Managing your Personal Finances Apartment Expenses C-114 1

Do Now Review Friday’s notes and answer the following on today’s Lesson Handout: List three (3) apartment amenities Please create a list of apartment utilities Please answer: How can being organized improve your ability to track monthly apartment expenses ? 2

Do Now(continued) Please answer: How can being organized improve your ability to track monthly apartment expenses ? Name 1 way to organize this: 3

Standard 4.1 Standard 4.1 Students will be able to understand factors associated with the cost of living space choices and furnishings 4

Lesson Goals Students will be able to understand the typical expenses associated with an apartment Students will be able to complete simple tasks within Excel

Quick Review 6 You used the website to research four apartments. You chose one of them based on criteria important to you. Some of the more important criteria were location, price, layout, and amenities.

Monthly Rent Average cost of a one bedroom apartment in South Jersey $800 - $1200 7

Landlord’s Insurance Landlord carries business insurance that covers: any structural damage due to vandalism, fire and certain inclement weather personal liability for accidents occurring outside of the units. 8

Renter’s Insurance Renter should carry insurance that covers: loss of personal property due to theft, fire or other covered loss personal liability for accidents occurring within their unit 9

Personalize What does sentimental mean to you? What are some important or sentimental items you would want insured? 10

Renter’s Insurance Determine if insurance is actual cost or replacement cost current market Actual cost will be current market value (depreciated cost) original price Replacement cost is price paid when purchased a.k.a. original price (typically higher) 11

Renter’s Insurance Pricing Typical Policy provides: $30,000 Property Coverage $100,000 Personal Liability Coverage Cost is around $12 per month Might require additional insurance for certain breed of pets 12

Renter’s Insurance Tips Keep a list of possessions and their receipts to prove what was stolen or destroyed Keep a video recording of your possessions (panoramic view of each room) Keep the list of receipts and recording in a safe place outside your apartment 13

Electric Lights, appliances, TV, computer, etc Average $60 per month Air Conditioning – central or window Monthly Bill will depend on outside temperature and settings Possibly cooking, hot water, heat Monthly Bill will depend on usage and outside temperature and settings Could be very expensive 14

Gas Cooking, hot water, heat Monthly Bill will depend on usage and outside temperature and settings Could be very expensive 15

Cable Basic Cable Premium Channels HBO, Showtime, Sports Package (RedZone, Soccer) High Definition DVR Broadband Internet Router/WiFi 16

Personalize How many hours per day(average) do you watch TV? What cable channels are a necessity to you? Which ones do you want? 17

Telephone Landline Going the way of the dinosaurs Discussion Give me good reasons why you might keep your landline? 18

Cell Phone/Tablets Typically requires WiFi Hot topic: Can you live without it? How much is your monthly bill? Average monthly bill is $73 19

Excel Mini-lesson Open Microsoft Excel 20 Average Apartment Monthly Expenses Bill MonthlyAnnually Rent$900$10,800 Renter’s Insurance$12$144 Electric$60$720 Gas$40$480 Cable$125$1,500 Cell Phone$75$900 $1,212$14,544

Let’s add it up… Rent - $900 Insurance - $12 Electric - $60 Gas - $40 Cable - $125 Cell Phone - $75 21

Using the Excel spreadsheet 22

Formulas in Excel Total = sum(A1:F1) Multiply = A1*B1 Divide = A1/B1 23

Advantages of Using Excel Accurate calculations Copy and paste features Better organization of information Performs “What if Analysis” example: What will my salary have to be in order for my rent to be within the 30% rule? 24

On Your Own – Excel Activity Quick Guided Practice Calculate yearly expenses by using monthly expenses * 12. Calculate both monthly and yearly income (salary) amounts needed. Change a few expenses. What happens? 25

Exit Ticket(Part 1) Can you think of a better way of organizing your spreadsheet information? Please write and share your thoughts with a neighbor. Which one of the monthly expenses discussed today surprised you? 26

Exit Ticket List two (2) ways Microsoft Excel simplifies or allows you to keep accurate records and predict future expenses: 1._____________________________________________ 2._____________________________________________ 27