money coach program 2017-2018 student workbook...money coach program 2017-2018 student workbook...
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Money Coach Program 2017-2018
Student Workbook
Program Manager: Stephaine Crosley
414-273-8101
www.securefutures.org
1
Money Coach Program
2017-2018
Student Name: _________________________________
My One-on-One Coach
Name: ________________________________________
Email: ________________________________________
Cell Phone: ____________________________________
2017-2018 Money Coach Calendar
Session 1 Session 2 Session 3
Session 4
Progress Reports
Session 5 Session 6
Session 7 Session 8
Progress Reports
End of Program Celebration
2
Money Coach:
Session Structure Overview
Money Coach is an eight session program completed over a four month period with high school juniors and seniors.
Each session will include a lesson facilitated by a coach in either a small group or large group format. The session
formats are discussed below.
Small Group Sessions (Session 1, 3, 5, 7)
Money Coach students will be divided between all coaches equally with each coach having up to four students. Each
coach will serve as the facilitator of the small group activity. Small group sessions are designed to provide an
environment where a deep discussion about the lesson topic will occur. The small size will help ensure all students are
engaged and understand the core topics. Coaches will have a lesson plan to follow that focuses on asking students
questions to drive engagement and interest, and/or having students complete an activity and provide feedback
regarding what they learned and what they need more coaching on.
Large Group Sessions (Session 2, 4, 6, 8)
The designated group coach will facilitate the large group lessons. These lessons focus on specific financial topics and
are full of activities and discussion.
One - on - One Sessions
One - on - one coaches will be assigned up to six students. Coaches and students will meet individually for 10-15
minutes during the large group sessions. Key areas of focus are to:
○ Re ie ea h stude t’s progress usi g the Student Financial Goal Checklist.
○ Listen, guide and coach students.
○ Assist students in setting a savings plan.
○ Mo itor the stude ts’ progress a d help the to address o sta les a d istakes.
Session Index
1. SG: Financial Goal Checklist and Banking
2. LG: Expense Tracking and Budget Exercise
3. SG: Financial Vision Board and Budgeting & Saving
4. LG: Money Path
5. SG: Independent Living
6. LG: To Your Credit
7. SG: Preparing Your First Post High School Budget and Vehicle Acquisition
8. LG: Program Wrap Up
3
Money Coach Student Profile
Money Coach Program
SecureFutures’ cutti g-edge Money Coach program is a hands-on financial coaching program delivered to high
school students by volunteer coaches. The Money Coach program provides a deeper understanding of financial
concepts and hands-on goal-setting through a lesson plan that focuses on direct volunteer-to-student
interaction.
Money Coach volunteers engage and encourage participants in small groups and one-on-one as they develop
action plans to achieve financial needs and goals. Money Coach is a one-of-a-kind approach and has proven to
be a valuable addition to high school programming. Money Coach also provides the opportunity for students to
earn a scholarship as they meet program benchmarks.
Student Responsibilities
● Attend every session. If you will not be on time, communicate with the Site Partner.
● Attend all events; most importantly, the End-of-Program Celebration.
● Communicate all absences with Site Partner and One-on-One Coach before the missed session. Students
will be allowed only 2 absences.
○ If a student is absent for a session, they must contact their One-on-One Coach before the next
session to discuss their goals, report their progress and complete missed assignments.
○ Students with more than 2 absences or who have not checked in with their coach after an
absence will be penalized and may lose their place in the program.
● Actively participate in all sessions and activities.
● Successfully complete the Student Financial Goal Checklist.
● Track your expenses for the entirety of the 4 month program.
● Open a bank account within one month of starting the program.
● Communicate with your One-on-One Coach a minimum of once outside of the in-person sessions .
Communication can be via text, email, phone call, or Facebook.
● Work toward building a meaningful mentoring relationship with your One-on-One Coach.
● Conduct yourself in a professional and appropriate manner at all times.
● Interact positively with your fellow money coach teammates.
Expected Commitment
The Money Coach program follows a 4 month schedule. Sessions are held twice a month, for a total of 8
sessions. Each session lasts 90 minutes, for a total of 3 hours per month. Sessions are held either during the
school day or after school hours, depe di g o the site’s prefere ce. The total stude t co it e t is hours over 4 months.
Eligibility Requirements
● Junior or Senior in high school
● Must be in good standing academically.
● Interest in learning more about personal finance, money management, and saving strategies.
● Willingness to complete assignments and communicate with coaches outside of the school day.
● Commitment to developing and achieving a savings goal related to a college or career plan.
● Ability to catch up on classwork that may be missed due to the Money Coach sessions, if the sessions
take place during the school day.
● Interest in building a mentor/mentee relationship with the volunteers in the program.
4
Money Coach Scholarship Program
Student Agreement
This is an agreement between ____________________________________ and the Money Coach Scholarship Program
at SecureFutures. The purpose of this document is to clarify the expectations for participation in the Money Coach
Program, where students will:
● become better prepared to manage their finances independently after high school graduation,
● build a mentor/mentoree relationship with a volunteer Coach,
● have an opportunity to earn college or career scholarship money, and
● build self-confidence and life skills.
Money Coach participants specifically agree to the following program requirements and will hold themselves
accountable for each requirement in order to be awarded all or part of the scholarship award:
● Successfully complete the Student Financial Goal Checklist.
○ Create a savings goal and savings plan to accumulate funds to cover a purchase or expense related to a
college or career plan.
○ Work with a coach to discuss an important issue/goal related to a college or career plan and develop a
personal plan to achieve it.
○ Track expenses, and create and follow a monthly budget.
○ Open and manage a savings and/or checking account.
● Actively participate in group financial education lessons about budgeting, saving, credit, taxes, etc.
● Work toward building a meaningful mentoring relationship with the One-on-One Coach.
The Money Coach Scholarship money is awarded based on the following criteria:
● Attendance: Students will be paid $25 per session that they attend (maximum of $200). Students will work to
maintain perfect attendance, will be on-time and stay for the entire session, and will actively participate.
Students must communicate all absences with the Site Partner and their One-on-One Coach before the missed
session. Students will be allowed only 2 absences.
○ If a student is absent for a session, they must contact their One-on-One Coach before the next session to
discuss their goals, report their progress and complete missed assignments.
○ Students with more than 2 absences or who have not checked in with their coach after an absence will
be penalized and may lose their place in the program.
● Progress Report Results: Students will have an opportunity to earn $75 at the middle of the program and again
at the end of the program based on the results of the progress report completed by their One-on-One Coach.
Progress reports will be completed with their Coaches during session 4 and session 8. Students will be assessed
according to whether they are:
○ managing their accounts responsibly
○ tracking their expenses monthly
○ evaluating their budget monthly
○ making progress toward their savings goal (a minimum of $200)
○ making progress on their personal goal
*SecureFutures makes all final decisions regarding the amount of scholarship dollars awarded to each student.
I agree to being committed to my role as a Money Coach student/participant and fully understand the obligations
required of me to fulfill my role.
Student/Participant Signature Date
5
Money Coach Program Enrollment Guide
Congrats! You have decided to invest in yourself and join the Money Coach program!
There are a few things you need to do to complete your enrollment.
Make sure to check all these tasks off the list before the first program session.
If you have any questions or issues, contact:
Site Partner:
Name: _____________________________________
Email: __________________________________________ Office Location: ________________
Money Coach Program Manager:
Stephaine Crosley: [email protected]; (414) 273-8101
Student Enrollment Checklist
1) Complete the registration form online. Do this before Orientation.
a) You will receive the link to the form from your site partner.
2) Have your parents sign the consent form.
a) The form is in your Money Coach folder that your site partner will provide.
3) Open savings and he king a ounts at a lo al ank or redit union, if you don’t already have them.
a) Enroll in online and mobile banking.
b) Bring the direct deposit authorization form with you and have the financial
representative help you to complete it.
4) Complete the direct deposit authorization form.
a) The form is in your Money Coach folder and includes instructions.
b) Keep this form safe! It will have private financial information on it.
5) Attend the orientation session. Parents are encouraged to attend!
a) Date and Time:
____________________________________________________
b) Location:
____________________________________________________
6) Return the completed forms to your site partner:
a) Parental Consent Form
b) Direct Deposit Authorization Form
7) Complete Program Pre-Survey.
a) The survey link will be emailed to you after you have completed the Registration Form.
It will come from the Program Manager, Stephaine Crosley.
8) Attend the first program session.
a) Date and Time:
____________________________________________________
b) Location:
____________________________________________________
6
Account Enrollment Guide
A big part of the Money Coach program is learning how to manage your money through savings and checking
accounts. If you don’t already have accounts at a local bank or credit union, you will need to open them before
the first program session.
Things to know before you visit a bank or credit union:
Most financial institutions require that a parent or guardian comes with you to open your account and serve as a
cosigner if you are under age 18. This means that your parent or guardian will have access to your account and
your funds. If you do not want your parent or guardian authorized on your account or you are unable to find a
cosigner, you can open accounts at an Educators Credit Union location. They will open accounts without an adult
cosigner.
Regardless of which financial institution you choose, call the branch location before you go to open your
accounts so that you can verify their requirements and make sure you have all of the documentation you
need. This will save you time and potential frustration.
We encourage all students to open savings and checking accounts, but only a savings account is required for the
program. If you can only open a savings account, be sure to ask if you can get an ATM card to access your funds.
Things to keep in mind when choosing a bank or credit union:
● Is the location convenient? Are there ATMs near home, school, or work?
● Are there any fees (monthly or annual maintenance, overdraft)?
○ If so, is it easy to avoid them by keeping a minimum balance or setting up direct deposit?
● Is there a daily minimum balance?
What to bring with you when you go to open your accounts:
● Official Photo ID
○ Driver’s License or State ID Card (obtained at the DMV)
○ School ID
● Social Security Number
○ If you are not a citizen and do not have a Social Security Number, you can use an Individual
Taxpayer Identification Number (ITIN). Talk to the Program Manager if you need assistance.
● Proof of Address with the student’s name and address
○ Photo ID if it has the student’s current address on it ○ Address Verification Form from the financial institution (requires parent or guardian signature)
○ Any other current, official document on which the student’s name and address are both clearly
printed
■ Utility bill, cell phone bill
■ Current lease or mortgage documents
■ Billing statement from any bills that you pay online
● Direct Deposit Authorization Form
○ Ask the staff member who opens your account to help you complete this and supply the
necessary documentation.
After you have opened your accounts:
Make sure that you know your routing number and account numbers and keep this information safe. You will
need these numbers to complete the direct deposit authorization form if you don’t bring the form with you
when you open your account. Most banks and credit unions will provide you with an official letter or document
that has all of this information. If you don’t get one, go back to the location and ask for it. 7
Student Scholarship Schedule
The Money Coach Scholarship money is awarded based on the following criteria:
● Attendance: Students will be paid $25 per session that they attend (maximum of $200).
Students will work to maintain perfect attendance, will be on-time and stay for the entire
session, and will actively participate. Students must communicate all absences with the Site
Partner and their One-on-One Coach before the missed session. Students will be allowed only 2
absences.
○ If a student is absent for a session, they must contact their One-on-One Coach before
the next session to discuss their goals, report their progress and complete missed
assignments.
○ Students with more than 2 absences or who have not checked in with their coach after
an absence will be penalized and may lose their place in the program.
● Progress Report Results: Students will have an opportunity to earn $75 at the middle of the
program and again at the end of the program based on the results of the progress report
completed by their One-on-One Coach. Progress reports will be completed with their Coaches
during session 4 and session 8. Students will be assessed according to whether they are:
○ managing their accounts responsibly
○ tracking their expenses monthly
○ evaluating their budget monthly
○ making progress toward their savings goal (a minimum of $200)
○ making progress on their personal goal
Based on the description above, here is what you can earn if you participate fully in the
program.
Session one: Attendance + Participation $25
Session two: Attendance + Participation $25
Session three: Attendance + Participation $25
Session four: Attendance + Participation +
Progress Report
$25 + Up to $75
Session five: Attendance + Participation $25
Session six: Attendance + Participation $25
Session seven: Attendance + Participation $25
Session eight: Attendance + Participation +
Progress report
$25 + Up to $75
Total Scholarship Funds Available Up to $350
8
Student Tools
9
Money Coach Financial Goal Checklist
Banking
□ I have opened an account at a bank or credit union. Name of Financial Institution: _______________________
□ I have enrolled in online banking.
□ I have enrolled in mobile banking.
□ I am using online and mobile banking to monitor my balance and transactions.
Date: My Banking To Do List:
Savings Plan
□ I am saving money to help cover the following planned college or career related expense(s):
_____________________________________________________________________________________________
□ The amount I plan to save each month is: $_________________ (should be a minimum of $50)
□ My Savings Balance is on target:
Balance Check: Show your coach your balance using mobile or online banking and enter it here.
Date
Savings
Checking
Date: My Savings Plan To Do List:
10
Budgeting
□ I am tracking my expenses.
□ I track my expenses using: (describe method) _____________________________________________________
□ I have set my monthly spending plan at $ ________________ per month.
□ I have set my monthly saving plan at $ ________________ per month.
□ I understand how to create a budget.
□ I have a written budget in place and use the following tool to monitor my budget: _______________________
Date: My Budgeting To Do List:
College or Career Related Goal
□ I have selected a college or career related goal I want my coach to help me with.
My goal to work on is: _____________________________________________________________
Think about something important to your future where you really want help and want to discuss ideas,
concerns or just get guidance. Examples:
● Navigating the college process
● Living Independently in a dorm, apartment or even with your family
● Getting a part-time job now to help save money and develop work skills
● Getting a full-time job and starting my career right out of high school
● Any other issue that is really important to you like buying a car or getting auto insurance
□ I have a plan I am working on with my coach to achieve this goal.
Date: My College or Career Related Goal To Do List:
11
Week
Food
(snacks, dining out,
groceries)
Transportation
(gas, bus tickets)
Personal Expenses
(cell phone, clothing,
personal products,
salon services, school
fees, other)
Entertainment
(movies, sporting
events, music,
concerts, hobbies)Totals
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
Grand
Total
$ $
Money Coach
Expense Tracking Worksheet
Week 4 ($) : Enter the dollar amount you spend each day in each category.
Week 1 ($) : Enter the dollar amount you spend each day in each category.
Week 2 ($) : Enter the dollar amount you spend each day in each category.
Week 3 ($) : Enter the dollar amount you spend each day in each category.
12
Week
Food
(snacks, dining out,
groceries)
Transportation
(gas, bus tickets)
Personal Expenses
(cell phone, clothing,
personal products,
salon services, school
fees, other)
Entertainment
(movies, sporting
events, music,
concerts, hobbies)Totals
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
Grand
Total
$ $
Money Coach
Expense Tracking Worksheet
Week 4 ($) : Enter the dollar amount you spend each day in each category.
Week 1 ($) : Enter the dollar amount you spend each day in each category.
Week 2 ($) : Enter the dollar amount you spend each day in each category.
Week 3 ($) : Enter the dollar amount you spend each day in each category.
13
Week
Food
(snacks, dining out,
groceries)
Transportation
(gas, bus tickets)
Personal Expenses
(cell phone, clothing,
personal products,
salon services, school
fees, other)
Entertainment
(movies, sporting
events, music,
concerts, hobbies)Totals
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
Grand
Total
$ $
Money Coach
Expense Tracking Worksheet
Week 4 ($) : Enter the dollar amount you spend each day in each category.
Week 1 ($) : Enter the dollar amount you spend each day in each category.
Week 2 ($) : Enter the dollar amount you spend each day in each category.
Week 3 ($) : Enter the dollar amount you spend each day in each category.
14
Week
Food
(snacks, dining out,
groceries)
Transportation
(gas, bus tickets)
Personal Expenses
(cell phone, clothing,
personal products,
salon services, school
fees, other)
Entertainment
(movies, sporting
events, music,
concerts, hobbies)Totals
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
Grand
Total
$ $
Money Coach
Expense Tracking Worksheet
Week 4 ($) : Enter the dollar amount you spend each day in each category.
Week 1 ($) : Enter the dollar amount you spend each day in each category.
Week 2 ($) : Enter the dollar amount you spend each day in each category.
Week 3 ($) : Enter the dollar amount you spend each day in each category.
15
Projected
Monthly
Actual
Month 1
Actual
Month 2
Actual
Month 3
Actual
Month 4
Scholarship $50
Progress Report Scholarship Bonus
($75 opportunity month 4 and 8)
Jobs (work, babysitting, chores)
Other (allowance, parent/family)
TOTAL Income
Monthly Savings
Snacks
Dining Out
Groceries
Entertainment
Movies
Music Downloads/DVDs/Video Games
Weekend Fun/Sporting Events
Concerts/Hobbies
Personal Expenses
Personal products
Cell Phone
Clothing/Shoes/Shopping
Salon Services
Other
Transportation - money you pay out
of your income
Gas/Car maintenance/Insurance
Public Transportation
TOTAL Expenses
TOTAL BUDGET
Income - Savings - Total Expenses =
(surplus/deficit)
Money Coach: Budget Worksheet
Food
Name:
INCOME
EXPENSES
SAVINGS: PAY YOURSELF FIRST!
16
Progress Report Tracker
Use the tool below to track your progress. For each area, work with your coach to determine whether you are
on track, needs improvement, or needs significant improvement. Record your assessment below.
If you would like to calculate the bonus amount you will earn, use this scoring guide.
● Each assessment area is weighted the same.
○ On Track is worth 20 points.
○ Needs Improvement is worth 10 points.
○ Needs Significant Improvement is worth 0 points.
● Add up the points earned. Divide that number by 100. Multiply that by $75 to find how much the you
earned.
○ (Points earned/100) x $75 = Amount earned
Student is: Progress Report 1 (Session 4) Progress Report 2 (Session 8)
Tracking their expenses
Monitoring their budget
Managing their accounts
Making progress toward their savings goal
Making progress toward their personal goal
Amount Earned
Progress Report 1 Notes: Progress Report 2 Notes:
17
18
Session Activities
19
20
S2 Expense Tracking and Budgeting Exercise
Before you can build a budget and make decisions about how you plan to use your money in the future, you need to know
how you are currently using it. One way to do that is to track your expenses and note the trends you see. This will give
you a realistic starting point for building a budget. This activity will give you practice with tracking expenses, making
observations about spending habits, and building a budget.
Step One: Track Expenses! On the next page, you will find a list of expenses for a 17 year old named Tiffany. The list represents one month of her
expenses. Categorize and summarize her spending to get a picture of how she typically spends her money.
Directions:
1. Review the list of transactions below (Figure 1).
2. For each transaction, select a spending category from the list below and enter it in the Spending Category
column.
a. Food/Groceries
b. Entertainment
c. Auto/Gas
d. Personal items (clothing, shoes, personal care items)
e. Miscellaneous
f. Savings
3. Add up the totals for each type of expense using the Spending Summary table (Figure 2).
4. Answer the discussion questions with your small group.
Discussion Questions:
1. What did you notice about Tiffany’s spending habits?
2. Which of these expenses are needs and which are wants?
3. Which of these expenses are recurring and which are one-time?
21
Figure 1
Tiffany’s Monthly Spending & Saving
Date Transaction Amount Spending Category
5/2/17 Mobil Gas Station (20.00)
5/4/17 McDonalds (7.00)
5/4/17 Kohl’s (25.00)
5/5/17 Transfer to Savings (10.00)
5/8/17 AMC Theater (15.00)
5/8/17 Starbucks (5.00)
5/9/17 Subway (6.00)
5/10/17 Pick N Save (10.00)
5/12/17 Walgreens (15.00)
5/15/17 Transfer to Savings (10.00)
5/15/17 Starbucks (5.00) Figure 2
5/18/17 Concert Tickets (45.00) Expense Type Amount
5/18/17 Taco Bell (7.00) Savings
5/20/17 Mobil Gas Station (20.00) Food/Groceries
5/22/17 Haircut (35.00) Entertainment
5/23/17 Craft Store (8.00) Auto/Gas
5/24/17 Jimmy Johns (7.00) Personal Items
5/26/17 AMC Theater (15.00) Miscellaneous
5/28/17 Jamba Juice (5.00) Total
22
Step Two: Build a Budget! Now that you can see how Tiffany likes to spend her money, make a realistic budget for her. You may have to reduce the
spending in some categories in order to make sure that Tiffany has enough money to cover her necessities. Keep in mind
that the goal is to create a budget that Tiffany can realistically stick to. Take her spending habits and preferences into
consideration.
Directions:
1. After reviewing Tiffany’s spending habits and trends, come up with a monthly spending limit for each category.
Enter the amounts into the table below (Figure 3).
2. Add up all of the amounts and determine if you have a surplus or a deficit. If you have a deficit, adjust your
budget so that it balances.
3. Answer the discussion questions with your small group.
Discussion Questions:
1. Do you think Tiffany will be able to stick to this budget?
2. Could you stick to this budget? How would yours be different?
3. Imagine that, in 6 months, Tiffany will be going on a trip and needs $150 of spending money.
a. How much should she save each month? Each week?
b. How would you adjust her budget to make sure that she reaches her goal?
c. Aside from decreasing her spending, how else could she reach her goal?
Figure 3
Tiffany’s Budget
Monthly Spending Limit Weekly Amount (divide by 4)
Income
Part-time Job $200 $50
Expense Category
Savings (Pay Yourself First)
Food/Groceries
Entertainment
Auto/Gas
Personal Items
Miscellaneous
Total
Surplus/Deficit Expense total - income =
23
24
S3 Financial Vision Board Activity
Objective: To create a visual representation of your goals so that you are reminded daily of what you are working
towards.
Use the material provided to you by your coaches to create a vision board that reflects your future lifestyle: family,
career, living, vacations, and anything else that matters to you. As you are exploring different magazines to bring
your vision to life, keep in mind what it will take to live this lifestyle.
1. Explore different magazines and cut out pictures and quotes that reflect the life you want to live in the future.
Apply the pictures and quotes on your poster board however you want. You create your vision of your future!
2. Use markers and/or pens to draw other things you want in your future, but cannot find in magazines.
3. In your small group, talk about your vision board -- why did you choose certain pictures and quotes?
*Remember this is your vision board. Use your creativity. Be thoughtful. Dream big!
Discussion questions:
● How will knowing how to manage your money impact your future dreams and goals?
● What will it take to get there?
● What can you do now to work towards those goals?
● Do you feel confident that you will be able to achieve your goals? Why or why not?
25
Week
Food
(snacks, dining out,
groceries)
Transportation
(gas, bus tickets)
Personal Expenses
(cell phone, clothing,
personal products,
salon services, school
fees, other)
Entertainment
(movies, sporting
events, music,
concerts, hobbies)Totals
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
S $
M
T
W
TH
F
S
Totals $
Grand
Total
$ $
Money Coach
Expense Tracking Worksheet
Week 4 ($) : Enter the dollar amount you spend each day in each category.
Week 1 ($) : Enter the dollar amount you spend each day in each category.
Week 2 ($) : Enter the dollar amount you spend each day in each category.
Week 3 ($) : Enter the dollar amount you spend each day in each category.
26
Projected
Monthly
Actual
Month 1
Actual
Month 2
Actual
Month 3
Actual
Month 4
Scholarship $50
Progress Report Scholarship Bonus
($75 opportunity month 4 and 8)
Jobs (work, babysitting, chores)
Other (allowance, parent/family)
TOTAL Income
Monthly Savings
Snacks
Dining Out
Groceries
Entertainment
Movies
Music Downloads/DVDs/Video Games
Weekend Fun/Sporting Events
Concerts/Hobbies
Personal Expenses
Personal products
Cell Phone
Clothing/Shoes/Shopping
Salon Services
Other
Transportation - money you pay out
of your income
Gas/Car maintenance/Insurance
Public Transportation
TOTAL Expenses
TOTAL BUDGET
Income - Savings - Total Expenses =
(surplus/deficit)
Money Coach: Budget Worksheet
Food
Name:
INCOME
EXPENSES
SAVINGS: PAY YOURSELF FIRST!
27
28
S4 Money Path
Objective
Students will:
● Understand what financial planning is and why it is important
● Build financial goals over your lifetime utilizing state of the art financial planning technology
● Revise your goals and savings plan to increase the likelihood of achieving your financial goals
Introduction
SecureFutures offers a program called Money Path. Money Path is a lesson focused on financial planning for young
adults. You will take on the profile of a 23 year old and learn how to build a real financial plan using state of the art
financial planning software called MoneyGuidePro.
This lesson will be facilitated by a SecureFutures volunteer who has been trained by us to deliver this lesson. Because
this lesson focuses on financial planning and uses MoneyGuidePro we have recruited financial advisors who use the
software in their profession to deliver the lesson.
Lesson Notes:
29
30
$3,333
Everybody pays this 6.20% amount to the government out of
every paycheck. It is used to fund current and future social
security benefits.
FICA @ 6.20% of
Income$207
Everybody pays this 1.45% amount to the government out of
every paycheck.
Medicare is the federal health insurance program for people
who are 65 or older.
Medicare @ 1.45%
of Income$48
This is the amount withheld from each paycheck and sent to
the Internal Revenue Service. The amount you pay depends on
your taxable income.
Federal Tax
Withholding$269
This is the amount withheld from each paycheck and sent to
the state you live in. The amount you pay is based on your
taxable income. Some states don't have a state tax. The tax
for states that do ranges from approximately 3% - 13 % of your
taxable income.
State Tax
Withholding$104
$628
$2,705
Budget Activity for a Young Adult
Creating a budget that helps you plan your spending and saving wisely will put you on a path to financial
success. It is the key to reaching your short and long term financial goals. Complete the budget
simulation activity below to take a pracitce run. Where requested, enter a spending or savings amount.
You have a list to choose from in many categories. Make the choice that closest matches your money
personality. Once complete, determine if you have a suplus or deficit. Revise your budget until your
budget is balanced ($0 surplus or deficit). Be sure you are saving money for the future to!
S5
Monthly Income and Taxes
Taxes (We calculated these for you. Be sure to review them for understanding.)
Gross Income (This is how much you get paid.)
Net Pay-Direct Deposit
Total Taxes
You earn $40,000 annually from your career which is $3333 monthly.
You pay Uncle Sam and the U.S. Governement taxes each paycheck.
31
Rent-Cool
@ $800
Rent-Comfortable
@ $650
Rent-Cozy
@ $500
Gotta Have the Best
@ $200
Trendy but Practical
@ $100
Thrifty
@ $50
Student Loan
Payment
(We set this for you)
You Name It! I'm
Doing It!
@ $300
Weekend Fun
@ $200
Finding Cheap Fun
@$100
Entertainment (Pick One)
Student Loan Payment (We set this amount for you.)
Housing/Rent(Pick One)
MONTHLY SPENDING AND SAVING CHOICES
Clothing (Pick One)
Enter Your Choice
$$$
32
Gas (Heat)
Electricity
Cable (Pick One)
♦ Don't want it
@ $0
♦ Basic Cable
@ $40
♦ Preferred Cable @
$80
Internet (If you want
it)
@ $40
Cell Phone(Pick
One)
♦ major carrier @
60/mo.
Or
♦ bargain carrier @
20/mo.
Savings Account
(Short Term Needs)
Enter $50 - $200
Investment Account
(Intermediate Needs
for 5-10 Year Goals)
Enter $50 - $200
You can paint a picture of what retirement looks like for
yourself.
♦What lifestyle do you desire?
♦What activities will you engage in?
♦How will you be active with your community?
♦Do you want to do any part-time work?
No matter what lifestyle you choose, you will be responsible
for paying yourself an income. You will likely receive some
social security, but not not nearly enough to meet all of your
needs.
Bottom line, you need to save money and invest it wisely so
you have a nest egg built up for retirement.
Choose ONE of the
three choices
below:
♦ I'm not too
worried about this at
my age.
$0.00 per month
♦I guess I should
start saving a little
for retirement.
$100 per month
♦I'd like to get a
jump on this and
start early.
$200 per month
Utilites are important services. Some you have to have and
others, like cable, you get to choose if and what level of service
you want.
Utilities
Savings (Enter Your Amounts)
33
Groceries + Go out
for lunch and Take
Out for dinner
3x/Week
@ $400
Groceries -Home
cooking + bring my
lunch to work
@ $275
Groceries - Bargain
Hunter and bring my
lunch to work
@ $200
New Sports Car @
$600/mo.
New mid size Car
@ $400/mo.
Used Low Miles @
$300/mo.
Used High Miles @
$225/mo.
Bus and Bike
@ 100/mo.
This is the amount I pay each month for health insurance. Insurance Premium
I'm young and healthy so this should be a reasonable expense.Perscriptions and
Meds
Personal Care
Vacation - Local
Plans
Plenty to do around
here at no cost.
Save $0.00 per
month
Vacation - 1 trip @
$1200/yr.
Save $100 per
month
Vacation - 1 trip @
$2400/yr.
Save $200 per
month
Vacation (Pick One)
Medical/Healthcare (We set these amounts for you.)
Food (Pick One)
Transportation (Gas, Maintenance, Loan Payment, Insurance)
(Pick One)
34
Books, Games,
Home Items
Enter an amount.
A good estimate is
$20 - $40 per
month
Gifts
(birthdays, holidays,
for family and
friends)
Gym Membership
(Pick One)
(Full Service)
@60/mo.
(Basic Service)
@10/mo.
Don't Need One!
Exercise on My Own
@$0.00/mo.
Donations and help
others
(church, family,
community services,
charities)
Other - Hobbies
Other - Pets
Food, vet, toys
$0
$2,705
Total Expenses and Savings
Miscellaneous (Enter Your Amount)
Monthly Surplus or Shortfall
Don't forget about your hobbies! Be sure to put some money
aside for these types of expenses.
♦ If the number is positive Congratulations. You can use the surplus to increase your
savings goals.
♦ If the number is negative it simply means you need to revisit the choices you made
and revise your spending.
35
1 2 3 4 5
2.00% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
1 3 5 7 10
5.00% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
5 10 15 30 43
8.00% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
MONTHLY INVESTMENT AMOUNT =
Compound Growth RateNUMBER OF YEARS
NUMBER OF YEARS
SYSTEMATIC INVESTMENT PLAN CALCULATOR: Savings Account (short term needs from 1-5 years out)
Let's see how you did with your savings plans. (DO NOT ENTER information directly to this table. The results are calculated from
your entries above.)
The three tables below show how your money would accumulate and grow based on the following criteria.
♦Amount you chose to save each month
♦ Hypothetical growth rate
♦ Number of years you will save
Savings Plans
Compound Growth Rate
Compound Growth RateNUMBER OF YEARS
RETIREMENT PLAN CONTRIBUTION CALCULATOR: Retirement Plan Investment Account
(Long Term Goals 10+ years away)
MONTHLY INVESTMENT AMOUNT =
SYSTEMATIC INVESTMENT PLAN CALCULATOR: Investment Account (Intermediate Term Goals- 5-10 years out)
MONTHLY INVESTMENT AMOUNT =
36
S6 To Your Credit
Objective
Students will:
● Understand what credit is
● Understand how credit cards work and how to use them responsibly
● Learn what a credit score is and what determines the score
● Learn about credit reports and how their financial habits are tracked
Introduction
Credit is an important financial concept for you to understand. You will begin to receive credit card offers soon and you
may take out student loans for college. It is critical that you build a good understanding of credit and the role it plays in
your financial life.
Lesson Notes:
37
1
2
3
4
38
A. Account number
Your credit card account number: remember to keep it a secret, or others can use your account.
B. Closing date
The closing date of the statement is the date the credit card company created this statement.
C. Amount of your credit line
The amount of your credit line, or your spending limit.
D. Available credit
A aila le edit is the a ou t of you edit that you ha e ’t o o ed yet, so it’s still a aila le to you.
E. Account summary
The account summary section summarizes your transactions.
F. Payment information
Payment information shows the total amount you now owe, which is also called your new balance.
G. Minimum payment
The minimum payment — Each month you must pay at least this portion of what you owe. If you wish, you may
pay more than the minimum, up to the total amount, if you can. If you want to have good credit, and reduce
the a ou t of i te est you’ll pay, it’s a good idea to pay o e tha the i i u pay e t ea h o th.
H. Due date
The due date — Unless your credit card company receives your payment by this date, they will begin charging
you interest on the amount you owe. Most companies will also charge you a late fee. They may also increase
your interest rate.
I. The Credit Card Act of 2009 information
The Credit Card Act of 2009 o the CARD A t e ui es edit a d o pa ies to list o you state e t ho lo g it ould take to pay off you ala e if you paid o ly the i i u pay e t a d did ’t add a y o e ha ges , a d the total a ou t you’d pay o e that pe iod of time. Your statement must now also show you
how much you would need to pay each month to pay off the balance in three years.
J. Rate information
Rate information shows you how the interest and fees are being calculated.
K. Transactions
In the transactions se tio , you’ll see a list of ea h ha ge a d pay e t you ade i date o de .
L. Payment coupon
The Payment Coupon repeats your current payment information. Include this coupon with your check if you pay
by mail, and be sure to write in your new address if you’ e o ed.
39
Comparing Credit Card Offers
Card A
Card B
Card C
Application Fee none $30 none
Annual Fee $20 $35 none
Introductory Rate 1.9%
for 6 months
0%
for 1 month
1.9%
for 12 months
Interest Rate 15.9% 22.9% 16.0%
Grace Period 20 days 25 days 25 days
Late Payment Fee
and Terms
$25 and
APR is increased
to 24.9%
$35 $25
Over-the-Limit Fee $25 $35 $25
Consider these questions when choosing a credit card:
Is there an introductory rate, what
is it, and how long does it last?
What will my interest rate be after
the introductory rate?
Is there an application fee?
Is there an annual fee?
What is the late payment fee?
Is there an over-the-limit fee?
Are there any other fees, like
account-termination fees or
balance-transfer fees?
How can a fixed rate be changed?
What is the grace period before
interest is charged?
40
What’s In Your Credit Score?
Amounts
Owed
Payment
History
Length of
Credit History
New Credit
Types of
Credit Used
35% 15%
10%
10%
30%
Payment History: Number of accounts paid as agreed, negative public records,
collections, and delinquent accounts. Includes your total number of past due items, how
long they’ve been past due, and how long it's been since you had a late payment.
What You Owe: How much you owe on accounts.
Length of Credit History: Total length of time tracked by your credit report, the
length of time since accounts were opened, and time that's passed since the last
activity. The longer your (good) history, the better your scores.
Types of Credit: Total number of accounts and types of accounts (installment,
revolving, mortgage, etc.) A mixture of account types usually generates better scores
than reports with only numerous revolving accounts (credit cards).
New Credit: Number of accounts you've recently opened and the proportion of new
accounts to total accounts.
Lenders typically also look at factors that aren't included in your credit report, such as
income, employment history, and the type of credit you are seeking.
41
4
Sample Credit Report Credit Reporting Agency
Business Address City, State, 00000
Personal Identification Information
Your Name Social Security #: 123-45-6789 123 Current Address Date of Birth: May 1, 1970 City, State 00000
Previous Address(es) Last Reported Employment: 456 Old Address, City, State 00000 Accountant, Accounting Firm 789 Older Address, City, State 00000 Public Record Information
Bankruptcy Filed 12/95; Milwaukee County; Case ID 765432; Liabilities-$25,200; Personal; Individual; Discharges; Assets-$750
Satisfied Judgment Filed 07/91; Dane County; Case ID 234567; Defendant- Consumer; Amount-$9,342; Plaintiff-XYZ Real Estate; Satisfied 03/92; Verified 05/92
Collection Agency Account Information
Collection Agency (800) 111-1111 Collection Reported 05/97; Assigned 07/97 to Collection Agency; Client- Hospital; Amount-$1040; Paid collection account
Credit Account Information
Company Name
Account Number
Whose Acct.
Date Opened
Months Reviewed
Last Activity
High Credit
Terms Items as of Date Reported Date
Reported Balance Past Due Status
Dept Store
12345 I 4/92 36 9/97 $500 X $0 X O1 1/07
Payment History: 111111111111111111211111111111132211
Auto Finance
987654
I 7/94 48 7/98 $750
0 $300 $0 X I1 12/06
Payment History: 433232111111111111211111111111122211111111111111
Companies that Requested Your Credit File
12/30/06 Equifax-Disclosure 12/15/05 Department Store 10/02/06 Department Store 08/29/05 Credit Card Company 07/08/06 Bank
FICO Score
504
1
2
3
6
5
Payment History Key: 1 = Pays as agreed, 2 = 3059 days past the due date, 3 = 6089 days past the due date, 4 = 90119 days past the due date, 5 = 120 days or more past the due date, 07 = Paying or paid under a special agreement, 08 = Repossession
42
What it all means: Section 1: Basic identification information
Credit reports identify you using a number of pieces of information. These usually include: Your name and current address Social security number Previous addresses Date of birth Driver's license number Spouse's name
Section 2: Public records
This is where any bankruptcies or tax liens are listed. If you have any of these instances on your reports, you probably have poor credit and a low credit score. Section 3: Collection agency information If you don’t pay your bills, a creditor may hire a collection agency to contact you and try to collect what you owe. Section 4: Credit account records and payment history The reports will also have information about all of your credit accounts. Each credit account will be listed along with identifying information about the account, such as:
Date the account was opened The type of account (such as a loan or credit card) The limit on the credit account The current balance The minimum monthly payment Date the account was closed (if it is no longer active)
In addition, each credit account will show if you have been able to pay your bills in full and on time throughout the past five to seven years. Some reports include a simple statement about whether you're a good bill payer such as "always pays bills on time." On the sample, note the series of numbers after “Payment History”: 1= Pays as agreed, 2= 3059 days past the due date, 3= 6089 days past the due date, 4= 90119 days past the due date, 5= 120 days or more past the due date, 07= Paying or paid under a special agreement, 08= Repossession. This section may look different on reports from different agencies, but it will contain the same general info. Section 5: Credit Inquiries There will be a list of inquires that have been made by credit companies about your credit history. This allows you to see who has been asking about your credit-worthiness. Credit companies tend to look for answers to specific questions, such as, "Do you pay your bills?" and "Have you ever filed for bankruptcy?" They will use this information to help determine how much credit, if any, they want to issue to you. Section 6: Credit Score
You are entitled to receive one free credit report every 12 months from each of the three national consumer credit reporting companies: Equifax, Experian, and TransUnion
Visit annualcreditreport.com for your free credit report! 43
Common Mistakes That Can Lower Your
Credit Score
Paying bills late
Not paying the minimum amount required
Keeping debt levels too high
Owning too many credit cards
Not checking your credit report
Not alerting creditor when you move or change names
Not using your full legal name in financial documents
Ways to Improve Your Credit Score
Pay your bills on time
Keep your balance low in relation to available credit
Review your credit report regularly and correct errors
Pay off credit card debt rather than moving it around
to other cards
Make more than the minimum payment
Don’t open a lot of accounts over a short period oftime
44
Loan O
ffice
r and St
uden
t Ans
wer Sh
eet
Loan Ap
plic
ant (F
ill in th
e res
po
nse
s for e
ach ap
plic
ant.
)
Loan Ap
plic
ant Q
ues
tio
ns
1 2
3
1. H
ow m
any t
imes ha
ve yo
u ap
plie
d fo
r cre
dit in th
e last 6 m
on
ths?
2. D
o yo
u ha
ve an
y of th
e fo
llow
ing e
ntr
ies li
sted on yo
ur c
red
it re
po
rt?
●B
ankr
up
tcy
●Se
rio
us L
ate P
aym
ent
●Fo
recl
osu
re
●Ta
x Lie
n (y
ou ow
e tax
es to th
e go
vern
men
t)
3. H
ow m
any o
f the f
ollo
win
g op
en or clo
sed ac
cou
nts ar
e list
ed on yo
ur c
red
it re
po
rt?
4. H
ow ol
d is yo
ur o
ldes
t act
ive c
red
it ca
rd, lo
an or m
ort
gage
?
5. W
hat is yo
ur:
●
Tota
l cred
it lim
it?
●To
tal b
alan
ce of yo
ur o
pen cr
edit ca
rds?
An
swer th
e qu
esti
on
s bel
ow to de
term
ine w
ho ge
ts th
e loan
A. W
hic
h lo
an ap
plic
ant h
as wh
ich of th
ese c
red
it sc
ore
s?
A. 7
66
B. 4
57
C. N
o Cr
edit Sc
ore
B. W
hat is the pr
imar
y fac
tor(
s) af
fect
ing e
ach ap
plic
ant’
s cre
dit sc
ore
? A
.N
egat
ive e
ntr
ies o
n th
eir c
red
it re
po
rt, u
ses m
ost of th
eir a
vaila
ble cr
edit
B
.N
o cr
edit hi
sto
ry
C.
Ever
yth
ing p
oin
ts to a s
tro
ng c
red
it sc
ore
C. W
hat ad
vice wo
uld yo
u giv
e eac
h ap
plic
ant?
A
.N
ot m
uch
. Kee
p pa
yin
g yo
ur b
ills a
nd lo
an pa
ymen
ts on tim
e an
d do
n’t bo
rro
w
mo
ney to bu
y th
ings yo
u ca
n’t af
ford
. B
.Pa
y all b
ills o
n tim
e, ca
rry a lo
wer ba
lan
ce fro
m m
on
th to m
on
th an
d do
n’t
ap
ply fo
r ad
dit
ion
al cr
edit un
til yo
u ha
ve a h
igh
er cr
edit sc
ore
. C
.A
pp
ly fo
r a m
ajo
r cre
dit ca
rd wi
th a l
ow cr
edit lim
it. H
ave a tru
stw
ort
hy
co-s
ign
or a
pp
ly wi
th yo
u, o
pen a s
ecu
red cr
edit ca
rd (u
se yo
ur sa
vin
gs as
co
llate
ral) or ap
ply fo
r an au
to lo
an (lo
an wo
uld be se
cure
d by yo
ur c
ar).
45
S7
Annual Amount
Grants
Scholarships
Work Study
Student Loans (Enter this number after you determine if you have a deficit or surplus in Step 3 below.)
Total Financial Aid $0
Student Employment During College (school year and summer)
Money I have Saved
Gifts from others
Total Other Sources $0
$0
Tuition and Fees
Books
Room and Board: On Campus (use schools actual cost)
OR
Room and Board: Off Campus
Monthly Estimated Expense for:
•Re t + Utilities + Groceries x 8 o ths =
Oth
er
Livi
ng
Exp
en
ses
Other Living Expenses (total "Annual Other Expenses" from "Other Living Expenses Worksheet") $0
$0
$0
Money Coach
Budget Worksheet for College Student
NAME:
This is a great tool for college students to use. Follow this simple four step process to feel comfortable with your monthly finances
while you are in school.
Total Annual Expenses
Sch
oo
l
Exp
en
ses
Fin
an
cia
l A
idO
the
r S
ou
rce
sR
oo
m &
Bo
ard
(P
ick
On
e)
Total Funding Sources
Step 1: Funding Sources
Step 2: Expenses
If you have a deficit: You will need to determine how to cover this shortfall. Options: Work or work more,
student loan, cut expenses or some combination of all three. Make your changes on this worksheet to eliminate
the deficit.
If you have a surplus: Save this money for future expenses. If you already entered a student loan number above
you should consider taking a lower student loan amount. Don't spend your extra student loan money on
expenses you don't need!!
Step 3: Budget surplus or deficit. Do I have enough money to cover all of my expenses?
46
S7
Fixed ExpensesMonthly Projected
Cost
Cable and Internet
Car insurance (Annual premium divided by 12)
Renter's Insurance
Parking fee
Car maintenance and repairs (Annual amount divided by 12 months)
Cell phone (basic charges)
Car loan payment
Money set aside for savings
Total Fixed Expenses $0
Variable Expenses
Groceries
Coffee, Snacks, Soda, etc.
Dining out
Music downloads
Weekend Fun (movies, theater, concerts, sporting events, etc.)
Medical (including prescriptions)
Hair and nails
Clothing
Laundry and dry cleaning
Health club
Credit card monthly payment
Public transportation
Gas for car
Other
Other
Total Variable Expenses $0
Total Other Monthly Expenses $0
X 12 months = Annual Other Expenses (Total will populate "other living expenses" above) $0
Oth
er
Livi
ng
Exp
en
ses
Other Living Expenses Worksheet
47
Enter Monthly Amounts Projected Monthly Monthly Monthly
Wages
Gifts
Other
TOTAL Income $0 $0 $0 $0
Monthly Savings
Mortgage/Rent
Water bill
Energy bill (gas and electric)
Homeowners or renters insurance
Internet and Cable
Other
Grocieries
Dining Out
Snacks, Soda, etc.
EntertainmentMovies
Music Downloads/DVDs/Video Games
Weekend Fun, Events, Concerts, Hobbies
Tickets to sporting events
Personal Expenses
Personal products
Health/Dental/Vision Insurance Premiums
Medical and Perscription Expense
Cell Phone
Loan Payments (car, student)
Clothing/Shoes/Shopping
Salon Services
Other
Gas/Car maintenance/Insurance
Public Transportation
TOTAL Expenses $0.00 $0.00 $0.00 $0.00
TOTAL BUDGETIncome-Saving -Total Expenses= (surplus/deficit) $0 $0 $0 $0
Money Coach: Budget Worksheet for Young Adult Starting Career
Name:
Food
Transportation
INCOME
SAVINGS: PAY YOURSELF FIRST!
Housing and Utilities
48
Vehicle Acquisition
In an ideal world, a car dealer helps you find the perfect car for you at the perfect price, and you drive away with a smile on your face and many happy years ahead of you. And that's how it does work for many of those who did their homework in advance, learning how to navigate the process and how to work with dealers. Because some dealers put more emphasis on their profits than on their customers' satisfaction, educated car-buyers must know what they want and for how much, so that they make the transaction smooth and comfortable with no regrets as they leave the lot.
Preparing to Buy a Vehicle
If you are about to buy a vehicle, here are some important things to consider.
Know what you want
A popular recommendation is that your total monthly car payments should not exceed 20% of
your take-home pay.
Think of the future costs that your car will incur. They might affect your decision to buy.
It is a good idea to write down what you want in a car. This goes for buying new, buying used, or leasing. If you shop at a dealer, the salesperson will want to know your preferences anyway; this saves him or her valuable time. Write down requirements such as these:
The price range you want to spend Type of vehicle—sedan, SUV, minivan, etc. Make Model Features you want Mileage range Age range How much you can afford to spend each month, if you finance Any other preference: color, engine size, luxury options
Do you want your vehicle new or used? Here is a quick review of the advantages of each:
Buying new
You can get it the way you want it There is less of a history behind it Better safety features Better technology New warranty Better fuel efficiency Maintenance included The feeling of having a new car
49
Buying used
Less expensive (this is the biggest advantage) Insurance costs less, on average You can still get a warranty Parts may cost less Scratches and dings to the car are usually less stressful to look at
What costs should you consider? Estimate the true cost of ownership
Your monthly car payments are one thing. Have you considered the true cost of ownership over the course of the vehicle's life? Although one car you like might be less expensive to buy than another one you like, it may ultimately be more expensive to maintain over time. This is important to remember when you just can't decide between two choices and you need a little nudge to move you in one direction.
You might save $1,000 or so by going with one of the two, but the purchase price is only the most immediate and obvious price. Think of three, four, or ten years down the road. Is the insurance on one more expensive than the insurance on the other? How will the make and model affect your gas consumption? Will there be special maintenance needed? How does the depreciation compare? Does one of them get tax credits?
What is involved in the true cost?
You might find that you can afford to buy the cheaper one but not afford to own it at time goes on. Here are the main costs of ownership to consider as you own your vehicle:
The price of the vehicle Taxes Fees for registration Fuel Gas mileage Insurance Maintenance Repairs Tax credits Financing—that is, the interest you must pay on your loan Depreciation Trade-in value Dealer service contract or other warranty Fees for registration Fees for emissions testing (in some states)
Online calculators can help you plug in the variables above to arrive at an estimate that spans a certain time period. Ultimately, you will want to put certain costs—repairs, gas, regular maintenance, fees, insurance—into your monthly budget. It's also a good idea to set up an emergency fund that you can tap if you have a big sudden expense.
50
Question 1:
What is a vehicle's cost of ownership made of?
The price you paid for it
The various expenses you will pay for the vehicle over the time that you own it
Its depreciation The interest you will pay on your loan
ANSWER: The various expenses you will pay for the vehicle over the time that you own it. Cost of ownership takes into account any costs you will pay while owning it.
Question 2:
Cars with the lowest prices will necessarily have the lowest costs of ownership over time.
True
False
ANSWER: False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.
Question 3:
What is probably the biggest advantage of buying a vehicle used instead of new?
The state of the safety features
The price
The amount of maintenance included The fuel efficiency
ANSWER: The price. For most people, price is the biggest advantage.
Leasing a Vehicle
To buy or to lease? Auto leasing has grown greatly in popularity as an alternative to owning. Leasing isn't just a matter of plopping down some rent every month in return for the use of a nice car. You also have responsibilities.
How it works
Leasing means paying for the use of a vehicle over a specific period of time. When you sign a lease, you agree to make regular monthly payments on it, maintain it, pay taxes on it (including sales tax), pay license fees, and buy insurance for it. As part of the lease, you agree to keep the vehicle for a certain number of months (the maximum is usually 48 months) and then turn it in at lease end. With many leases, you have the option of buying the vehicle at the lease's end.
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When your lease ends, you must turn the vehicle back in to the leasing company with no more than expected wear and tear, and within the mileage limit specified in the contract. If you go over this limit, you must pay a fee. If there is damage, you must pay for that.
A word about insurance
Although you are leasing rather than buying, you still must maintain auto insurance on your car. The coverage may be more or less than you would normally buy. The price varies by company, but a typical contract might require $100,000 of liability coverage per person and $300,000 per occurrence and $50,000 for property damage, and both comprehensive insurance and collision insurance. As with any form of insurance, it pays to shop around before you buy and to look into all available discounts that insurance companies offer.
To help you decide whether to buy or lease, let's look at the major pros and cons.
The advantages
The convenience of turning in the car at lease's end rather than having to sell it or trade it in. You can usually pay less with leasing, though this depends on several factors. Generally, you pay
for the portion of the vehicle that you will actually use in time. There is usually little or no down payment required. The sales taxes you pay on your monthly payments are tax deductible in most states. Sales taxes are spread out, since they are levied on the monthly payments. You can negotiate the value of the car. Most leases come with gap insurance included. Gap insurance pays off the difference between
what you owe on the lease and what the car is worth in the event that it is totaled.
The disadvantages
Before you sign on the dotted line, consider these disadvantages:
You might be required to pay more for insurance on the vehicle than you would pay on a car you bought.
If you are a perpetual leaser, you will be stuck with car payments that never end. You will be penalized if you exceed the yearly mileage limit. This limit is usually 10,000–15,000
miles and varies according to company. If you buy the car when the lease ends, you'll pay more than if you had bought the car outright. Breaking a lease early results in a big termination fee. You will most likely have no equity in the vehicle. If there is damage or excessive wear and tear, you will have to pay to have those repaired.
Should you lease?
So is leasing a good idea for you? Consider the following things as well:
Want to customize? Since the vehicle does not belong to you, you can't make any changes to it. That means no repainting or customizing.
How do you treat your cars? If you are tough on your cars or irresponsible, you will have to pay for any damages and any wear and tear that is deemed excessive.
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Are you financially stable? Your financial situation should be stable if you want to lease, because you will be committed to your auto. Ending your lease early will cost you extra, and you may also have to pay all the remaining payments.
How much do you drive? Estimate how much you drive in a year. Is it more than the amount specified in a lease, meaning between 10,000 and 15,000 miles? If it is, you'll have to pay fees for the excess mileage when the lease ends.
How is your credit? You need a very good credit rating in order to lease. If your credit is poor, you may pay a higher lease rate (which is factored into your monthly payments).
Question 1:
When you lease a car, who pays for the insurance on it?
The dealer
You
The dealer and you split the cost down the middle.
ANSWER: You. You must pay for the insurance on it.
Question 2:
Most car leases state an annual mileage limit.
True
False
ANSWER: True. The limit is usually between 10,000 and 15,000 miles.
Question 3:
If you are leasing a new vehicle and planning to drive it more miles than are allowed in the
contract, _______.
You can do so without an extra charge
You will have to pay a fee for the excess miles
You will have to return the vehicle early
ANSWER: You will have to pay a fee for the excess miles. The contract specifies a certain number of miles that you can drive.
Building Your Vehicle Budget
Responsibilities of owning a vehicle
Owning a vehicle is a big responsibility. Although we associate it with freedom, many older people joke that their cars actually own them. They have to make payments on it, they have to pay for insurance, they have gas prices to worry about, and they must worry about getting into accidents. And then there is the looming threat of big repairs. If the engine dies, do you have $2,000 sitting around to fix it?
Your total monthly car payments should not exceed 20% of your take-home pay.
It is a good idea to set up a separate fund for big repair costs.
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Budget accordingly
Most people will set aside money every month to pay for a vehicle, whether it is to buy it in one lump sum or to pay off a loan over time. How much can you afford to pay for a new car, truck, minivan, or other vehicle? Factor that in so that you don't get sold on something you can't afford. A dealer will ask you how much you can afford so that he or she knows what to offer you. Having a specific number handy can help you when it comes time to negotiate with a dealer. Will you be buying with a lump sum, or do you need to take out a loan? The answers to these questions will influence your budget.
A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
Sources of financing for a vehicle
You have many sources at your disposal.
The dealer. Many car buyers finance their purchases through their car dealer, who has access to loans offered by a number of finance companies, banks, and savings and loans. Generally, when you buy a car, the salesperson will ask you if you plan to finance your purchase, how much you plan to provide as a down payment, and what type of monthly payment you can afford. The major benefit of going through the dealer is convenience, as you can buy a car and finance it in one stop. The major disadvantage is that the terms of the loan may not be as favorable as you can get elsewhere.
Your bank or credit union. Borrowing from a financial institution, whether a physical one or an online one, is another option. Before you fill out a loan application, check and compare rates for loans at various banks or credit unions. Once you find the financial institution with the best terms for the type of loan you want, you can apply for the loan either before or after you've found the car you want to buy. By applying before you find a car, you can get pre-approved for a loan, leaving you in a strong position when negotiating a price on the car you want to buy at a car dealership.
Estimate ongoing costs for insurance, gas and maintenance
Your budget should include money set aside for regular expenses. That means insurance payments (which you can pay once every three months, six months, or year if you want), gas, regular maintenance like oil changes and tire rotations, annual license renewal, and unexpected repairs. Once you have owned a car for a while, you can estimate all but the unexpected repairs and budget them as needed. For the unexpected repairs, it is a good idea to set up a separate fund at your bank or credit union and add to it every month so that you will breathe easily when a big repair comes.
Question 1:
When financing a car, your options include _______.
Brick and mortar banks, credit unions, and savings and loans Internet banks A loan from a relative
All of the above
ANSWER: All of the above. You have several available options.
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Question 2:
Before you buy a car, you can get a pre-approved loan from a financial institution.
True
False
ANSWER: True. This can be to your advantage when negotiating the terms of the deal.
Question 3:
If your take-home pay after taxes is $1,000 a month, then your car payments should ideally be how
much at the most?
$100
$200
$400 $500
ANSWER: $200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
Choosing a Vehicle
How to research potential vehicles
A simple Google search for a phrase like "used car sites" will bring up a plethora of Websites that list used cars being sold around the country, usually at dealerships. Sites like cars.com, usedcars.com, autosite.com, autotraders.com, carwizard.com, and carprices.com are common. A search on your local Craigslist will bring up used cars from both dealerships and individuals. Of course, there is still your local newspaper, which will advertise available cars and dealer specials.
Carfax provides online vehicle history reports on used vehicles.
It's important to be the one in control of the negotiations.
There are also sites that provide more useful information than just listings. Edmunds.com and Consumer Reports are among the most popular.
Compare prices
Compare prices of cars you are interested in. The Kelley Blue Book lists both wholesale and retail prices for used cars. The wholesale price is what the dealer originally paid for it. The retail price is what the dealer is charging you for it. The Kelley book will give you a sense of what a particular make and model is worth, on average, so that you can assess what dealers are asking. You can also go to Kelley's Website and search for cars and get information, reviews, and car value information.
The Consumer Reports Used Car Price Service, which you can find online, provides full reports on used cars.
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Finding car histories
You may have heard of Carfax, a Web-based service that provides vehicle history reports on used vehicles. Many dealers now offer Carfax reports for their vehicles. You can also get them online by providing some basic information about the vehicle in question. Some services are free, and others must be purchased.
Talk to mechanics
Sometimes, auto mechanics will buy a used car that the previous owner decided was too expensive to fix, and offer it for sale on the lot. Many new car dealers will also sell used cars on their lots. And it can help to ask family or friends if they are interested in selling a vehicle. Some of them can give you a good deal (and possibly interest-free financing).
Speaking of mechanics—get the vehicle inspected by a good, trusted mechanic. It could save you a ton of money down the road.
Negotiating a fair price
For many people, negotiating for a good price on a vehicle ranks up there with getting a root canal. But learning to negotiate can save you a lot of money. First, though, get the preliminaries taken care of. Identify the car you want, arrange financing, and locate some sellers. Know what add-ons you might want. By the time you get to negotiating, the price should be the only thing not settled on. Here are some things to know about negotiating:
Haggling. Even if a vehicle is advertised with a "no haggle" price, there is still sometimes room to haggle, so it is worth considering.
Know the value of the vehicle you're negotiating. This can work in your favor if the salesperson is asking a price that's higher. Consult a source such as the Kelley Blue Book for values. Check more than one price guide (such as Edmunds).
The prices involved. When you negotiate, you want to pay close to the dealer's price (the wholesale price), which is what the dealer paid for it. The dealer will want to stay close to its retail value (which is higher) for maximum profit. There will also be the "blue book value," which will not be listed and which will most likely be somewhere in the middle. In case the dealer's cost isn't apparent or you can't get it from the dealer, you can find it online on sites like Autosite.com and Consumerreports.org.
How it begins. The dealer will probably ask you how much of a monthly payment you can afford to pay. Because dealers have ways of arranging financing, they know how to squeeze extra dollars out of you even while staying within your monthly payment range. This is why experienced car-buyers put off telling the dealer how much of a monthly payment they can make until after they have settled on a price.
Don't go first. Experienced negotiators wait for the dealer to name the first price; that way, they can go lower, something they probably couldn't do if they were the one to name the first price.
The attitude. Cultivating an air of detachment also works in your favor (in other words, be ready to walk away if need be) because a salesperson who sees that you are attached to a car has a lot of leeway with you.
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Trade-ins. Knowledgeable negotiators recommend not bringing your trade-in into negotiations until you have first agreed on a price for the car.
Take control. It's important to be the one in control of the negotiations. That might mean telling the dealer you need to go home to think about it. Dealers expect this. They will likely call you over the next few days to sweeten the deal, either with a lower price or some free add-ons.
Compare prices, too. Get quotes from several dealers and bring them with you to negotiate. Using them can make dealers compete for your business; they might match other offers.
In closing. Once you have agreed on a price, you will get the sales contract. This contract will list additional costs such as sales tax, document fees, and perhaps service fees. Know about these beforehand so that you will have a more accurate price that you will ultimately pay. You can view a sample sales contract here.
How to register your vehicle
Once you've finally got your vehicle, you have to register it with the Department of Motor Vehicles. This involves getting the title to it. The title is a legal form that establishes you as the legal owner of the vehicle. When the vehicle is titled in your name, you are recognized as the owner of it. If it is titled in more than one person's name, then all of those people own it. That means that they are also held responsible for paying fees, taxes, insurance, and accident expenses. You should always think carefully before sharing a title. The process varies somewhat by state, as do the fees. If you buy a new car, the dealer and the lender will handle the paperwork on the title. The lender will keep the title until you pay off the loan, then mail it to you.
If you buy a used car from a private seller, you'll need to have the seller sign the title over to you. You and the seller can handle the title transfer by signing the appropriate sections on the back of the title.
Next, you need to go down to the DMV to register the transfer. The paperwork you need will usually include the signed title, which will include the vehicle identification number (VIN) and odometer reading, and possibly a bill of sale showing the purchase price. Your DMV will then record the title transfer and reissue the title in your name. You will also need to get your own license plates and pay sales tax on the vehicle.
You can find a sample title at http://www.wisconsindot.gov/Documents/dmv/vehicles/title-plates/title-sample.pdf.
You can find the application at http://www.dot.wisconsin.gov/drivers/forms/mv1.pdf.
The title is an official document. For protection, make sure it is not kept in your vehicle. Keep it among your records at home.
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Question 1:
When negotiating the price of a car, which starting point is likely to save you the most money?
The asking price of the car
The dealer's price
The manufacturer's suggested retail price None of the above
ANSWER: The dealer's price. The dealer's price is what the dealer originally paid for it. Negotiating up from this, rather than down from the asking price, may save you more money.
Question 2:
When shopping for a car at a dealership, what might be the purpose of mentioning other
dealerships that are offering the same car?
The dealer might match their prices.
To get the dealer off your back. To make you look more intimidating. There is no purpose of mentioning those other dealerships.
ANSWER: The dealer might match their prices.. The intimidation might work for some, but the main purpose is to make the dealer compete with the other dealers to get your business.
Question 3:
If you show interest in a vehicle on the dealer's lot but you decide to walk away during negotiations,
what can you expect the dealer to do in response?
Call you later and make you another offer
Ignore you Give you all the time you need and not call you None of the above
ANSWER: Call you later and make you another offer. As a rule, if you show interest, the dealer will want your business and may contact you with a new offer.
Insurance and Maintenance for Your Vehicle
If you have a car, truck, minivan, or other vehicle, you most likely already have auto insurance on it. It's required in some form or other in nearly every state. Most drivers understand the need for auto insurance because they know that the costs of an accident can be very high (even into the hundreds of thousands of dollars), and insurance is not prohibitively expensive. It's a small price to pay for peace of mind while you're behind the wheel. But does your insurance cover what you need it to cover? Does it cover too much or too little?
Liability coverage pays for damages that you cause to someone else.
States require minimum levels of liability insurance.
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Liability coverage
Liability coverage is so named because it pays for damages that you cause to someone else. It does not cover you. Liability coverage is offered for two scenarios: bodily injury and property damage. Actual coverage amounts vary, and you can increase yours for an extra charge on your monthly premium. Bodily injury covers medical and rehabilitation expenses when an insured driver causes bodily harm to another person and is deemed responsible for it. Property damage pays for property that an insured driver destroys; for example, if he or she hits a fence or another car. States require certain minimum levels of liability insurance. The insurance covers anyone driving the insured vehicle with the owner's permission.
Liability coverage is often presented as a series of three numbers separated by slashes, e.g., 25/50/10. These numbers refer to the three limits on bodily injury per person, bodily injury per accident, and property damage are covered separately. Here are examples from three states:
Wisconsin: 50/100/15 Minnesota: 30/60/10 California: 15/30/5
*Source: The American Institute of Certified Public Accountants
Liability also covers legal fees if you are sued and found responsible for causing damage to another.
Other coverage
You can supplement your liability coverage with other forms of coverage:
Collision. Collision coverage is for crashes. It pays for damages to a vehicle; if the vehicle is totaled, it pays the cash value of the vehicle. Collision coverage is optional, but if you take out a loan, the lender may require you to carry it.
Comprehensive. Comprehensive coverage is for damages to your vehicle that are caused by incidents other than collisions. Examples of these incidents are theft, vandalism, weather damages, or hitting animals.
Medical payments and personal injury protection. Medical payments and personal injury protection both cover medical expenses incurred by you and your passengers in an auto accident. They may also cover lost wages in some cases. Personal injury protection is mandated in some states.
Uninsured/underinsured. This covers you if you are hit by someone who has inadequate liability coverage, either because they don't have enough coverage or any coverage at all. The other party must be at fault, however. The insurance company pays for bodily injury losses.
Loss of use. Loss of use coverage reimburses you for the inability to use your vehicle if it is being repaired for an insured loss. An example covered expense is a rental car.
Towing/Roadside assistance. Towing and roadside assistance coverage pay for costs due to road breakdowns.
Personal property. Personal property in a damaged vehicle is typically not covered under the policy; you usually must claim it under your homeowner's or renter's policy. But there are exceptions: some insurance carriers will cover devices that are intended for automobile use, such as navigation devices.
Be sure to keep your insurance card in your vehicle. And if you are in an accident, it is a good idea to not admit fault, as that should be settled later by the experts.
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Keep your vehicle in good condition
Long ago, a car would last about 100,000 miles or so before dying, even when you took good care of it. These days, you can reasonably expect a car to go twice as many miles, but you still have to take good care of it. Why? It reduces the chance of having big repairs, and it ultimately saves money in the long run. Changing the fluids and getting tune-ups on a regular maintenance schedule will ultimately prove less expensive than big repairs.
Should you get an extended warranty?
An extended warranty (also called a service contract) is a prolonged coverage that extends past the life of an original warranty that you had on the auto. It costs extra and offers a certain amount of coverage, such as repairs, labor, or parts. Details of coverage vary greatly according to contract. An extended warranty is offered by the manufacturer, the retailer, or by various warranty sellers. Extended warranties may have exclusions in them and should be understood thoroughly before buying.
But should you get one? On the positive side, an extended warranty can buy you some needed peace of mind, and it can save you a lot of money in repair costs. On the other hand, it can cost a good chunk of money, and you may end up never needing it. These warranties are a big source of profit to those who sell them. Ultimately, you must consider the likelihood of your vehicle needing repairs and whether the repair costs would justify the cost of an extended warranty. The only way you will know for sure that you need one is to see it in hindsight.
Question 1:
Which of the following is true regarding automobile liability insurance?
To protect the public, even someone who steals your car is covered. A spouse not named in the policy is usually not covered. No one not named in the policy is covered.
The insurance covers anyone driving the insured vehicle with the owner's permission.
ANSWER: The insurance covers anyone driving the insured vehicle with the owner's permission. It is not necessary that such a person be named in the policy.
Question 2:
Liability coverage on an automobile insurance policy covers damages that you cause to _______. Yourself
Other people
Both you and other people
ANSWER: Other people. Liability covers others, not you. Other forms of coverage will cover you.
Question 3:
If someone steals a precious ornament from your car, that theft would be covered under _______
coverage. Uninsured motorist
Comprehensive
Collision
ANSWER: Comprehensive. Comprehensive coverage pays for non-collision damages.
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Summary of Vehicle Acquisition
Buying a car or truck involves some of the same steps as buying a home. There's financing to deal with, there's insurance and warranties, and there's the question of whether to buy used or new. There is also the question that more and more young people are asking, which is, "Do I even need a car?"
This tutorial covers some important things you should know before you begin searching for a vehicle. One's means of transport will be one of the biggest single purchases made in life.
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Student Resources
Checking and Savings Account Management
● Manage your account responsibly to avoid fees.
● Good record keeping helps you avoid overdrafts.
● At a minimum, you should review your transactions and check your balance 1-2 times each week using
online or mobile banking. This can help you stay on track with your budget and savings goals and
ensure you don’t spend money you don’t have.
● Deposits and purchases don’t always process immediately, so it’s important for you to keep your own
records rather than relying on a bank statement.
● Use ATMs responsibly. Check with your bank or credit union to find out which ATMs you can use
without being charged a fee.
● If you write a check, record it in your transaction register. Monitor your account regularly to verify it got cashed. Don’t be fooled into thinking you have more money than you really have.
Budgeting
● Track your expenses.
● Be realistic about your budget and compare your actual expenses to your budgeted expenses monthly.
● Differentiate between “Needs” and “Wants” in your budget.
● Include savings as an “expense” in your budget.
● Align your budget with your goals and values.
● Review and recalculate your budget.
Debit Card vs. Credit Card
● A debit card takes your money out of your checking account immediately!
● Always check the balance in your account before using your debit card.
● Tell the bank you DO NOT want to be able to overdraw your account using your debit card if you do
not have enough money to cover the purchase. This is referred to as OPTING – OUT of overdraft
protection.
● A credit card is like taking out a loan. It is temporarily borrowing money that must be repaid. If you
buy something using your credit card, be sure you can pay off the balance in full when you get your
monthly statement.
Credit Score
● Your Credit History and Score MATTERS!
● A credit card is a loan: You MUST pay it back.
● Pay all credit card bills and other bills on time every time.
● Don’t buy things with your credit card that you cannot afford to pay off in a few months.
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Student Resources
Budgeting and Saving This link takes you to a brochure that provides a nice summary and tips for creating and maintaining a budget.
http://www.whatsmyscore.org/downloads/pdf/PMS_Guide_BudgetBasics.pdf
We have provided you with a pdf of a more detailed budget that will help students budget after graduating
from high school. Additionally, we have provided you with a hard copy.
Credit and Loan This link takes you to a brochure that highlights the importance of your credit history. It is a simple summary
review.
http://www.whatsmyscore.org/downloads/pdf/PMS_Guide_CreditHistory.pdf
This link takes you to a brochure that highlights how a credit score is calculated and discusses the importance
of a credit score.
http://www.whatsmyscore.org/downloads/pdf/WMS_brochure.pdf
This link provides you with information related to “Common Mistakes That Can Lower Your Credit Score,”
“Ways to Improve Your Credit Score,” and more.
http://www.whatsmyscore.org/facts/
Education The College Board website offers some great resources for students exploring or pursuing college. The link
below connects them with resources to find colleges, explore careers, pay for college and make a plan (build
profile and gain access to key steps to consider in preparing for college) to fulfill their college dream.
https://bigfuture.collegeboard.org/
Videos – YouCanGo!
This links provides access to short videos highlighting students who overcame barriers to make it to college.
Meet Jonard : http://youcango.collegeboard.org/students/jonard?video=4017
How to Complete FAFSA Power Point:
This link provides you with access to a webinar presentation that discusses what FAFSA is and how to
complete the form. The site also provides multiple resources for completing the FAFSA process.
https://bigfuture.collegeboard.org/pay-for-college/financial-aid-101/how-to-complete-the-fafsa
Financial Aid FAQs:
https://bigfuture.collegeboard.org/pay-for-college/financial-aid-101/financial-aid-faqs
Grants and Scholarships:
This link provides an A-Z look at searching for and applying for grants and scholarships.
https://bigfuture.collegeboard.org/pay-for-college/grants-scholarships
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Student Resources
Additional websites for students getting ready for college:
● FAFSA Application and Financial Aid information: http://studentaid.ed.gov/
● Your school’s financial aid office
Additional College Resources:
● College Board: http://www.collegeboard.org
● US News: http://www.usnews.com/education
● FastWeb Scholarships: http://www.fastweb.com/
● College Confidential: http://www.collegeconfidential.com/
● College Express: http://www.collegexpress.com/
● Peterson’s: http://www.petersons.com/
● The Princeton Review: http://www.princetonreview.com/
Employment This link provides access to three great links related to employment: Tips for Finding a Job , Job Search
Resources , and Paperwork and Taxes . It discusses topics like job listing sites, resume writing, and interviewing.
http://www.whatsmyscore.org/guides/realworld/
Living Independently These links provide tips for renting and living in an apartment. Some of the topics included are selecting a
location, searching for available rentals, leases, inspections, appliances, maintenance, and renter
responsibilities.
http://www.immihelp.com/newcomer/apartment-rental-tips.html
This link focuses on the rights of a renter and the landlord. It provides good guidance for new renters.
http://www.whatsmyscore.org/guides/renting/index.php
Transportation This link provides great tips and guidance for buying a car. It also includes information regarding auto
insurance.
http://www.whatsmyscore.org/guides/car/index.php
Apply for Title and License Plate:
This link takes you to the Wisconsin DMV site and provides step by step instructions to complete the
application for a vehicle’s title and license plate.
http://www.dot.wisconsin.gov/drivers/vehicles/plates/mv1-5.htm
Auto Loan Calculator:
This link provides a fill-in-the-blank calculator to calculate a car loan payment based on the terms of a loan. It can help determine affordability and the kind of down payment a student may need to build.
http://www.practicalmoneyskills.com/calculators/calculate/autoLoanPayment.php?calcCategory=auto 67
Student Resources
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Student Resources
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Student Resources
Job Interview Tips Preparing for your interview If the job you are applying for has a specific job description, review it before your interview and think of
specific examples and experiences that qualify you for the position. If you are applying for a position in retail
or food services, think of experiences where you spent time interacting and communicating with a variety of
people. Be prepared to explain how your specific examples and experiences make you an ideal candidate for
the position.
Draw from school events and volunteer activities if you lack work experience.
Write down answers to common interview questions (see next page). If possible, have someone conduct a
practice interview with you so you feel more comfortable answering these and other questions about yourself.
Being prepared will ensure that you provide your strongest and most relevant response to your interview
questions.
Make a Resume The job you are applying for may or may not require a resume. If you already have created a resume, bring it along to give to your interviewer. If you do not have a resume, it is a good idea to make one – even if you
don't have a lot of work experience – as it gives your interviewer something to reference during the interview.
Dressing for the Interview Your attire is one of the first things your interviewer will notice about you. You want your outfit to convey
your ability to perform the job. Make sure your clothing is clean and your general appearance is tidy and put
together. For men: slacks (no jeans), a button-up shirt, and nice shoes.
For women: slacks (no jeans) or a knee length skirt, a conservative top, and nice shoes. During the interview ● Shake your interviewer's hand, introduce yourself, sit down, and offer your resume.
● Try to relax and be yourself. ● Be confident in your abilities. ● Try to make your responses clear and to the point, and always focus on answering the question the
interviewer asked you. ● Sit up in your chair: Do not lean forward onto the table or slouch back into your seat. ● At the end of the interview, shake the interviewer’s hand again and thank the interviewer for his/her
time. Also restate your interest in working for the company or organization.
That's it. Good luck!
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Student Resources
Mock Interviews Questions
1. Why are you looking for a job?
2. Why are you interested in our company?
3. How has school prepared you for working for us?
4. Why should we hire you?
5. What are your strengths and weaknesses?
6. What do you think it takes to be successful in this position?
7. How would you describe your ability to work as a team member?
8. What has been your most rewarding accomplishment?
9. Have you ever had difficulty with a teacher or supervisor?
How did you handle it?
10. Give me an example of how you have been responsible for something important.
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Student Resources
Buying a Vehicle
1. Preparing to Buy a Vehicle
● What are things you need to take into consideration before purchasing a vehicle? (e.g. having a license, budget, loan, insurance, parking, maintenance, etc.)
● Where can you search for potential vehicles to purchase? (e.g. car dealers, websites like auto trader.com, carsoup.com, and Craig’s list, family or friends, small automotive repair shops)
● What should you know about a vehicle before you purchase it? (e.g. mileage, gas mileage, accidents, ownership history, repairs, current condition of tires and brakes, muffler, body,etc.)
2. Setting a Budget
How will you determine what you can afford to pay for a vehicle? This should be based on how much you have saved and/or what you can afford for a monthly payment based on your income. Additionally, you need to consider expenses for insurance, gas, maintenance, parking, and annual license plate renewal.
3. Choosing a Vehicle ● Review Consumer Reports (website or hardcopy) to get an idea of what used cars have
proven reliable. ● Consider buying from a dealer because the dealer will have likely completed a thorough
inspection of the vehicle, made minor repairs, and cleaned it thoroughly. If you are buying from an individual, consider taking it to a mechanic to have it checked out.
● Test drive the car. Listen for engine noises, test the acceleration, check the brakes, inspect the tires for wear, look at the engine and see if it looks like it has been taken care of, check the electronics, air conditioning, and heat, and make sure the alignment and suspension are good.
● Have the dealer or owner review the vehicle history with you. Dealers should have a complete vehicle history. Look for cars that have been owned by a small number of owners (one owner if possible) and have no history of accidents. Also, if you are not satisfied with what you have learned consider ordering a CARFAX vehicle history. Some dealers and sites like Autotrader.com provide free CARFAX reports. Otherwise, you will need to pay for a report (approximately $40 for one or $50 for five).
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4. Buying the vehicle ● Prepare ahead of time for the purchase of a vehicle by putting a savings plan in place so
you have money available. Also, look for less expensive vehicles for your first vehicle. ● Check the value of the car on a site like Kelly Blue Book. You will need to enter the
make, model, and year. Compare the asking price to the Kelly Blue Book Value. ● Negotiate. Make an offer lower than what the owner is asking and be sure it is
reasonable compared to the Kelly Blue Book value. ● Never Pay Cash. Always write a check or get a cashier’s check from the bank. This
ensures you have a record of your payment. ● Financing is difficult to get on your own without an established credit history. Most
banks will require you to have a co-signor on a loan. Dealers have first time buyer programs available but the interest rate is generally very high (15%). Be clear about the difference in owning a car (paid in full) and taking a loan to purchase a car (car note).
5. Title, License, and Registration
When you purchase or receive a vehicle as a gift, you must immediately apply for a Certificate of Title. The seller must complete the assignment of title, including odometer disclosure (unless exempt) and signature and give you the original document with a lien release for each lien listed on the title. Never buy a vehicle without seeing and receiving a title signed by the previous owner.
To apply in person, you will need the following items: 1. The Certificate of Title (not a photocopy) signed by the previous owner 2. Completed and signed MV1 form (make a copy for your records) Title/License Plate
Application 3. Current identification, if applying in person at a DMV customer service center or to a
DMV agent 4. A license plate to transfer or the annual registration fee if you do not have plates or if
your current plates expire within the next three months (License Plate Fee is $75) 5. Title fee ($69.50) 6. Sales tax (5% of the purchase price) 7. Local sales tax (if applicable) (.60% of the purchase price) 8. Wheel tax (if applicable) ($20 for City of Milwaukee) 9. Check or money order made payable to: Registration Fee Trust
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6. Car Insurance ● Purchase insurance on the vehicle the day you buy the vehicle. ● Wisconsin Insurance Requirements
Liability insurance Minimum liability coverage amounts are as follows: ● $10,000 for property damage ● $25,000 for the injury or death of one person ● $50,000 for the injury or death of more than one person
Proof of insurance Drivers and owners of motor vehicles are required to show proof of insurance at traffic stops/accidents if requested by law enforcement. Proof is not necessary for trailers or semi-trailers. ● Operating a motor vehicle without insurance may result in a fine of up to $500. ● Drivers and owners who fail to show proof of insurance at the time of the
stop/accident may be fined up to $10. ● Offering proof of insurance that is found to be fraudulent may result in a fine of up to
$5,000. ● Get two or three insurance quotes. Ask family and friends for insurance company
recommendations. Talk to the insurance agent about what type of coverage to obtain and what type of deductible to have in place. The deductible is the amount you have to pay before your insurance company pays a claim. The higher the deductible, the lower your insurance premium. Make sure you have the deductible saved in your cash reserve.
7. Maintenance ● Oil changes are very important. Do this based on the recommendation for your car,
usually every 3000 miles. For newer cars it may be every 5000 miles. If you have this done for you, the mechanic should check your air filter as well. If you buy a used car, check the oil every month to make sure your car isn’t burning oil.
● Check tires and brakes. Make sure they aren’t too worn. This can cause safety issues. Also, you should have your tires rotated every year. Be sure to check the air in your tires. Having the proper amount in your tires keeps the car safe and maximizes gas mileage.
● Wash your car occasionally, especially in the winter to get the salt off.
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SecureFutures empowers teenagers with financial literacy educational
resources and real-world lessons. Our engaging volunteers, dynamic
schools and generous supporters share a vision of stronger
communities built by an i vest e t i o ey s art tee s.
SecureFutures
710 N. Plankinton Ave.
Milwaukee, WI 53226
414-273-8101
www.securefutures.org
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