj.us.
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OBJECTIVE |
The objective of this WebQuest is for you to set up a budget that would allow you to live the type of life you would like. This will include finding a house, finding a car, developing a budget, and finding a career that would match your income needs. This WebQuest does involve doing some calculations, but it's main purpose is to allow you to have fun dreaming of the future while realizing what these dreams may cost and the the cost of daily life. During this WebQuest you will need to complete the worksheet that goes with this webquest. After finding a house and a car, your teacher will give you a budget worksheet to complete. Throughout the project you will also be faced with real life scenarios that you must resolve which may require changes to your budget, because a basic rule of personal finance is to not spend more money than you earn.
TASKS |
During the first phase of the project you will be required to set up a monthly budget. You will be required to write your budget on a provided worksheet, and get your information off the internet, noting the sites that you used. The first step will be for you to find out what type of careers will provide you with the necessary income, and how much education and experience is needed for these careers. The maximum annual income for use in this project is $70,720. The preparing of the budget will include finding
a house, finding
a car, and setting
up a budget.
After completing the preliminary budget, you will electronically submit your typewritten budget to Mr. Snee on or before May 13th. At this point Mr. Snee will review the project, looking for calculation errors and commenting on how realistic the budget is.
To complete the first phase of the project, you will need to make revisions to your original budget, explaining your reasons for doing so.
The second phase of the project will include how you modify your budget and cash flow so that you can react to a variety of life situations that will occur. Again you can not spend money that you don't earn which means that there will need to be "sacrifices" made along the way.
If you need additional resources to complete the project, links are provided below. Also, you may e-mail Mr. Snee with questions or comments.
Each part of the project is detailed below.
This is the first step of your WebQuest. Now it's time to find a career. Using this link to the U.S. Government's Occupational Outlook Handbook, find a career that you are interested in and is within the maximum annual income guidelines listed above. Include the amount of education needed for your career.
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FINDING A HOUSE |
This is the second step of your WebQuest. Almost everyone has an idea of where they would like to live, and what type of house they would like to own. It's your job to use the links below to find your dream house. After you do so, make sure to note where the house is located, and what the selling price is. Also make sure to note the URL that you used and include a picture and description of your home. Your home must be a single family house that has at least three bedrooms and one bathroom and have a sale price of at least $170,000. The home must be located in Bergen County, NJ and condominiums and townhomes CAN NOT be used for this project. Please describe the 5 reasons for selecting your home and be as specific as possible.
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FINDING A CAR |
Most people also have ideas on what type of car they would like to own. Use the links below to find your dream car. Make sure to note the price of the car. Also make sure to note the URL that you used and include a picture and description of your car. Your car must have a sale price of at least $15,000 and can be either a used or new. Please describe the 5 reasons for selecting your car and be as specific as possible.
SETTING UP YOUR BUDGET
The next step is to calculate the monthly payments for your dream house and your dream car:
1. Before completing this process, there are some terms you must understand. On your own paper, review the following definitions.
- mortgage - A loan secured by the collateral of some specified real estate property that obliges the borrower to make a predetermined series of payments.
- interest - The price paid for borrowing money. It is expressed as a percentage rate over a period of time.
- terms - The period of time during which a contract is in force.
- down payment - amount of money you put down on an item before making a loan.
2. You will be using the websites listed below to calculate your monthly house and car payments.
- Your monthly mortgage payment using the Yahoo! Real-estate Loan Payment Calculator
- Your monthly car payment using the Yahoo! Car Loan Payment Calculator. However, before going to either site, complete the steps here:
- Calculate a down payment - you will only have a 9% down payment for both the house and the car.
- For the mortgage payment (home) you will need to use a current interest rate from an existing bank or loan company. The terms (how long you are financing the loan for) of the home mortgage must be between 15 and 30 years. Remember you will subtract the down payment from the original amount in order to calculate your actual loan amount.
- For the car payment you will need to use a sales tax of 6%; a current interest rate from an existing bank or loan company; a 36 month term, a 48 month term, or a 60 month term; and your 9% down payment.
Remember that you are calculating the monthly and annual payments for all loans. Record this information so that you can figure how much money you need to make to make these dreams a reality.
3. Some budget experts recommend that a house payment should be no more than 28% of your gross monthly income, and that a car payment should be no more than 12% of your gross monthly income. Figure out what income you would need for the house you would like to buy, and also the car you would like to own.
