Reality CheckHow much do you need to make

to support your standard of living?

Today we are going to see how much your future lifestyle will cost. We are going to use a program called Reality Check to determine how much we need to live on our own.

• Today, we are going to see how much it costs to live on your own and to pay for bills such as rent, utilities, transportation, and other things.

• Then, we are going to figure out how much you will need to make to cover your expenses. We will look at potential careers that may help you to afford your lifestyle choices.

Did you know…… • The weekly expenses for most people average $531.

• If you earn minimum wage, the cost of housing will use up 80% of your total earnings.

Quiz for the day…..• How much do you think it would cost if you broke your arm

without insurance?

• Believe it or not, it could cost around $10,000.

Housing Options

• A big part of being an adult is providing your own housing.

What are some expenses to think about when you are looking at housing?

Amount of Space

• The number of bedrooms and bathrooms in an apartment have a direct effect on the cost of rent.

• Will you live alone or have a roommate?

• It is up to you to decide how much space you need.

Utilities• Once you get a place to live you'll need to get the utilities

turned on.

• What are some utilities?• Electricity• Phone (home and cell)• Heating/Cooling• Cable• Internet• Water

Food• Another part of being an adult is buying your own food.

• Will you…..?• Eat at home/pack lunch• Eat at home and go out to eat occasionally• Dine out

Which of these options costs the least?

• How much money you will spend each month?

Transportation

• As an adult, you provide your own transportation--and pay for it.

• What are costs associated with transportation?

Clothing

• Everybody needs clothes, and some occupations require a nice wardrobe.

• How much money you will spend each month?

Healthcare• Another part of being an adult is paying for your own

healthcare. • Sometimes health insurance is offered through your employer.• If not, then you can buy health insurance or pay for doctor and

dentist visits “Out of Pocket”

Entertainment• Having a good time doesn't have to cost a lot of money, but

many activities do.

• What types of things do you like to do for fun?

• How much money you will spend each month?

• What are some low cost ways to have fun?

Personal Care

• Looking good costs money too.

• Here are some examples of personal care expenses:• Haircut• Makeup• Gym membership• Cologne

How much money you will spend each month?

Miscellaneous• You will need to budget for miscellaneous items

• What are some examples of miscellaneous items?• Pets• Household goods• Travel• Gadgets• Gardening equipment and plants• Home theatre• Swimming pool

Student Loans• Few students can afford to pay for college without some form

of education financing.

• Two thirds of 4-year undergraduate students graduate with some debt.

• There are many different types of loans and repayment terms.

• As an example, the interest rate for the Federal Stafford Loan is 6.8%

Savings

• It is easy to spend all the money you earn, but it is also wise to set some aside for later.

• Paying yourself means you save some of your money each month.

• How much did you want to save?

Complete your online Reality Check

• Open browser and log into www.californiarealitycheck.com• Click on Reality Check• Select “Palm Springs” (We are using this town because the

cost of living is similar to what it is here.)• Write down cost of each of your selections on your Lifestyle

preference worksheet.