This project will expose you to the requirements for living on your own. For this project you have left your house with only the clothes on your back (you cannot claim to be wearing 15 layers of clothes). You literally have nothing…no money, no car, no allowance. You will be required to research the cost of the necessities below for a period of ONE YEAR. Once you arrive at a weekly figure, you should extrapolate this amount over the course of an entire year. In addition, there are costs that are incurred periodically and these should be added into your budget under the heading “one time expenses.” For this assignment you should assume that you would receive NO financial or other forms of help from your parents, guardians, family or friends (unless you are living with ONE roommate).
Occupation:
In order to pay for the expenses you will incur during the year, you will need to look at local online classifieds and locate a job that an 18 or 19 year old with a high school education could qualify for that pays a minimum wage.
Monthly Income:
Gross and Net (GROSS is before taxes, NET is after taxes). Assume a figure of 20% in taxes. Your employer does not want to offer you full time employment to avoid giving you healthcare so assume a maximum of 39 hours per week. You cannot work twelve jobs, you are forced to only work one.
House/Apartment: Where? You must include Google Map link to location.
ONE roommate is allowed so long as you are not renting a room in someone’s house. Some apartment complexes charge first and last month rent at the start, as well as cleaning deposits. Plan on paying a $250 cleaning deposit the first month.
Transportation:
How are you getting around? You are required to include a Google Map that has location points of the following: residence, work, and stores where you will be shopping. If you take the trolley or bus you MUST include the route information. You MUST include a description of how long it takes you to get to things like work, shopping, etc. If you have a car, you must include car payment and insurance. Taking Lyft or Uber everyday (as you will see) is not economically advisable.
Utilities:
Electricity, water, natural gas (per month), garbage, include deposits if applicable. Some rental agreements include these in your rent, please indicate in your rental section where this info is listed. If not included, add $100 per month for this in your budget.
Phone/Internet/Cable:
Do not lie to me….you cannot live without a phone and internet access. At minimum, your starting plan should be $100 a month for your phone/data. If you want to add home internet, cable, etc. you must include that in your budget. You cannot share login information for streaming….AT MINIMUM you need ONE streaming service (Netflix, Hulu, etc.) You must include the streaming cost in addition to your phone plan.
Clothing:
Include a monthly expense for clothing. You should know that some jobs require you to dress to a certain standard, and in some cases you would have to purchase a uniform. Assume you had a major growth spurt and have no clothes beyond what you are currently wearing.
Medical/Dental Insurance:
YOU ARE REQUIRED to have comprehensive medical and dental insurance coverage. You should shop around the various medical insurance companies for the best rate. You will lose points off your grade if the insurance coverage you have is only for catastrophic medical coverage or if your deductible is higher than $150. No co-pays higher than $40. Do not buy any insurance with a co-insurance percentage you have to pay. You may delay the purchase of insurance for one month. You cannot simply state you have “Obamacare.”
Use this for options Covered California
Use this for calculations Covered California Calculator
Recreation:
You will need to budget for your entertainment (restaurants, socializing with friends, movies, etc.). Even if you have no friends you will still need to account for entertainment.
Savings Account:
At some point during your year you will need to open a savings account. Pick a local bank and tell me what you would need to do this and any minimum deposit you may be required to have to open the account.
Household Needs:
Dish soap, dishes, silverware, glasses, floor cleaner, paper towels, pots and pans, TV, computer, lamps, furniture, kitchen appliances, bed, etc. You must be realistic, buy what you need. Sleeping on the floor and not washing your clothes are not options.
Educational Expenses:
If you will be taking college courses you will need to list the cost of tuition, books, etc. Please indicate where you are taking the classes and what their titles are. If you travel to classes you will need to account for how you will get there, parking fees if you drive, and how the classes fit into your daily schedule. If you are taking online classes you will need to make sure you have purchased a computer and have access to wifi. You are not required to take classes, but if you don’t seek some sort of post high school education or certification you will most likely be stuck with minimum wage jobs forever.
Monthly Shopping List:
INCLUDE ALL PRICES!!! – e.g. hamburger $3.79 etc. Give the approximate weekly total and then a monthly total. You are required to purchase one gallon of low fat milk every two weeks at a cost of $3.55, one bar of Dial Soap for $1.99 per month, and 2 sugar cookies for $1.10 a piece per month. If you do not include these items your grade will be reduced by 20%. Your list must change each month in order for you to receive full credit on this portion of the project. You will need to include a food shopping list for each month of the year.
Monthly Menu:
Prepare a complete one month menu for each day’s breakfast, lunch, and dinner during the month of February. You should include an approximate cost of each meal on your menu. You cannot skip a meal, for this project you will eat a minimum of 3 meals a day and you will like it! Your food budget is a minimum of $200 per month or $160 if you work at a restaurant. If your food total falls below this your points will be deducted.
Resume/Cover Letter:
Prepare a real resume and cover letter to be submitted to an employer. Each document should be no more than one page. What work experience or personal characteristics make you the ideal candidate for the job? The cover letter introduces yourself to the employer and generally lets the employer know that you wish to have the chance to interview for the position.
House/Condo Purchase:
Someday you will want to buy your own home, you will need to research what it takes to purchase a starter home or condo in San Diego County. You will need to find a real listing of a home or condo in San Diego and then determine what sort of monthly income and down payment it would take to purchase it. Please explain the terms of your loan (15 year? 30 year? Adjustable? Fixed?)