INTRODUCTION-"REAL WORLD PROJECT"
Financial matters are a major concern in many households. During The Real World
Project you will hopefully begin to understand and appreciate some of those
concerns. As you progress through this project try to understand the relationship
between marriage and financial responsibilities. Be mindful of the financial, physical,
emotional and social consequences of teenage pregnancy. When beginning a job, no
matter what your position or profession, seldom do you start out on the top of the
salary scale. It often takes years to maximize your income. One must also realize the
relationship between education and employment opportunities. For the purpose of
this project your income will be limited to $45,000 for single incomes, and $80,000
for married couples. Think about the reality of getting a job now-HOW MUCH
COULD YOU REALLY EARN? Also think about you future-How much will it cost
to live in the REAL WORLD!!!
SECTION A-EMPLOYMENT
Directions:
Think about what line of work you would like to do as an adult. Once you know what you and
your spouse/roommate will do for a living-come see me for approval. Try to realistic in
matching your academic achievement, motivation and personality to a job/career.
Husband's-job
Educational Requirements
H.S. , college
Wife's -job
Educational Requirements
OR
advance degree(s)
Roommate One's Job
Educational Requirements
Roommate Two's Job
Educational Requirements
OR
Single-Your Job
Educational Requirements
2. Your yearly income will be based on your education and luck. You will roll the dice and
match the number from the dice with the number listed below.
Dice
1
2
3
4
5
6
MASTERS DEGREE
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000
COLLEGE
$32,000
$36,000
$40,000
$44,000
$48,000
$52,000
HIGH SCHOOL
$26,000
$28,000
$30,000
$32,000
$34,000
$36,000
REMEMBER THAT MARRIED COUPLES CANNOT EXCEED $80,000
AND INDIVIDUAL CANNOT EXCEED $45,000
Enter Your Yearly Salary
$
+$
Wife
(Roommate 1)
=$
Husband
(Roommate 2)
Yearly Income
3. Next, you will calculate your net salary by subtracting 30% from your gross salary-this will
cover income tax, social security, state tax, general taxes through purchase and insurance. By
subtracting 30% of your total income this will give you the actual dollar amount you will have
to work with for the project.
YEARLY SALARY $
X
=
.25
Line A
Now you are going to subtract Line A from your Yearly Salary.
YEARLY SALARY $
-
Line A
=
Line B
Next, take Line B and put it on the yearly net line. Line B is the actual dollar figure you
will be bringing home per year after taxes.
divided by 12 =
Yearly Net
Monthly Net
SECTION B-WILL YOU RENT AN APARTMENT OR BUY A HOUSE?
1. The next task is to look for a place to live in the Chicago land area. You must decide, based
on your finances, if you will buy or rent an apartment. You will only need to fill out one or the
other, and not both. Each family must have a home with at least two bedrooms. The home or
apartment needs to be near where your job is – meaning your travel time cannot exceed 1 hour.
Home
Home Buying Sites
realtor.com
Cost of Home $
homestore.com
Town
newhomeweb.com
Square Footage
Monthly Mortgage $
+400.00=
2. Go to Mortgage Calculator
A. Enter the cost of your home.
B. Do not change the interest rate and the term of loan.
C. Add $400.00 to the cost of your principal and interest. This is for the taxes on your home.
Apartment
Monthly Rent $
Apartment Sites
homestore
apartment.com
Town
forrent.com
Name of Complex
Square Footage
Deposit $
Major Utilities Included: such as water, heat
ect..
SECTION C-AUTOMOTIVE FINANCING
1. Will you be purchasing a new or used car(s)?
2. For new car listings, go to Cars Direct. Select your car and then go to the next step, and
then see terms and customize your payments.
3. For used car listings, go Car Max. Select your car and then go to the payment estimator
for your monthly payments.
4. Your monthly insurance rate for each car. $80.00
Car Number One
New or Used
Car Number Two
New or Used
Make of car (Ford)
Make of car (Ford)
Model of car (Explorer)
Model of car (Explorer)
Year of Car
Year of Car
Monthly Loan Payment $
Monthly Loan Payment $
Monthly Insurance Payment $
divide by 12
Monthly Insurance Payment $
divide by 12
Monthly Upkeep-Gas, Oil Changes $ 250.00 Monthly Upkeep-Gas, Oil Changes $ 250.00
Total Monthly Car Payment $
Total Monthly Car Payment $
SECTION D-MONTHLY UTILITIES
This is an estimation of the cost of utilities in your home. Cable is not required,
and if you do not want it, then cross it out and deduct the cost from the total
monthly utilities. You may also be renting an apartment which includes some of
these utilities. If that is the case, indicate that by crossing that utility out and
deducting the cost from the total monthly utilities.
Northern Illinois Gas
$100.00
Commonwealth Edison
$75.00
Garbage
$40.00
Water
$45.00
Illinois Bell
$75.00
Basic Cable
$60.00
Cell phone (per phone)
$100.00 or ($200.00)
Adjusted Utility Total
$
SECTION E-BASIC LIVING EXPENSES
In this section you are estimating the costs for your family. Remember, this is for the
entire month!
Groceries ($50.00 per person-per week)
$
Recreation (Optional-your decision)
$
going out to
dinner/movie/activities
Life Insurance (Mandatory if you have
children)
For coverage select $100,000
For term length select annually renewable
$ 100 per month
Apartment Insurance (Optional)
Get Renters insurance
$ 30 per month ($360 per year)
House Insurance (Required)
Get Homeowners Insurance
$ 100 per month ($1200 per year)
Savings (Optional)
$
Clothes (Optional)
$
Birthdays/Holidays/Gifts (Optional)
$
Total Monthly Living Expenses
$
Credit Cards (You will only use these if you
$
can not
meet your monthly expenses) Monthly deficit $
month's
multiplied by 9.9%
deficit mult. by 9.9%
Add to next
payments
SECTION F-MONTHLY CHILD CARE COSTS
Single parent – paying child support x .20%
$
of monthly income
Formula
$125.00
Powder/ointments
$ 25.00
Diapers (about .25 each/10 per day)
$
Clothing
$
Toys/Developmental Items
$
Total Child Care Costs
$
SECTION G-ONE TIME EXPENSES FOR THE BABY
Do not panic on this section!!! These are one time baby expenses and will not be
deducted from your monthly expenses. I just want to make sure you are aware
of the costs of these items.
Car Seat
$
High Chair
$
Crib
$
Dresser
$
Breast Pump (if you choose to breast feed)
$
Stroller
$
Baby Monitor
$
Bottles
$
Swing
$
Ear Thermometer
$
Miscellaneous
$
Total one time expenses for a baby
***Please answer the following questions.
$
***
Toys R Us.com
1. Would you need to charge these items? Why or why not?
2. Could you afford to pay for these baby items? Explain.
CAN YOU BUDGET YOUR MONEY?
MONTHLY OUTPUT-HOW MUCH DID YOU SPEND?
The next step is adding up the totals under sections B, C, D, E, and F then
subract the total of all your bills from your monthly net.
Section B-Apartment or House Costs
Section C-Automotive Financing
Car Number 1
$
$
Car Number 2
$
Section D-Monthly Utilities
$
Section E-Basic Living Expenses
$
Section F-Child Care
$
Grand Total-Monthly Expenses
$
Now subtract your grand total from your monthly net to find out how much cash
you have left at the end of each month.
Section A-Monthly Net
Single Parents will receive:
$300.00 a month for child support for
one child.
$
$400.00 a month for two children.
Add this into your Monthly Net
$
Grand Total-Monthly Expenses
$
Cash Flow
=$
Are you positive or negative? If you are positive-Great! If you are negative, you
will need to add the following:
1-500 negative add $50.00 under credit cards and readjust.
501-1001 negative add $75.00 under cards and readjust.
1002 and higher add $100.00 under credit cards and readjust.
Answer both of these questions regardless of your final cash flow.
If you were negative, what would change in the next month to balance your budget?
If you were positive, what will you do with your additional cash?
Reflection Questions
What must be turned in at the completion of the project are pages 1-12 with all the
information(this can be done together) and each person must submit their own reflection
questions.
You will need to type out each question and then type your answer in complete
sentences. Make sure if are ‘married” person that each of you type-up your own
reflection and turn in with the above information.
Finances
1. What would happen at the end of the month if you did not have enough money
to pay your bills?
2. If you became a teen parent, where would your financial support come
from? Do you feel you really could support that child at this point in your
life? Explain.
Parenting
3. Explain two ways your lifestyle would change if you had a child right now?
What instructions would you give your own children regarding sex? At what age
would you give these instructions?
4.
5. What are two responsibilities of parenting?
6. What are two values would you like to develop in your children?
7. What are three possible problems of raising a child alone?
8. What skills do you think are needed to be a successful parent?
9. Based on your experiences completing this project, do you believe couples
planning to have children should be required to pass a parenting class?
Future Expectations
10. What are your goals in life? Are you taking the right steps to help you reach
that goal?
11. What skills will you need to be a successful partner in life?
12. Do you think you are under too much pressure to succeed? Where is that
pressure coming from?
13. What do you think makes a person successful in life? Is it directly related to
money?
14. Do you think you would be better off (less stress) if people did not have high
expectations of you? Is that a good thing?
15. Write (at least) three sentences reflecting on this project and/or your feelings
about you future and how you are being prepared for it.
What must be turned in at the completion of the project are pages 1-12 with all the
information(this can be done together) and each person must submit their own reflection
questions.