Getting AroundGetting Around

TransportTransport

You need to decide how you are You need to decide how you are going to travel to and from work and going to travel to and from work and out and about.out and about.

Your choices are:Your choices are:1.1. Public TransportPublic Transport2.2. Running a CarRunning a Car3.3. Self propelled (bike or walk)Self propelled (bike or walk)

Which?Which?

Discuss the advantages and Discuss the advantages and disadvantages of each:disadvantages of each:

Buying a CarBuying a CarYou are going to investigate the cost of running a You are going to investigate the cost of running a

carcarYou will need to considerYou will need to consider(a)(a) Car loanCar loan(b)(b) Car taxCar tax(c)(c) InsuranceInsurance(d)(d) Running costsRunning costs

Use the car sales board to find a car you like and Use the car sales board to find a car you like and complete the car loans and alternative transport complete the car loans and alternative transport pages of the booklet to find out if you can afford pages of the booklet to find out if you can afford it.it.

Car Loans

Car loans are typically offered with repayment schemes of between 2 to 5 years. Calculated at 5.6% per year To find the total monthly repayment amount for the loan use the table below and

find out if you can afford the cost of a car. Price of car (a) Total amount of repayments. Multiply (a) by 1.056

(b)

Loan period in months (number of years multiplied by 12)

Monthly repayments (b) divided by (c)

Notice that the actual amount the car is costing you goes up if you take a longer loan period. Petrol The amount petrol costs you, depends on the price set by the petrol companies and the government tax upon that (combining to make the price you pay at he pumps) and length of the journey travelled in the car. The cost also depends on the size and efficiency of the engine in the car. Currently petrol prices are approximately 99p per litre (but it is rising and very changeable). As a guide we have provided approximate weekly costs for petrol dependant on the type of car. Complete this table to work out the monthly cost of motoring; Monthly Cost Car Loan Petrol Insurance Tax Parking Total Now you can fill in the transport section of your personal budget.

Make a Decision!Make a Decision!

1. Decide if you wish to travel by car, bike 1. Decide if you wish to travel by car, bike or public transport and complete your or public transport and complete your transport section of your personal transport section of your personal budget.budget.

Personal Budget

Name: Occupation: Location: Gross Salary:

Payslips, Tax and National Insurance

Property

Transport

Spending the Rest Calculate your remaining funds for a month = [Monthly Salary (net)] – [Total Property Cost + Total Cost of Transport] = This is your budget for food, clothes and having fun ect. Fill in this table, deciding how much you are going to spend in each category For food you will need a budget of at least £15 per week Food Clothes Sports Clubs Going out with friends Cinema Savings (for holidays ect.)

Monthly Salary (gross)

Monthly National Insurance

Monthly Tax Monthly Salary (net)

Mortgage Potential

Rent or Buy Monthly Cost of Mortgage or Rent

Household Bills

Total Monthly Property Cost

Money Left

Mode of Transport

Cost of Ticket (Monthly)

Cost of Loan (Monthly)

Additional Costs; Fuel, Car-Tax etc…

Total Monthly Cost of Transport

Spending it allSpending it all

Now you have paid for your accommodation Now you have paid for your accommodation and sorted out your transport the rest of and sorted out your transport the rest of the money is yours to spend as you wish.the money is yours to spend as you wish.

Don’t forget:Don’t forget:(a)(a) Food (minimum £15 a week but you will Food (minimum £15 a week but you will

be hungry)be hungry)(b)(b) ClothingClothing(c)(c) Savings (for emergencies or holidays)Savings (for emergencies or holidays)(d)(d) PensionsPensions

ReviewReview

How do you feel about your budget?How do you feel about your budget?

Has it changed what you want to do?Has it changed what you want to do?

How can you make things easier for yourself?How can you make things easier for yourself?

Fill in the “what would I do differently” sheet.Fill in the “what would I do differently” sheet.

Did we miss anything out?Did we miss anything out?