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ClassroomConnectionsDESERET NEWS
{ A P R I L 2 4 , 2 0 1 2 }
You can’t wait to be on your own and free, can you? Well, the words on your own and free don’t really go together—not when you’re paying the bills. As you will learn in this
study guide, Life is Expensive!
2 L I F E I S E X P E N S I V E !
© 2002-2006 KRP, Inc. All rights reserved.
Written by Bob Rouse, M.S.Ed.Designed by Chris CanfieldPhotography by PhotoDisc ®
Kiplinger.comInsure.com
�e National Coalition on Health Care(www.nchc.org)
(www.epi.org)
(www.III.org)
(www.usda.org)
Cars.comEconomic Policy Institute
Insurance Information Institute
US Department of Agriculture
Introduction ..............................2
Hey — Grow Up!.........................3
Let’s Go to Work ........................4
�e Family Factor ......................6
How Does Your Life Add Up?.....8
Get Up and Go.........................10
Be Sure to Insure ....................11
Built-in Costs ...........................12
Give & Take..............................13
Budget & Save.........................14
Wildcards .................................15
ou can’t wait to be free and on your own, can you? Well, the words on your own and free don’t really go together — not when you’re paying the bills. As it says throughout this study guide, Life is expensive!Make no mistake: Being an adult is cool, and you can keep dreaming about making it in the big world. Just think of this as a reality check.
To learn about life as an adult, let’s take a trip to grown-up land, where you can watch movies all night long (if you can a�ord the movie channels), eat whatever you want (depending on how many mouths you’re feeding) and travel to strange lands (like the boss’s o�ce, a mortgage company and the refrigerator repair shop). As you work through this guide, imagine that you’re 28 years old. You’ll be able to make some choices in Life, but as in the real world, some things are out of your control. �is is not a game to win or lose by making the most money. Students who learn from making realistic choices and playing by the rules will come out ahead in life, if not in this exercise. Use the worksheet in the center of this guide, but makesure you write in pencil. �ings change in Life, you know.Finally, in this exercise, you’ll use the newspaper as a toolfor information and saving money. It’s a good habit to get into for real life.
Have fun growing up — fast!
D E S E R E T N E W S 3
o, what do you want to be when you grow up? It’s a common, butimportant, question. Your choice of careers — and how hard youwork — can be the di�erence between earning $15,000 and
$15,000,000 a year. Let’s take a look at what goes into choosing a career. Abilities: Many people choose careers according to their abilities, whether
they’re creative, persuasive or good with numbers. Most abilities don’t pointto just one profession, but identifying your skills will allow you to rule out alot of occupations. (Forget about being a brain surgeon, for example, ifyou’re all thumbs.)
List two abilities — things you’re good at — that might shape your career:
___________________________________________________________
___________________________________________________________
Needs: Another part of �guring out what you want to be is knowing whatyou want — and need. If making a lot of money is your top goal — whetheryou need lots of money to raise a large family or you simply want to be rich— you might consider becoming, say, a neurologist. If whatyou want most is to make a di�erence in people’s lives,you might consider teaching.
List a top priority in your life:
____________________________________________
____________________________________________
____________________________________________
List two interests that could lead to a career:
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
Gr ades: For many careers, you need more than skill and desire; you needto be prepared. And most employers view education — and a diploma, cer-ti�cate, license or degree — as proof that you’re prepared. You might wantto heal animals, but you’ve got to go to college to be a veterinarian. And col-leges can be picky about who they let in; they o�en look to grades to helpdecide if a student has the skill and determination to do college work.
So what kind of student are you?Excellent — I make top grades, and I know how to study.Good — I make good grades through hard work or by being smart, butnot both.So-so — I’m passing, but I have to work hard at it — or — I’m not workingnearly hard enough.Poor — I’m not passing all my classes — or — I probably will drop out ofhigh school.
Sometimes wants, needs and abilities can come together and lead a per-son to a dream job. Let’s see — I love clothes, I have a knack for drawing andstyle and I make pretty good grades. I’m going to be a fashion designer!
Other people have to make compromises. OK, I’m good at �guring outhow things work and I’d like to be a mechanical engineer, but my gradesaren’t good enough to get into college. I’ll be a mechanic instead!
Turn the page to pick a career for Life.
Wants: What job will make you want to get out of bed every morning and go to work? (“Nothing” is not a choice here.) You might be skilled at a job that pays a high salary, but if it doesn’t interest you, you’ll be unhappy. Find work that will keep you interested. And while some people can cash in on a hobby (a rock collector who becomes a geologist, for example), others can’t.
Grab a paper and pen and jot down these three headings:
Age 18 Age 25 Age 30
Under each, make a list of the five top interests and expectations you’ll have as you reach each age. In a small group, discuss the changes you see coming in the years ahead — and the wants and needs you expect to have as you move into new phases of your life.
4 L I F E I S E X P E N S I V E !
2
1602,2$ revird suB691,1$reihsaC
Electrician helper $3,300Farm worker Fast food cookForkli� operatorHighway maintenance worker
rotinaJ Maid
PainterSalesperson (retail)Security guardTaxi driverWaiter/waitress
No diploma
Bank tellerfehC
Child care workerConstruction worker (general)Data entry keyer
TME rethgiferiF
Mail carrierMilitary (noncommissioned o�cer)
ledoMProfessional athlete
yraterceS regniS
tnega levarTVeterinarian assistant
High School diploma
eople have always asked youwhat you’re going to bewhen you grow up. And now
you can tell them! Listed below are dozens of career
choices, grouped by the schoolingrequired for each. While you mightchange jobs — and even careers —several times in real life, you need tostick with one career for this exercise.
Life is full of choices, but yourcareer options depend on school per-formance. You’ve probably heard ofhigh school dropouts who became richand famous, but you’re not one ofthem — not in this Life, anyway.Check your response on Page 3.
If you said you’re an “excellent”student, you can choose from any joblisted here.
If you said “good,” you can pickfrom any job except for those in the #4boxes.
If you said “so-so,” you can pickfrom jobs in the #1 and #2 boxes only.
If you said you’re a “poor” student,your choices are limited to jobs in the#1 box.
Warning: Your �rst instinct might beto choose a high-paying career just forthe money — but wait. People who do
that in real life o�en �nd themselveswell paid, but unsatis�ed. Likewise,students who pick a top-salary jobhoping to “win” this simulation mighthave full bank accounts, but they’llcome up empty on learning.
For the best learning experience,be honest with yourself. Pick a careerwith work that matches your abilities— one you think you’d really enjoy.Don’t select librarian if you’re not bigon reading. And don’t be a dentist ifyou can’t stand working in, uh, moistplaces.
Another thing: The listed salariesare national averages of monthlyearnings. You might know of peoplemaking more or less in these jobs, butwe’re using average salaries.
�e same is true for educationrequirements. �ere are paralegals(listed here as a two-year collegerequirement) with bachelor’s degrees— and those with no degrees at all.�e requirements below are guide-lines; some are �rm (doctors, forexample), while others are more �exi-ble.
Place a check beside the career ofyour choice.
$1,405$1,521$2,558$2,933$2,042$1,787$3,110$1,691$2,235$2,643$1,698
$2,065$2,743$2,083$2,079$2,243$3,180$3,480$4,078$3,315$3,035$2,553$2,767$2,504$2,541$2,275
Finding a good job and excelling in a career you enjoy is key to having the life you want. To begin getting an idea of the types of jobs available in di�erent career fields, check out the employment section of the Deseret News website at www.classifieds.deseretnews.com/jobs/listings. �en follow up by visiting a few of the websites listed with the jobs.
For example, at Mountain America’s website www.macu.com/home/aboutus/careers/, you can learn about the company and check on the current job openings. Click on the job titles that look interesting to review the requirements for the job.
Discuss with your class group some of the jobs that appeal to you and why.
5 D E S E R E T N E W S
4
5 :EVISNEPXE SI EFIL
4
33
2Auto mechanic Cosmetologist Electrician Floral design Hairstylist Heavy truck driver Machinist Medical assistant Plumber
redleW
Vocational degree
Accountant Architect ClergyComputer programmer Computer engineer Fine artist Flight attendant Graphic designer Insurance agent Landscape architect Marketing manager Meteorologist News reporter Occupational therapist Park naturalist Physician assistant Public relations specialist Sales representative Social worker
Writer
Bachelor’s degree
Guidance counselor Elementary teacher Engineer (civil) Engineer (electrical) Librarian Secondary teacher Pharmacist Physical therapist Psychologist Speech pathologist
Master’s degree
College professor Dentist Lawyer Optometrist Veterinarian
Professional degree
General practitioner Specialist Pediatrician Psychiatrist
Medical degree
2Dental hygienist O�ce manager Paralegal Real estate agent Registered nurse
Associate degree
$3,118$2,443$3,571$2,126$2,256$3,271$3,082$2,480$3,355$2,861
$4,433$4,336$4,370$5,078$4,755$4,380$9,551$6,241$6,880$5,734
$5,133$3,258$3,899$3,092$5,700
$4,637$11,782$8,500$8,881$7,509
$14,523$18,297$10,202$16,049
$5,619$6,369$3,393$6,224$7,027$3,954$4,642$3,960$3,720$3,538$9,169$7,519$3,561$4,236$4,018$7,479$3,790$4,694$3,907$4,750
6 L I F E I S E X P E N S I V E !
EREHEMAN S’REPAPSWEN RUOYEVISNEPXE SI EFIL :6
Will you — gulp! — marry me?One of Life’s big choices is whether to
get married — and when. At 28,you’re past the age when halfof the population has mar-ried (for the �rst time). It’sOK to wait, though. It’sup to you:
Yes, I’m married.I’m still single.
Spouse’s incomeIf you’re married, let’s
�nd a job for your spouse.Actually, we’ll just �nd an incomeby using a totally random formula. Usethe following steps to determine your spouse’ssalary; you’ll decide later whether he or she works— and gets paid.
1. Write your monthly salary (�om pages 4 and 5) here ___________________
2. Multiply it by the number that matches theday of the week you were born on (If you
don’t know, go to www.mathisfun.com/games/ days of week.)
Sunday..............................................1.0Monday ..........................................0.8
Tuesday ..................................0.9Wednesday ........................1.6
�ursday.........................1.2Friday............................1.1Saturday.......................0.4
3. Wr ite spouse’s salaryher e:____________________
Her e, kiddie kiddieAnother big decision in Life is whether
to have children. A baby is a tiny addition witha huge impact. Kids can be very rewarding, butthey cost time and money. Ready to have a family?
Yes, I’m ready to be a parent.No, I’m not ready.
If you said yes, you’ll need to determine howmany kids you have. Warning: Sometimes thingsgo as planned, but only sometimes.
Write your full name
____________________________________________
If your �rst name has an odd number of letters,you have one child.
If your �rst name has an even number of let-ters, you have two children.
If your �rst name has three letters and beginswith a vowel, you have thr ee children.
If your �rst name has 10 or more letters, youhave no children — even though you wanted tostart a family. Life is unfair.
How many childr en do you have? ___________
Stay-at-home mom or dadIf you’re married with children, you’ll have to
decide whether one of you will stay home withthe kids or you’ll both work. Of course, anothersalary will help pay for things you need, but somecouples decide to give up the second salary. Sowhat’ll it be? Will your spouse stay at home withthe kids? (By the way, you’re working either way.)
My spouse will stay home.My spouse will work.
The money tr eeWith a family, you face higher
expenses. Costs vary from family tofamily, but in this Life, you’ll use thefollowing �gures for one month:Child care
(only if your spouse works)1 child = $400 2 or 3 children = $700
Your child car e cost per month: __________
D E S E R E T N E W S 7
7 :EVISNEPXE SI EFILEREHEMAN S’REPAPSWEN RUOY
Ren t or ow nWhen you rent, you make monthly payments tothe owner. To buy, you usually borrow money(a mortgage) to pay for the house, then makemonthly payments to the lender. �e question ofwhether to rent or own involves several factors:
Ow n er sh ip: You might pay more per month,but the house is yours — all yours.
Tax es: Most homeowners can lower theirincome tax bill by making mortgage payments.(We won’t get that complicated in Life.)
Dow n paym en t: It’s not included in Life, buthomebuyers o�en pay a big chunk of moneyjust to get a loan.
Loan r ates: Lenders charge a fee, called inter-est, to lend you money. When interest rates arelow, monthly mortgage payments are alsolower.
FoodSingle male = $219Single female = $185Couple = $444Couple + one child = $531 Couple + two children = $644Couple + three children = $730
Your food cost per m on th :____________
ClothesFor careers in box #1 and #2 —
$50 per adult; $40 per childFor careers in box #3 and #4 —
$150 per adult; $60 per child
Your cloth in g cost per m on th : ___________(adults + children)
Let’s go h om e Married or single, parent or childless, you’ll
need a place of your own as an adult. And onceyou know about your income and family size, youcan make choices about what type of place to callhome. Listed below are the monthly costs of rentor mortgage.
Note: You can get a place with more roomthan you need, say, a three-bedroom house evenif you’re single. But if you’ve got one or two kids,you must have at least two bedrooms.
Note No. 2: Several housing possibilities aren’tlisted here because of issues not covered in Life.
RentOne-bedroom apartment — $680Two-bedroom apartment — $820OwnTwo-bedroom house — $1,141�ree-bedroom house — $1,338Four-bedroom house — $1,431Huge, deluxe house — $1,833
Your h ousin g cost per m on th : _________
Mountain America’s mortgage calculators at www.macu.com/home/personal/onlineservices/financialtools/calculators/mortgage/ can help you calculate monthly payments for di�erent loan amounts, payment periods and interest rates.
In small groups go to the site and calculate a monthly mortgage payment on a $200,000 home to compare how much the di�erences are for the life of these loans:
3.75% interest rate for 30 years, and 20 years5.75% interest rate for 30 years, and 20 years.
A good credit score is an important factor when it comes to obtaining a home loan at the best interest rate. When it comes to a home purchase, a high score can save you tens of thousands of dollars over the life of a mortgage.
8 L I F E I S E X P E N S I V E !
8: LIFE IS EXPENSIVE YOUR NEWSPAPER’S NAME HERE
Child care cost (Page 6): __________
Food cost (Page 7): __________
Clothing cost (Page 7): __________
Housing cost (Page 7): __________
Public transportation: $78
Or
Car payment (Page 10): __________
Spouse’s car payment (Page 10): __________
Monthly gas cost (Page 10): $90 or $150
Auto insurance cost (Page 11): $130 or 262
Health insurance cost (Page 11): $100
Additional health-related
expenses (Page 11): $65
The cost of smoking (Page 11): $150
Home insurance cost (Page 11): __________
TV programming costs (Page 12): $0, $30 or $99
Utilities cost (Page 12): __________
Telephone cost (Page 12): __________
Tax payments (Page 12): __________
Contribution to charities (Page 13): __________
Set-aside for vacation (Page 13): __________
Dining-out cost (Page 13): __________
Savings (Page 14): __________
Student loan payment (Page 14): __________
Wildcard total from
Page 15 (include + or -): __________
List your monthly
salary (from pages 4 and 5)* : __________
Write spouse’s salary here,
if he/she works (Page 6): __________
Total income: ______________
* If you selected “physician” as a career, there’s
something you need to know: At 28, you’re not
finished with your education yet — you’re still an
intern. Use $1,825 as your monthly salary.**Also go back to Page 6 and recalculate your
spouse’s salary. Don’t worry, though; you’ll be
earning the big bucks in a couple of years.
**Don’t panic, doctor. If you chose “physician”
as a career, you’re still getting your education and
do not have to pay back student loans — yet!
Total expenses: ______________________
9 D E S E R E T N E W S
8: LIFE IS EXPENSIVE YOUR NEWSPAPER’S NAME HERE
Child care cost (Page 6): __________
Food cost (Page 7): __________
Clothing cost (Page 7): __________
Housing cost (Page 7): __________
Public transportation: $78
Or
Car payment (Page 10): __________
Spouse’s car payment (Page 10): __________
Monthly gas cost (Page 10): $90 or $150
Auto insurance cost (Page 11): $130 or 262
Health insurance cost (Page 11): $100
Additional health-related
expenses (Page 11): $65
The cost of smoking (Page 11): $150
Home insurance cost (Page 11): __________
TV programming costs (Page 12): $0, $30 or $99
Utilities cost (Page 12): __________
Telephone cost (Page 12): __________
Tax payments (Page 12): __________
Contribution to charities (Page 13): __________
Set-aside for vacation (Page 13): __________
Dining-out cost (Page 13): __________
Savings (Page 14): __________
Student loan payment (Page 14): __________
Wildcard total from
Page 15 (include + or -): __________
List your monthly
salary (from pages 4 and 5)* : __________
Write spouse’s salary here,
if he/she works (Page 6): __________
Total income: ______________
* If you selected “physician” as a career, there’s
something you need to know: At 28, you’re not
finished with your education yet — you’re still an
intern. Use $1,825 as your monthly salary.**Also go back to Page 6 and recalculate your
spouse’s salary. Don’t worry, though; you’ll be
earning the big bucks in a couple of years.
**Don’t panic, doctor. If you chose “physician”
as a career, you’re still getting your education and
do not have to pay back student loans — yet!
YOUR NEWSPAPER’S NAME HERE LIFE IS EXPENSIVE: 9
• So, how are you doing, moneywise? Are you in the black(with a positive number)? Or in the red (with a negativenumber)?
• Are you pleased with your financial situation as a 28-year-old?
• Are your finances here a result of chance or choices?
• How much did your grades affect the out-come? How much will grades and edu-cation affect your real-life outcome?
• What can you do in real life to avoidfinancial problems encountered in thisexercise?
If you feel that post-high-school training will be a part of your life
plan, think about how you will pay for it. Earning good grades now really can pay off in the future by helping you qualify for scholarships. Working for a company that has a tuition assis-tance program is another way to help finance your education.
In classroom groups, go to the U.S. Government website at www.federalstudentaid.ed.gov/ for information on grants, student loans and scholarships. Mountain America also offers student loans for those who may not qualify for a federal student loan or for those who plan to attend a trade or specialty school or take certification courses—just visit www.macu.com/home/personal/studentaccounts/studentloans/ for information on student loan programs.
10 L I F E I S E X P E N S I V E !
Your monthly car payment:
Does your spouse need a car?If so, enter your second car’s monthly payment
Your monthly gas cost:
ou’ve got a home. You’ve got a job. Now you’ve got to get from home to work and back again — every day. You also need
transportation to everywhere else: grocery, mall, movies, parties — you get the idea. You’ve got two choices: own your own vehicle or use public transportation (bus, subway, etc.). You can save a lot of money by taking the bus or train — but only if it’s a realistic choice for you.
I’m buying some wheelsNo car for me, I’m using publictransportation: $78
Don’t forget the fuel Gas prices are another transportation expense. Prices change, and some people drive more than others, but let’s say you’ll spend $90 a month for gas. If your spouse has a car, you two will ride together some of the time, so budget $60 for the second vehicle.
Let’s go cruising Chances are, you’ll want wheels of your own. Life o�ers several choices of cars, trucks, SUVs and minivans in two categories, new and used. Listed costs are monthly loan payments based on a �ve-year loan. Maybe in real life, you’ll pay cash or lease a vehicle, but not in this exercise.
Honda Accord $407Ford F-150 truck $852Toyota Camry $396Chevy Cruz $350Ford Explorer $664Dodge Caravan $444Dodge Ram truck $538Jeep Grand Cherokee $562Ford Fusion $359GMC Yukon $670Lexus GS350 $1,092
’02 Honda Accord $117’08 Volkswagen Jetta $251’01 Mitsubishi Eclipse $89’03 Chevy S-10 truck $142’10 Chevy Corvette convertible $988’07 Toyota 4Runner $340’06 Ford Explorer $224’04 Ford F-150 4x4 truck $154’07 Toyota Camry $214’03 Lexus ES300 $211
New vehicles Used vehicles
New vehicles are already relatively pricey, with the average cost at $30,748, according to USA Today. Add a loan on top of the sticker price, and new cars can be even more expensive.
Using the calculator on Mountain America’s website, www.macu.com/auto, determine how much you’d save each month if you got a five-year loan for $30,748 at 2.74% versus one at 6.52%. How much does that add up to over the life of the loan?
11 D E S E R E T N E W S
Accidents happen If you have a wreck, auto insurance can cover the cost of �xing your car and the medical expenses of the people in your car—plus the other person’s car and people, which can total thousands of dollars. �e cost of insurance depends on how much the policy covers, the type of vehicle you drive and where you live. If you have a wreck or get a tra�c ticket, your insurance rates usually go up. For this exercise, let’s go with the national average: $130. �at’s $130 per month—per vehicle. If youdon’t own a car, you don’t need this insurance. Ifyour spouse owns a car, that’s another $130.
Your monthly auto insurance cost: _________
To your health! Staying healthy can be cheap: eat right, exercise and don’t smoke. But if you do get sick—or injured—health care can be very expensive. Health insurance can help even out those costs, and many employers pay for at least some of their employees’ insurance.Let’s say you’ve got health insurance through work and you pay for part of it along with other health expenses.• Your monthly health insurance cost: $100• Additional health-related expenses, monthly: $65• Do you smoke? It’ll cost you: Add $150 per month for cigarettes
Your monthly health insurance cost: _________
Fire and earthquakes and thieves—oh, my! You’ll need to insure your home and your stuff (if you buy a house) or just your stuff (if you rent) against damage or theft. Here’s how much you’ll need to spend each month for insurance:Own: $40Rent: $14
Your monthly home insurance cost: _________
eople buy insurance to protect themselves in case of an accident, theft or illness. Insurance doesn’t prevent these and other misfortunes from happening, but it does pay most of
the cost when they do occur. For this protection, you pay the insurance company a set amount each month.
To drive, not only do you need a license, you also need insurance on the car. �at can be expensive, especially for teens. Compare the following examples for teens with a 2002 Toyota Corolla, a clean driving record, comprehensive and collision coverage and a $500 deductible.
16-year-old male $1487/yr., with no discount16-year-old male $1203.50/yr., with good student discount
16-year-old female $1130.50/yr., with no discount16-year-old female $914/yr., with good student discount
�ese examples are best-case scenarios. As a class, discuss what other factors could a�ect the insurance premium. For more helpful information, check out the Rocky Mountain Insurance Information Association at www.rmiia.org.
12 L I F E I S E X P E N S I V E !
EREHEMAN S’REPAPSWEN RUOYEVISNEPXE SI EFIL :21
Hook up for TV
Most Americanhouseholds have atleast one television.How you get yourTV programmingdepends on whereyou live and what youwant, and choicesinclude cable, satellitedish and built-in anten-na. How many channels you choose for Lifeis up to you.
• Very basic cable (local channels only): $30/month
• Deluxe package (loads of pay channels and movies): $99/month
• Antenna (counting on good reception): $0/month
Your monthly TV programming cost:______
Utility costs: They’r e electr ifying! Turn o� that light! Close the re�igerator! Don’t waste so much water!
All this time, you thoughtyour parents were bugging youabout saving energy and waterbecause they’re picky. Hey,they’re just trying to save money!Now that you’re paying the electrici-ty, gas, and water bills, see why:
One-bedroom apartment − $100Two-bedroom apartment − $120Two-bedroom house − $150�ree-bedroom house − $180Four-bedroom house − $240Huge, deluxe house − $270
Your monthly utilities cost : ______________
Hang up!Will somebody please
get that phone … bill?Oh, yeah, you will!Telephone expensesdi�er widely, depend-ing on location andcellular plans. When�guring your costs,you might think you
can save money by getting acell phone for you but not your spouse.
Obviously, you haven’t been married. If you get a cell, so does your spouse.
Home telephone: $35Cellular phone: $60Spouse’s cell phone: $40
Your monthly telephone cost: ____________
Time for taxesPeople hate to pay taxes, but taxes pay for
roads, police and �re protection, and thousands ofprograms that bene�t citizens. It doesn’t matter.
People still hate to pay taxes.You’re about to pay taxes, too. �e fol-
lowing table is not the real tax table, andit ignores hundreds of details that addor subtract from a real-life tax bill. Butit’ll give you a good idea of the bite that
taxes take out of your monthly income.Write your monthly income: ______________Multiply the �rst $800 by 0.10 to get 10%: _______Multiply the amount over $800, up to $2,500, by 0.15 to get 15%: ______________Multiply the amount over $2,500 by 0.25 to get 25%: ______________Total monthly tax payments: ____________
Example: If you’re a meteorologist and earn$7,519 a month, here’s what your tax paymentwould be:
Multiply the �rst $800 times 10%: $80Multiply the amount over $800, but not over$2,500, times 15%: $255Multiply the amount over $2,500 times 25%: $1,254Total monthly tax payments: $1,589
Cut out the ads you see in the newspaper or online for cell phone
products and services that you like. Take a look at the cost of buying the phone and monthly costs for the service plans. Be sure you check out all the options for text messaging and also how o�en you can upgrade as new models hit the market. And don’t forget to include the cost of the Internet services you’ll need. In your classroom, compare the models, options and service costs of the phone you like best with those others have selected. See who comes up with the best deal for the most popular options.
13 D E S E R E T N E W S
31 :EVISNEPXE SI EFILEREHEMAN S’REPAPSWEN RUOY
Wher e’s the love?When charities come knocking on your door
(as well as call you on the phone, send you let-ters, and greet you as you enter the grocery store),how will you respond when they ask for dona-tions? Can you say no to the American CancerSociety, the YMCA, your college, and the kiddown the street?
Most Americans donate to charities, and theannual amount varies from pocket change to$3.3 billion (from Microso� CEO BillGates). �e average family gives about 2percent of its income to charities.Calculate 2 percent of your monthlyearnings:
Your income _____ + spouse’sincome _____ = total _______ x 0.02 = _______
Now, you decide if you willgive that amount, more, or less.
Your monthly contr ibution tochar ities: ________
See the wor ldYou deserve a vacation this year — if
you can a�ord it, that is. Choose from one ofthe following vacation packages and then set asidemoney each month to pay for it. �e prices includetravel and food:
One week at Disney World ................$1,980One week in San Francisco (or another faraway city) .....................$1,320One week in Europe.............................$3,480One week in Hawaii .............................$2,8804-day Caribbean cruise.........................$1,6202-week Mediterranean cruise..............$9,000
One week at the beach (driving) .........$960One week at a state park (driving) ......$720One-week camping (driving)................$240One week at your in-laws’ house ........$60Your monthly set-aside for vacation(divide the above amount by 12): ___________
Out to lunchIf you want to eat out — and who doesn’t —
it’ll cost you. Use this chart to get your family’scost of eating out, then decide how many timesyou’ll eat out each month.
Fast food
Monthly totalNumber of visits per month to a fast foodrestaurant ______ x cost ______ = ______
Number of visits per month to a nicer restaurant _______ x cost ________
= ________Total dining-out cost for the month: ________
Single $5 $15
You and spouse(or date) $10 $30
Married +one child $13 $35
Married +two children $16 $40
Nicerrestaurant
Suppose you decide to take the Hawaii vacation listed above. How will you pay for it?
Option 1: Save until you have enough money to go. If you save $75/month, how long will it take to reach your goal?
Option 2: Use a credit card and make the trip now. If your credit card’s interest rate is 9.99% and you only make the minimum payment of $58, how long will it take to pay o� the balance? How much extra in interest will you have paid? For help, use the calculator at www.federalreserve.gov/creditcardcalculator.
Weighing the advantages and disadvantages, which approach do you think is best?
14 L I F E I S E X P E N S I V E !
EREHEMAN S’REPAPSWEN RUOYEVISNEPXE SI EFIL :41
o matter what you earn, you cantake steps toward �nancial secu-rity by creating and sticking to a
budget and a savings plan. Budgeting is making choices that match
your spending goals with your income. �ecenter spread of Life guides you through theprocess for this exercise.
In real life, your �rst step to making a budgetwill be to track all your expenses—every dollaryou spend. When you keep a record of yourspending, you might be shocked to �nd out howmuch you spend on things such as movies andcheese pu�s.
Saving is holding on to some of your money soyou can use it in the future. Many people set asidemoney in an account that grows tax-free until it’swithdrawn years later. Company-sponsored plansare called 401(k) plans. You can also start anIndividual Retirement Account on your own.
How much will you save? �e more you setaside—and the sooner you start doing it—themore you’ll have to enjoy when you retire.
Your monthly savings: ______________
One mor e thing to budget
Your monthly student loan payment:
______________
College was great, wasn’t it? Well, you’re still paying for it. Not everyone borrows money to pay for higher education, but let’s say you did. Check on pages 4 and 5 to remind yourself how much schooling you needed for your career. �e table below shows typical monthly payments for student loans:
Vocational school: . . . . . . . . . . . . $54Associate degree: . . . . . . . . . . . . . .$60Bachelor’s degree: . . . . . . . . . . . . . $184Master’s degree: . . . . . . . . . . . . . . .$220College professor: . . . . . . . . . . . . .$280Professional degree(except college professor): . . . . . $530Physician: . . . . . . . . . . . . . . . . . . . .$840
Budgeting. �e basics are easy, but the execution may be a challenge. Living within your means (and avoiding credit card debt) is the bedrock of long-term financial success.
Mountain America o�ers no-cost online educational modules to help people develop their money management skills. To access information on budgeting (and many other topics), go to http://balancetrack.org/moneymanagement/index.html, and select Chapter 4 — Building a Budget. Filling out the Budget Worksheet will give you an overview of your income versus expenses.
Are you living within your means?
15 D E S E R E T N E W S
ow that you’ve established your monthlyincome and expenses, see what can hap-pen when unexpected expenses (orincome) come your way — Life’s wild-
cards. Several possible events are numbered andlisted below, and three will happen to you. Hey,that’s Life.
You’ll need two dice for this part. Let the num-ber you roll with the �rst die be the �rst of twodigits; the second roll yields your second digit.Using dice, the lowest possible number is 11, andthe highest is 66. Write the monetary r esults ofyour thr ee wildcar d r olls in the blanks below.
11 - Teenagers break out your windshield (only ifyou have a car. Roll again if you use publictransportation). Rather than risk your insur-ance premiums going up, you pay $250 toreplace it.
12 - �e toilet won’t �ush. You pay $82 for a visitfrom the plumber. If you rent, pay nothing.
13 - Find a lost dog and collect the reward. Youget $20.
14 - You’ve got a cold. Insurance covers most ofyour visit to the doctor’s o�ce. You pay $1 0.
15 - If you have kids, one has a broken arm. Evenwith insurance, medical care and time o�work add up. You pay $75. No kids, no pay.
16 - You can’t wait to see the new Hollywoodblockbuster movie. For two tickets and pop-corn, you pay $1 9.
21 - You overpaid last year’s taxes — who knew?You get $1 1 2 .
22 - Happy birthday to your nephew. For a pre-sent, you pay $1 7.
23 - Not the TV! You need a new one and canmake monthly payments. You pay $38.
24 - A smoker’s coughturns into bronchitis.You pay $25 formedical care. Nosmoke, no pay.
25 - Clean out the attic and clean up at a yardsale. You get $1 78 .
26 - You’re caught speeding. You pay $82.
31 - As Employee of the Month, you get $50.
32 - Pitch in for a Boss’s Day gi�. You pay $5.
33 - Time for an oil change. You pay $24 if youdrive. Double if your spouse has a car, too.
34 - Your friends won’t let you miss a concert.You pay $45 .
35 - You need a new camera for your vacation.You pay $1 35.
36 - You get a puppy from the pound. You pay$80 for shots and a license.
41 - You’ve earned a promotion at work! You get5 per cent of your salary added to yourincome.
42 - Who can say no to Girl Scout cookies? Notyou. You pay $9.
43 - Your vacation photo wins a contest. You get $50 .
44 - A cousin dies and you’re in her will. You get$200 a month from a trust fund.
45 - You run over a neighbor’s newly planted tree.You pay $85 to replace it.
46 - You need new shoes to be in a wedding. Youpay $65 .
51 - Your kid needs money for a �eld trip.You pay $4 . No kids, no pay.
52 - It’s your 10-year class reunion. You pay $50
53 - It’s a home run — through your win-dow. You pay $35 , but only if youown your home.
54 - Someone lost a �ve-dollar bill, and you found it. You get $5.
55 - You talked too much on the phone thismonth. You pay $22 .
56 - Your child stars in a local TV commercial.You get $1 00 . No kids, no money.
61 - Your kid lost his coat. You pay $45 for a new one. No kids, no pay.
62 - You win a karaoke contest at the fair. You get $25 .
63 - You broke o� a doorknob at home. You pay $30 .
64 - �e power company overcharged its cus-tomers. You get $6 as a rebate.
65 - A storm brings a tree limb crashing into yourgutter. You pay $110 if you own your home.
66 - You need a new computer. You pay $40a month.
First wildcar d: _______ (include + or -)
Second wildcar d: _______ (include + or -)
Thir d wildcar d: _______ (include + or -)
Wildcar d total: _______ (include + or -)
Go to Page 8 to total up your Life !
800-748-4302 www.macu.com
Thanks
Mountain America has continually been a champion of Newspapers in Education and demonstrated an unwavering commitment to teaching Utah’s youth the importance of Financial Literacy. Each year Mountain America reaches thousands of students, helping them learn the basics of budgeting, saving, spending, wise use of credit and protecting their identity. This financial education is aimed at helping them get on track financially, become motivated to take action and live a balanced life.
Federally Insured by NCUA. Loans subject to credit approval. Membership required based on eligibility.
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Mountain America Credit Union has 71 branches in five states and offers a variety of financial products and services for consumers and businesses. With roots dating back to the 1930s, Mountain America Credit Union is a tradition for many members. Today the credit union serves more than 373,000 members and has over $3 billion in assets. Mountain America Credit Union has been honored five times as one of “Utah’s Best Companies to Work For” by Utah Business magazine. Visit macu.com for more information.
