lesson five by cuiliqing

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									lesson five
   living on your own




     teacher’s guide
                                       living on your own                          web sites



               web sites for living on your own

                The Internet is probably the most extensive and dynamic source of information
                in our society. The following Web sites can provide students and others with
                current information, assistance, and data related to this lesson. Web addresses
                ending in “.com” are commercial sites; “.org” are non-profit sites; and “.gov” are
                government sites.



Bankrate.com                           www.bankrate.com

Jump$tart                              www.jumpstart.org/realitycheck

U.S. Dept. of Housing
& Urban Development                    www.hud.gov




Note: Addresses and content of Web sites change, and new sites are created daily. Use search
engines such as Yahoo, Google, AltaVista, Infoseek, Lycos, or Hotbot, to update and locate Web
sites related to this topic.




  www.practicalmoneyskills.com living on your own                                teacher’s guide
living on your own                           lesson outline


lesson 5 overview

“I can’t wait to leave home and be on my own!”
Most teenagers are eager to experience the freedom of living on their own. Few teenagers have any
idea of the costs and responsibilities of such a move. This lesson provides a “reality check” for
students as they examine the costs of moving, setting up, and maintaining a household.
Lesson 5 begins with an investigation of the costs of buying furniture and appliances for a two-
bedroom apartment. Next, students consider the costs of a move and additional moving-in expenses
associated with renting an apartment. A sample lease form for an apartment rental is included to
familiarize students with the format and elements of a legal contract. This material can help
students develop an awareness of and caution about leases (or other contracts) before they sign
them.
This lesson concludes with a review of the budgeting process. It encourages students to carefully
consider various fixed and flexible expenses to help them determine how much they can afford to
pay for rent. It also outlines the monthly costs for living in an apartment.
Suggested teaching strategies, teaching notes, activities, overheads, and short quizzes are linked to
student objectives. Additional ideas to help students practice and generalize skills learned in “Living
on Your Own” to real life situations are included at the end of the lesson.

lesson 5 student performance goal:
I   The student will increase his/her awareness of the costs and responsibilities of living
    independently.

lesson 5 objectives: The student will…

5-1    estimate expenses associated with moving and setting up a household.
5-2    identify responsibilities of a tenant and a landlord.
5-3    set up a budget for maintaining a household that includes rent, utilities, and living expenses.




      www.practicalmoneyskills.com living on your own                               teacher’s guide
                            living on your own                    teaching notes


5-1 The student will estimate expenses associated
with moving and setting up a household.


how much does it cost to set up and furnish
a two-bedroom apartment?

1. bedroom furnishings
    I   As a homework assignment, have students list all
        the furnishings in their bedroom. With their
        parent’s help, have students estimate the total
        cost (worth) of the furniture, rugs, linens, and         student activity 5-1a:
        creature comforts. (activity 5-1a)                       estimate the cost of
    I   Discuss their findings. Were they surprised by               your bedroom
        the total cost?                                               furnishings

2. other household furnishings
    I    Ask each team to choose a room in an
         apartment. Choices include kitchen, dining
         room, bedroom, living room, and bathroom.             discussion
    I    Ask each team to research how much it would
         cost to furnish and equip that room. Have
         students obtain information on the typical costs
         of these items by using furniture and housewares
         store advertisements and the Internet. Encourage
         students to look at various alternatives, including
         secondhand stores, garage sales, donations from
                                                                  internet
         relatives, etc.
    I    Have teams prepare a summary of their findings,
         including an itemized list of what they would
         buy, the estimated cost of each item, the source
         for each item, and the total cost of furnishing
         and equipping their room. Have all teams
         present their findings to the class.
    I    Discuss students’ findings, and as a class,
         brainstorm ways to cut costs.


how much does it cost to move in?
   I  Before beginning their research, ask students to
      guess how much they think it might cost to
      move into an apartment. Have each student
      write down an estimated figure.
   I
                                                                    overhead 5-1a:
      Have students use the phone book, Yellow Pages,
                                                                  the costs of moving
      or Internet to find moving companies and truck
      rental companies. Get estimates for renting a


www.practicalmoneyskills.com living on your own                    teacher’s guide 5-1
                           living on your own                   teaching notes


          truck or hiring movers. Write down the figures.
          (overhead 5-1a)
     I    Using community-based rental ads, such as
          Apartment Finders, have students collect figures
          on average rents and moving-in costs for their
                                                                  overhead 5-1b:
          area. Using the overhead, write the costs down
                                                                  moving-in costs
          and add them. (overhead 5-1b)
     I    Use the information that students gathered on
          the costs of individual room furnishings. Write
          down and add those figures. (overhead 5-1c)
     I    Finally, add the figures from the previous totals
          to determine how much it will cost students to
          move into an apartment. (overhead 5-1d)                 overhead 5-1c:
          Compare the figure arrived at as a group with       the cost of furnishing...
          the students’ initial, individual estimates. Are
          they surprised? Which student’s estimate was
          closest?



how much does it cost to set up and move
into a two-bedroom apartment?
ways to cut costs:
     I    Used equipment and furniture                            overhead 5-1d:
     I    Secondhand stores                                   how much does it cost...
     I    Donations from relatives
     I    Used items advertised in local newspaper
add it all together:
1. moving costs
    I     Renting a truck
    I     Hiring movers
2. moving-in costs may include:
    I     Rent for first month
    I     Rent for last month
    I     Cleaning deposit
    I     Security deposit
    I     Utilities deposit
    I     Telephone deposit
3. cost of furnishing and equipping an apartment:
    I     Bedroom #1
    I     Bedroom #2
    I     Living room
    I     Dining room


www.practicalmoneyskills.com living on your own                   teacher’s guide 5-1
                        living on your own        teaching notes


    I     Kitchen
    I     Bathroom
    I     Other
4. total cost




www.practicalmoneyskills.com living on your own   teacher’s guide 5-1
                                               the costs of moving

Moving costs can include:

Renting a truck                                       $ ___________


Hiring movers                                         $ ___________



Total #1                                              $ ___________




  www.practicalmoneyskills.com living on your own         overhead 5-1a
                                                    moving-in costs

Rent for first month                                 $ ____________


Rent for last month                                  $ ____________


Cleaning Deposit                                     $ ____________


Security Deposit                                     $ ____________


Utilities Deposit                                    $ ____________


Telephone Deposit                                    $ ____________



Total #2                                             $ ___________




  www.practicalmoneyskills.com living on your own          overhead 5-1b
               the cost of furnishing an apartment

Bedroom #1                                          $______________


Bedroom #2                                          $______________


Living room                                         $______________


Dining room                                         $______________


Kitchen                                             $______________


Bathroom                                            $______________


Other                                               $_____________



Total # 3                                           $ ___________




  www.practicalmoneyskills.com living on your own         overhead 5-1c
                                     how much does it cost...

How much does it cost to set up and move into a two-bed-
room apartment?

                            ADD TOGETHER:



                      The Costs of Moving (Total #1)
                     ___________________________
                                         +


                         Moving-In Costs (Total #2)
                     ___________________________
                                         +


                    The Cost of Furnishings (Total #3)
                     ___________________________



      AND YOU HAVEN’T EVEN BOUGHT FOOD YET!!




  www.practicalmoneyskills.com living on your own        overhead 5-1d
name:____________________________________________________________   date: ______________________




            estimate the cost of your bedroom furnishings


           Directions:
           Use the chart below and estimate the cost of every item in your bedroom. Be sure to
           include all furniture, linens, and creature comforts. Add the prices of every item
together for a total cost.



   Bed and furniture (dresser, nightstand, desk, shelves, etc.)         $


   Mattress                                                             $


   Linens (pillow, sheets, blankets, mattress pad, etc.)                $


   Rugs, floor coverings, window treatments                             $


   Electronics (radio, computer, CD player, etc.)                       $


   Lamps, decorative items                                              $


                                                                        $


                                                                        $


                                                                        $


   TOTAL                                                                $




The total cost of all my bedroom furnishings is $___________________.




www.practicalmoneyskills.com living on your own                                activity 5-1a
name:____________________________________________________________   date: ______________________




             how much does it cost to furnish an apartment?


         Directions
         Each team chooses one room:
     I    kitchen
     I    dining room
     I    living room
     I    bathroom

Research how much it would cost to furnish and equip the room. Can you get furniture from
secondhand stores, garage sales, or donations from relatives?


          Room Item                            Source                      Cost




          TOTAL


Room ______________________________________________


Total Cost __________________________________________




www.practicalmoneyskills.com living on your own                                activity 5-1b
                            living on your own                       teaching notes


 5-2 The student will identify responsibilities of a
tenant and a landlord.


what are your responsibilities as a tenant?

     I   Define the terms that students would be likely to
         find in a lease or rental agreement (overhead 5-2a).
     I   Read and discuss a lease (overhead 5-2b) to
         familiarize students with the style of language
         used in legal documents. As a group activity, help             overhead 5-2a:
         students understand the major points of the             legal terms you should know
         contract by answering questions together using a
         printed copy of the lease (activity 5-2b).
     I   Define “negligent conduct.” Explain that a
         landlord is liable when a tenant or visitor is
         injured on his rental property due to his
         carelessness. It is important for tenants to have a
         clear understanding regarding which areas of the
                                                                       overhead 5-2b:
         rental property the landlord is responsible for
                                                                 a lease agreement (2 pgs.)
         maintaining. For example, if the landlord is
         responsible for maintaining all outdoor walkways,
         his negligence in clearing ice and snow could
         cause a serious fall. Have students cite other
         examples of negligent conduct, such as failing to
         repair a broken step, faulty hinges on doors, or
         leaks in the roof that leave puddles in hallways.
     I   Discuss responsibilities of a tenant (overhead 5-2c).      student activity 5-2b:
     I   Stress that tenants must keep their living                a letter to the landlord
         quarters clean and sanitary. As a class, list regular
         housekeeping duties necessary to maintain an
         apartment: scrubbing showers and bathroom
         fixtures, wiping kitchen appliances, vacuuming
         floors, dusting furniture, removing trash. Remind
         students that they should thoroughly clean an
         apartment before moving out.
                                                                       overhead 5-2c:
     I   Discuss potential situations that could make it           your responsibilities as
         difficult for tenants to fulfill their rental                    a tenant
         agreements (ex. change in employment, illness,
         roommate troubles, etc.). Tell students they must
         notify the landlord immediately if there is a
         problem. A tenant should always put any
         complaint, agreement, or notice in writing to
         avoid misunderstandings or disputes. Discuss a
         sample notification letter (overhead 5-2d). How
         do students think a landlord would likely                    overhead 5-2d:
         respond to a letter of this sort?                        sample notification letter


www.practicalmoneyskills.com living on your own                       teacher’s guide 5-2
                            living on your own                       teaching notes


     I    Have students practice writing letters to a
          landlord about a problem situation. Stress to
          students that letters should be neatly written or
          typed and facts should be presented in a concise
          and courteous manner. Keep the sample letter on
          the overhead to aid students in formatting their
          letters on the lined sheet (activity 5-2b). Have         discussion
          students read their completed letters aloud and
          discuss them as a group.
     I    Discuss responsibilities of a landlord (overhead
          5-2e).
     I    Stress to students that rental problems are best
          avoided by understanding the terms of the lease
          and by keeping lines of communication open.
          Advise students to keep copies of all agreements
          and ask for repairs in writing. If talking to the            overhead 5-2e:
          landlord doesn’t resolve a problem, tenants can              your landlord’s
          call their city manager’s office to ask about a              responsibilities
          local dispute resolution service that handles
          landlord-tenant mediation matters. In the event
          of an injury caused by a landlord’s negligence, a
          tenant can file a personal injury lawsuit or sue for
          property damage.


lease
What a lease looks like and what it usually contains:
     I    Length of lease
     I    Amount of rent per month
     I    Date rent must be paid                                       overhead 5-2b:
     I    Names of tenant and landlord                           a lease agreement (2 pgs.)
     I    Address where rent is to be sent


terms you should know
   I   Tenant – one who pays money to live in a
       building (renter)
   I   Landlord – the owner of a property or building
   I   Lease – a rental agreement between a tenant and
                                                                        overhead 5-2a:
       a landlord
                                                                 legal terms you should know
   I   Term – the length of time of the lease
   I   Rent – money paid to the landlord by the tenant
   I   Premises – the grounds and apartment building
   I   Default – to fail to fulfill an agreement
   I   Negligent conduct – an act of carelessness



www.practicalmoneyskills.com living on your own                       teacher’s guide 5-2
                        living on your own         teaching notes


lesson 5 quiz: leases and landlords



                                                  quiz 5-2 | quiz key 5-2




www.practicalmoneyskills.com living on your own     teacher’s guide 5-2
                                legal terms you should know

I      Tenant



I      Landlord



I      Lease



I      Term



I      Rent



I      Premises



I      Default



I      Negligent conduct




    www.practicalmoneyskills.com living on your own   overhead 5-2a
                                                    a lease agreement

1. Parties/Premises:
This Lease is made this 27th of August, 2004, by and between Alice
Chan (herein referred to as “Landlord”) and Don Baker (herein
referred to as “Tenant”). Landlord hereby leases to Tenant certain real
property situated in the City of San Francisco, State of California,
commonly known as 123 Main Street and described as Two Bedroom
Apartment (hereinafter called the “Premises”).



2. Term:
The term of this Lease shall be for one year commencing on
September 1, 2004, and ending on August 31, 2005.



3. Rent:
Tenant shall pay to Landlord as rent for the Premises the sum of
$850.00 dollars per month, on the first day of each month. Rent shall
be payable without notice or demand at the address as the Landlord
may designate to Tenant in writing.



4. Utilities:
Tenant shall make all arrangements and pay for all gas, heat, light,
power, telephone, and other utility services supplied to the Premises and
for all connection charges.




  www.practicalmoneyskills.com living on your own            overhead 5-2b
                                                    a lease agreement

5. Hold Harmless:
Tenant shall hold Landlord harmless from and against any and all
claims arising from Tenant’s use or occupancy of the Premises. Except
for Landlord’s willful or grossly negligent conduct, Tenant hereby
assumes all risk of damage to property or injury to persons in or about
the Premises.



6. Default:
If Tenant shall default and breach any covenant or provision of the
Lease, then the Landlord, after giving the proper notice required by
law, may re-enter the Premises and remove any property and any and all
persons therefrom.



7. Holding Over:
If Tenant, with the Landlord’s consent, remains in possession of the
Premises after expiration of this Lease, such possession shall be a
tenancy from month-to-month at a rental in the amount of the last
month’s rent. Tenant must notify Landlord in writing at least thirty
days prior to evacuating the Premises. All other provisions remain the
same.

Landlord by:                                 Tenant by:
Alice Chan                                   Don Baker


__________________________                   __________________________
signature                                    signature



  www.practicalmoneyskills.com living on your own         overhead 5-2b, cont.
                         your responsibilities as a tenant

I      Pay your rent on time.


I      Take good care of the property.


I      Tell the landlord if repairs are needed.


I      Tell the landlord if you plan to leave at the end of the lease.


I      Tell the landlord if you plan to leave before your lease is up.
       (If your landlord can’t find new tenants, you may be required
       to keep paying rent until your lease is up.)


I      Pay for any damage to the walls, floors or furniture.


I      Don’t make changes that the landlord must fix later.


I      Be prepared to pay all the rent if your roommates move out.


I      Fulfill all terms of the lease agreement.




    www.practicalmoneyskills.com living on your own            overhead 5-2c
                                     sample notification letter

John Scott
1015 Stone Hill Road, Apt. B
Boone, NC XXXXX

November 28, 2004

Mr. Henry Moss
1011 Stone Hill Road
Boone, NC XXXXX

Dear Mr. Moss:

I’ve been a tenant in one of your apartments for the past nine months. I
was suddenly laid off from my construction job yesterday. Without my
regular income, I’m unable to pay monthly rent. My lease ends in three
months.

Please accept this 30-day notice for me to move out of the Stone Hill
Apartments at the end of December. I will keep the apartment neat and
ready for you to show new tenants.

Please answer this letter in writing so I know you received it.

I’ve really enjoyed living here and apologize for any inconvenience to
you.

Sincerely,
John Scott




  www.practicalmoneyskills.com living on your own           overhead 5-2d
                             your landlord’s responsibilities

I      Make repairs in a reasonable amount of time.



I      Keep the premises safe and sanitary.



I      Enter the apartment only at agreed-upon times.



I      Collect rent.



I      Fulfill all terms of the lease agreement.




    www.practicalmoneyskills.com living on your own     overhead 5-2e
name:____________________________________________________________       date: ______________________




                                                 would you sign this lease?

           Directions
           Use the attached lease form to answer the following questions.


1. Does the landlord pay any of the utilities?




2. You fall down a wet flight of stairs in the apartment building and break your leg. Is the
landlord legally responsible for your medical bills?




3. You are not following the terms of your lease. What does this agreement permit the landlord
to do?




4. What happens if you want to stay after the lease has ended?




5. You want to let the landlord know you are moving out.
  What should you do?




www.practicalmoneyskills.com living on your own                                    activity 5-2a
name:____________________________________________________________        date: ______________________




                                                would you sign this lease?

1. Parties/Premises:
This Lease is made this 27th of August, 2004, by and between Alice Chan (herein referred to as
“Landlord”) and Don Baker (herein referred to as “Tenant”). Landlord hereby leases to Tenant
certain real property situated in the City of San Francisco, State of California, commonly known
as 123 Main Street and described as Two Bedroom Apartment (hereinafter called the
“Premises”).

2. Term:
The term of this Lease shall be for one year commencing on September 1, 2004, and ending on
August 31, 2005.

3. Rent:
Tenant shall pay to Landlord as rent for the Premises the sum of $850.00 dollars per month, on
the first day of each month. Rent shall be payable without notice or demand at the address as
the Landlord may designate to Tenant in writing.

4. Utilities:
Tenant shall make all arrangements and pay for all gas, heat, light, power, telephone, and other
utility services supplied to the Premises and for all connection charges.

5. Hold Harmless:
Tenant shall hold Landlord harmless from any and all claims arising from Tenant’s use of the
Premises. Except for Landlord’s willful or grossly negligent conduct, Tenant assumes all risk of
damage to property or injury to persons in or about the Premises.

6. Default:
If Tenant shall default and breach any covenant or provision of the Lease, then the Landlord,
after giving the proper notice required by law, may re-enter the Premises and remove any
property and any and all persons therefrom. The undersigned Resident(s) whether or not in
actual possession of the premises, are jointly and severally liable for all obligations under this
rental agreement.

7. Holding Over:
If Tenant, with the Landlord’s consent, remains in possession of the Premises after expiration of
this Lease, such possession shall be a tenancy from month-to-month at a rental in the amount
of the last month’s rent. Tenant must notify Landlord in writing at least thirty days prior to
evacuating the Premises. All other provisions remain the same.

Landlord By:                                    Tenant By:
Alice Chan                                      Don Baker
__________________________                      ___________________________
signature                                       signature




www.practicalmoneyskills.com living on your own                            activity 5-2a, cont.
name:____________________________________________________________                date: ______________________




                                                    would you sign this lease?

            Directions
            Use the attached lease form to answer the following questions.


1. Does the landlord pay any of the utilities?
    According to the lease, the landlord doesn’t pay for any of the utilities.




2. You fall down a wet flight of stairs in the apartment building and break your leg. Is the
landlord legally responsible for your medical bills?
    Only if you could prove the landlord was “willfully and grossly” careless.




3. You are not following the terms of your lease. What does this agreement permit the landlord
to do?
    “The landlord, after giving proper notice required by law, may enter the Premises and remove any
    property and any persons...”




4. What happens if you want to stay after the lease has ended?
    With prior permission from the owner, the tenancy becomes month-to-month at the cost of the last
    month’s rent. All other terms and conditions remain the same.




5. You want to let the landlord know you are moving out. What should you do?
    Notify the landlord, in writing, at least 30 days before you plan to move out.




www.practicalmoneyskills.com living on your own                                       activity key 5-2a
name:____________________________________________________________       date: ______________________




                                                      a letter to the landlord

           Directions:


1. Choose one of the three scenarios below. You are the tenant. Write a letter to your landlord
giving notice that you’re moving out. Remember to be courteous and concise.
2. Write your letter on the next page. For the greeting, use your landlord’s proper title (Mr. or
Ms.). Select a “complimentary close” from the suggestions below to end your letter.

Scenario A:________________________________________________________________

     Tenant: Pat O’Connor                       Landlord: Yolanda Jones
     123 Shamrock Lane                          59 Country Court
     San Diego, CA XXXXX                        San Diego, CA XXXXX

Pat’s apartment lease is up at the end of the month. Pat can’t afford to pay the full rent amount.
Pat’s roommate moves out when the two of them have a fight. Pat needs to notify their landlord
immediately.

Scenario B:_________________________________________________________________

     Tenant: Chris Black                        Landlord: Harry Warren
     44 Windsor Ave.                            608 Sycamore Rd.
     Buffalo, NY XXXXX                          Buffalo, NY XXXXX

Chris has been living alone in an apartment for a full year. Chris’ parents really want Chris to
move back home. They have convinced Chris to live at home and attend a community college.
Chris’ lease is up at the end of the month. It’s time for Chris to notify the landlord.

Scenario C:_________________________________________________________________

     Tenant: Taylor Morgan                      Landlord: Frank De Carlo
     1001 Lakeshore Blvd.                       1000 Lakeshore Blvd.
     Erie, PA XXXXX                             Erie, PA XXXXX

An out-of-town company just offered Taylor an exciting, high paying job, 100 miles away.
Taylor has three months left on an apartment lease here. This is too good an opportunity to pass
up! Taylor is sure the landlord will understand.


Complimentary Closes:           Cordially,                      Cordially yours,
                                Respectfully,                   Respectfully yours,
                                Sincerely,                      Sincerely yours,




www.practicalmoneyskills.com living on your own                                    activity 5-2b
name:____________________________________________________________   date: ______________________




                                                    a letter to the landlord

 __________________________
 __________________________
 __________________________


 __________________________


 __________________________
 __________________________
 __________________________


 _____________________ :


________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________


 _____________________ ,


 __________________________


www.practicalmoneyskills.com living on your own                       activity 5-2b, cont.
name__________________________________________________________date___________________________________




                         lesson 5 quiz: leases and landlords

choose the correct answer.

1. ____ The agreement between a tenant and a landlord is a:
        a. security deposit.
        b. rental unit.
        c. lease.
        d. deed.

2. ____ A    lease is designed to protect the rights of both a tenant and:
        a.   a renter.
        b.   a landlord.
        c.   a roommate.
        d.   the premises.

3. ____ The length of time that a lease is in effect is the:
        a. term.
        b. rent.
        c. default.
        d. premises.

4. ____ Your landlord doesn’t shovel the snow and ice off the steps to your apartment. He is
        showing:
        a. his rights as a landlord.
        b. negligent conduct.
        c. that he expects you to shovel.
        d. that he takes good care of the premises.

5. ____ You are renting an apartment. The faucet in your shower leaks. Who is responsible for
        fixing it?
        a. you are, because you signed a lease
        b. your roommate
        c. your landlord
        d. both you and your landlord




www.practicalmoneyskills.com living on your own                                          quiz 5-2
name__________________________________________________________date___________________________________




                         lesson 5 quiz: leases and landlords

choose the correct answer.

1. ____ The agreement between a tenant and a landlord is a:
        a. security deposit.
        b. rental unit.
        c. lease. *
        d. deed.

2. ____ A    lease is designed to protect the rights of both a tenant and:
        a.   a renter.
        b.   a landlord. *
        c.   a roommate.
        d.   the premises.

3. ____ The length of time that a lease is in effect is the:
        a. term. *
        b. rent.
        c. default.
        d. premises.

4. ____ Your landlord doesn’t shovel the snow and ice off the steps to your apartment. He is
        showing:
        a. his rights as a landlord.
        b. negligent conduct. *
        c. that he expects you to shovel.
        d. that he takes good care of the premises.

5. ____ You are renting an apartment. The faucet in your shower leaks. Who is responsible for
        fixing it?
        a. you are, because you signed a lease
        b. your roommate
        c. your landlord *
        d. both you and your landlord




www.practicalmoneyskills.com living on your own                                     quiz key 5-2
                           living on your own                   teaching notes


 5-3 The student will set up a budget for maintaining
a household that includes rent, utilities, and living
expenses.


the costs of living on your own
    I  Divide students into teams of two or three
       people. The students in these teams are now
       “roommates.”
    I  Assign a realistic income to each student and
       give each team a budget sheet.
    I  Using the blank budget sheet, have each student
       set up a budget that includes the fixed and             student activity 5-3a:
       flexible expenses associated with leaving home            budgeting to live
       and living on one’s own (Activity 5-3a).                    on your own
    I  Stress to students the importance of putting
       money aside to cover the cost of utilities. Discuss
       the serious consequences of paying for utility
       bills late or missing payments, such as late fees or
       having services disconnected, with severe fines to
       re-establish services.
    I  Have students use figures they developed for           discussion
       objective 5-1 to complete items related to
       moving and furnishing costs.
    I  As a class, discuss the budgets prepared by each
       team. How much money would the team need to
       move? How long would it take them to save the
       money? What types of flexible expenses did they
       include in their budget? Given their income and
       their personal lifestyle preferences, how long
       could they stay within their budget? How many
       students included savings in their budgets?
       Remind students that should be saving 10% of
       their incomes.


preparing a budget
1. Income (assign)
    I    Current
    I    Expected income in the next few months                   overhead 5-3a:
    I    Expected income in the next year                       preparing a budget
2. Typical fixed monthly expenses (a review)
    I    Rent
    I    Car payment
    I    Car insurance



www.practicalmoneyskills.com living on your own                  teacher’s guide 5-3
                             living on your own            teaching notes


     I    Credit card payments

3. Typical flexible monthly expenses (a review)
    I    Food
    I    Utilities
    I    Transportation (gas, oil, bus fare, etc.)
    I    Clothing
    I    Entertainment
    I    Personal items
    I    Gifts
4. Moving-in costs (from objective 5-1)
5. Moving costs (from objective 5-1)
6. Cost of furnishing an apartment (from objective 5-1)


lesson 5 quiz: vocabulary



                                                          quiz 5-3 | quiz key 5-3




www.practicalmoneyskills.com living on your own             teacher’s guide 5-3
                                                  preparing a budget

When preparing your budget, keep in mind:

I      Income


I      Lifestyle


I      Fixed expenses


I      Flexible expenses


I      Moving costs


I      Moving-in costs


I      The cost of furnishings



Rules of thumb:

I      You should spend no more than 40% of your net income on rent
       payments.

I      You should save 10% of your net income.


    www.practicalmoneyskills.com living on your own         overhead 5-3a
                                           budgeting to live on your own

Income
  Job #1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Job #2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
Total Monthly Income . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________


Fixed Expenses
  Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Car payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________


Flexible Expenses
  Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Food . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Bus fare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Gas and oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Parking and tolls . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Household items . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Personal items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Tuition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  School expenses         . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
Total Monthly Expenses . . . . . . . . . . . . . . . . . . . . . . . $ ______________________


Moving Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
Moving-In Costs           . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
Cost of Furnishing an Apartment . . . . . . . . . . . . . . . . $ ______________________
             Total Cost to Move. . . . . . . . . . . . . . . . . . . . $ ______________________


    www.practicalmoneyskills.com living on your own                                                    overhead 5-3b
name:____________________________________________________________                                date: ______________________




                                                           budgeting to live on your own

           Directions:
           Use this form to set up a budget that would let you and your roommates rent an
           apartment. Add your total monthly expenses to your total cost to move. That number
should be less than or equal to your total income.
Income
  Job #1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $    ______________________
  Job #2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $      ______________________
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $     ______________________
Total Monthly Income . . . . . . . . . . . . . . . . . . . . . . . . . . $              ______________________

Fixed Expenses
  Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________
  Car payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______________________

Flexible Expenses
  Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $       ______________________
  Food . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $    ______________________
  Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $    ______________________
 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $           ______________________
  Bus fare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $      ______________________
  Gas and oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $         ______________________
  Parking and tolls . . . . . . . . . . . . . . . . . . . . . . . . . . . . $           ______________________
  Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $       ______________________
  Medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . $            ______________________
  Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $        ______________________
  Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $           ______________________
  Household items . . . . . . . . . . . . . . . . . . . . . . . . . . . . $             ______________________
  Personal items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $          ______________________
 Tuition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $      ______________________
  School expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . $               ______________________
  Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $   ______________________
Total Monthly Expenses . . . . . . . . . . . . . . . . . . . . . . . $                  ______________________

Moving Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $      ______________________
Moving-In Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $             ______________________
Cost of Furnishing an Apartment . . . . . . . . . . . . . . . . $                       ______________________
          Total Cost to Move. . . . . . . . . . . . . . . . . . . . $                   ______________________


www.practicalmoneyskills.com living on your own                                                             activity 5-3a
name__________________________________________________________date___________________________________




                                            lesson 5 quiz: vocabulary

choose the correct answer.

1. ____ Rent payment is commonly considered a:
        a. moving-in cost.
        b. cost that doesn’t need to be budgeted for.
        c. flexible living expense.
        d. fixed living expense.

2. ____ When you rent an apartment, a common flexible expense is:
        a. a security deposit.
        b. apartment insurance.
        c. electricity.
        d. rent.

3. ____ An example of a moving-in cost is:
        a. a security deposit.
        b. the cost of furnishings.
        c. an electric bill.
        d. car insurance.

4. ____ Which of these is not an expense?
        a. moving costs
        b. furnishings
        c. savings
        d. budget

5. ____ The money a landlord holds to cover possible damage in an apartment is called a:
        a. cleaning deposit.
        b. security deposit.
        c. telephone deposit.
        d. utilities deposit.




www.practicalmoneyskills.com living on your own                                          quiz 5-3
name__________________________________________________________date___________________________________




                                            lesson 5 quiz: vocabulary

choose the correct answer.

1. ____ Rent payment is commonly considered a:
        a. moving-in cost.
        b. cost that doesn’t need to be budgeted for.
        c. flexible living expense.
        d. fixed living expense. *

2. ____ When you rent an apartment, a common flexible expense is:
        a. a security deposit.
        b. apartment insurance.
        c. electricity. *
        d. rent.

3. ____ An example of a moving-in cost is:
        a. a security deposit. *
        b. the cost of furnishings.
        c. an electric bill.
        d. car insurance.

4. ____ Which of these is not an expense?
        a. moving costs
        b. furnishings
        c. savings
        d. budget *

5. ____ The money a landlord holds to cover possible damage in an apartment is called a:
        a. cleaning deposit.
        b. security deposit. *
        c. telephone deposit.
        d. utilities deposit.




www.practicalmoneyskills.com living on your own                                     quiz key 5-3
living on your own                         lesson outline


additional activities for practice and generalization
of concepts related to living on your own

I    As a class or individually, have students put together an “Apartment Furnishings” scrapbook.
     Ask students to browse furniture ads and catalogues and clip selected pictures to design and
     decorate a specific room on each page. Ask them to note the price of each item on the page
     with a total cost for the “room” listed at the bottom of the page. The finished scrapbook should
     resemble a furniture showroom of various decorating styles. Encourage students to be creative
     – price is no object for this activity!
I    Have students interview family and friends about their experiences with renting an apartment.
     Students can ask questions and take notes on subjects such as: how much it costs to rent an
     apartment; how costs are divided among roommates; the pros and cons of having roommates;
     what it costs to furnish an apartment; tips about maintaining a budget. Compile their findings
     into a “Renter’s Handbook.”
I    Have students check newspaper or Internet listings for nearby apartment rentals. Take a field
     trip to visit some selected apartment buildings. Have students make observations and take
     notes. They can compare rental units based on: financial aspects, location, building exterior,
     building interior, apartment layout and facilities. (see activity sheet on following page)
I    Take a field trip to a local utility company or invite a representative to come speak to your
     class. Have a representative talk about the procedures used to connect utilities, utility rates, and
     additional fees associated with installation.
I    Obtain a variety of sample leases for apartment rentals. Compare the documents and help
     students locate pertinent information in each.




    www.practicalmoneyskills.com living on your own                                 teacher’s guide
name:____________________________________________________________         date: ______________________




                                  field trip: selecting an apartment

Compare two or three different rental units based on the following factors:

location
Place of employment, schools, churches, synagogues, shopping, public transportation,
recreation…




building exterior
Condition of building, grounds, parking availability, recreation facilities…




building interior
Exits, security, hall maintenance, condition of elevators, access to mailboxes…




apartment layout and facilities
Condition, size, closets, carpeting, appliances, type of heat, air conditioning, plumbing, water
pressure, storage area, room size, doors, locks, windows…




financial aspects
Rent amount, length of lease, security deposit, utilities, other costs…




www.practicalmoneyskills.com living on your own                                 field trip activity

								
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