MAJOR EXPENDITURES: TRANSPORTATION AND FOOD Personal Finance Mrs. Bullock

TRANSPORTATION What are transportation options in your community? Public Transportation 1% Other 4.9% Fuel 5.3% Vehicle Purchase 5.4%

© Take Charge Today – April 2014– Major Expenditures – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Public Transportation _____________ May not be convenient or require more travel time Availability depends on the location Does not require extra cost of ownership expenses Typically cost effective Examples include: taxi, subway, bus, etc.

© Take Charge Today – April 2014– Major Expenditures – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Purchasing an Automobile _______________ New and used vehicles Convenient hours ________________ Typically pre- owned vehicles

© Take Charge Today – April 2014– Major Expenditures – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Do Your Research! __________ working with sales personnel ____________ your needs and wants Identify the right type of vehicle for you and desired _____________ _____________ expected costs You are responsible for yourself! Advance research will _______________________ your satisfaction with the purchase!

© Take Charge Today – April 2014– Major Expenditures – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 What are typical automobile ownership expenses? Automobile ________________ (if credit is used) ______________ Maintenance and ________________ License and ________________ (yearly fee) _______________ _______________ (in some locations) Before purchasing a vehicle, be sure you can afford the _______________ cost of ownership The ____________ of most vehicles depreciates (lowers) over time One of the _____________ costs of ownership Make sure you don’t ________ more than you own if credit is used The Statement of Financial Position should record the market value of the vehicle ____________________ Depreciation

© Take Charge Today – April 2014– Major Expenditures – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Marina’s Out-of-Pocket Expenses 5-Year Average Out-of-Pocket (15,000 miles driven per year) Fuel$9,852 Insurance$3,915 State fees (licensing)$1,932 Maintenance$1,945 Repairs$1,758 5 Year Total$19,402 Monthly Amount$ Monthly Payment Purchase Price$21,548 Down Payment$2, Interest Rate2.84% Monthly Payment$ Total Paid (down payment + loan) $22, Marina’s monthly loan is $347.09, but on average, the car will cost her, $ per month to own! Marina purchased a 2013 Honda Accord Source: bankrate.comSource: kbb.com

© Take Charge Today – April 2014– Major Expenditures – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Using Credit _____________ will determine if a loan will be granted and the terms Automobile Dealerships Depository Institutions Loan rates vary significantly between lenders. Shop around ______________ negotiating.

© Take Charge Today – April 2014– Major Expenditures – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Down Payment Amount required (if any) ______________ If selling a current vehicle, research the vehicles worth __________________ of talking to others If you trade-in your vehicle, negotiate the trade-in value __________________ from the price of your new vehicle

© Take Charge Today – April 2014– Major Expenditures – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Leasing You pay a specified amount of money (usually monthly) for a ___________________ ________________ Once lease expires, vehicle ______________ to the lease grantor Read the contract closely – look for ____________ ________________ Leasing – _________________ a product while the ownership remains with the lease grantor

FOOD Which do you prefer, preparing food at home or eating out? Why? 7.7% home cooking 5.3% eating out

© Take Charge Today – April 2014– Major Expenditures – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G1 Summary Housing, transportation, and food Over ______ of spending ________________ if renting or owning a home is best for you Housing Consider the ________ cost of owning a vehicle Transportation Eat well-balanced meals high in nutrition that fit into your ______________ ______________ Food