Independent Living Skills Kathy Hatch EDUC 668 April 2014

Introduction “I can’t wait to leave home and be on my own!” Most teenagers are eager to experience the freedom of living on their own. Few teenagers have any idea of the costs and responsibilities of such a move. This lesson provides a “reality check” for students as they examine the costs of moving, setting up, and maintaining a household. Independent living is more than finding somewhere to live-it's how can you afford to do it without breaking the bank?

Goals The student will increase his/her awareness of the costs and responsibilities of living independently. The student will work in teams to set up a budget for maintaining a household that includes rent, utilities, and living expenses.

Framing and Assessing Lesson Participation points for Completed budget worksheets In class quiz Extra credit available if they complete a visit of a bank or potential housing complex

Starting Point What does the future looks like after high school? Discuss what it means to live independently Think of your bedroom at home and fill out the worksheet to estimate the cost of furnishings. Divide students into teams of two or three people. The students in these teams are now “roommates.”  Each team will select a room to furnish and determine the cost of furnishings.  We'll put them all together so you can see the cost of moving out on your own.  As a team put together a budget to live on.

Finding your own place Terms you should know ■ Tenant – one who pays money to live in a building (renter) ■ Landlord – the owner of a property or building ■ Lease – a rental agreement between a tenant and a landlord ■ Term – the length of time of the lease ■ Rent – money paid to the landlord by the tenant ■ Premises – the grounds and apartment building ■ Default – to fail to fulfill an agreement ■ Negligent conduct – an act of carelessness What a lease looks like and what it usually contains: ■ Length of lease ■ Amount of rent per month ■ Date rent must be paid ■ Names of tenant and landlord ■ Address where rent is to be sent

Building Your Budget What's my income? Fixed Expenses Variable Expenses Put it all together-am I spending more than I'm making? Things to consider:  Where do health insurance and income taxes come in?  Do I need a roommate?

Budget Worksheet Reminders Divide Your Expenses: Determine the cost for each category and record the prices in your budget. Basic rule of thumb: Rent: 30% of net pay Utilities: 10% of net pay Car Insurance: 5% of net pay Cell Phone: 5% of net pay Occasional Spending: 10% of net pay Savings: 10% of net pay Food: 15% of net pay Car Loan: 10% of net pay Entertainment: 5% of net pay

Reflection Putting all the pieces together Compare your expenses to your monthly income. Have you spent everything you’ve earned? Do you have money left over for savings?  Are savings a fixed or flexible expense?  What expenses could you lower to increase your savings?  Where does medical insurance and income taxes come in to the picture? Given your income and personal lifestyle preferences, how long can you stay within budget?

Present Product Room furnishing worksheets Budget worksheet Unit Quiz Optional forms for bank account information or housing visit