Where should I live?

There comes a time in everyone's life when they decide to move out of their parent's home and get a place of their own.  Some people move into apartments in the city, while others rent a home in the country.  Then there are the few that actually purchase their own home.  Any way you look at this time in your life is a scary experience and one that takes research, understanding and organization.  In this assignment, you will be researching several different options of renting a home or apartment:

1. Renting an apartment in a large city
2. Renting an apartment in a small city
3. Renting a house in a large city
4. Renting a house in a small city

It is your job to research real estate online and find (a) low range [cheapest you can find] and (b) mid range [the most you could afford with a good job at your age] rentals for each of the four options above.  Using Microsoft Word you will create a fact sheet on each of the above options listing:

• The location of the apartment/home
• A description of the property
• The price
• A photo and/or floor plan
• The Realtor
• Any applicable fees/dues associated with the property such as Association Fees or asking fees on the property.
• Are utilities included?
• What amenities are provided (i.e. swimming pool, laundry, clubhouse, etc.)
• Estimate the monthly rent based on the found information.

We will be working on these today and tomorrow.

Continue Banking Simulation

Today we're going to finish month two of our virtual checking accounts.  Follow the correct procedure for each of the following transactions, including writing checks (if applicable), writing items in the Transaction Register, etc.

• 3/22 - You have a garage sale to save up additional money to cover your upcoming summer college class.  You manage to collect the following amounts which you will put on your Deposit Slip:
  + 37 quarters
  + 18 dimes
  + 12 nickels
  + 55 pennies
  + 6  $20 bills
  + 4  $10 bills
  + 7  $5 bills
  + 41  $1 bills
  + Check #1824 for $20.00
  + Check #154 for $16.50
  + Check #913 for $100.00
  + Check #8213 for $125.50
• 3/23 - You receive an Income Tax check for last years taxes.  The check (#52280226) is for $473.29.  Fill out a Deposit Slip for this check and indicate that you would like $100 cash back which you will use to go out with some friends.  Make sure to put this in your Check Register.
• 3/24 - You stop by Games R' Us to buy a new video game.  Write a check for $80.29.
• 3/25 - You decide you need a new hat.  Use your debit card to buy your hat from Wig Out for $22.95.
• 3/25 - You need a new shirt to match your cool new hat.  Write a check for $24.17 at Cold Topic.
• 3/25 - You buy a belt, socks, and underwear at American Dog.  Write a check for $33.91. 
• 3/26 - You and your friends go to dinner and the movies.  You use your cash to pay $11.12 at McTaco King.  You also use your cash to pay $8 to get in to the movies and $8 for popcorn at Stadium 6 Theater.
• 3/27 - You want to go clubbing this weekend so you need to fill up your car with gas.  Spend $42.11 on gas at Tweakin' Beacon on your debit card.
• 3/28 - You drive to Sacramento and pay the $10 cover charge at Yo'Mamaz with cash.  You use your debit card to buy soda's amounting to $24.  They also charged $2 to use your debit card.
• 3/29 - Your friend is arrested for being in a bar fight.  Write a check for $250 to bail them out.  Make the check payable to The Sacramento Police.
• 3/30 - You're really tired the next morning and decide you need some coffee.  Stop by MoonBucks and use your debit card for $11.54.

When you have finished, compare your last amount with your neighbor and try to figure out who's wrong.  :)

Begin Checking

Today we're going to begin working on our virtual checking accounts.  Get your envelopes out and get ready to begin your first months transactions.

Follow the correct procedure for each of the following transactions, including writing checks (if applicable), writing items in the Transaction Register, etc.

• 2/01 - You take a trip to Curl Up & Dye -- a little beauty parlor and barber shop in downtown Kelseyville.  The cost to do your hair (including tax and tip) was $32.  Write a check.
• 2/01 - You receive your first paycheck from Griffith Enterprises which you deposit into your checking account.  Complete a deposit slip and enter the amount in your Register.
• 2/02 - You decide that you need a new pair of shoes for all of the standing and walking you will be doing.  You drop by G-Mart and find a nice pair of shoes.  Rather than write a check you decide to use your Debit Card for the $52.79 total.
• 2/03 - You go to lunch with a few of your colleagues at McTaco King.  Use your Debit Card to pay the $6.42 total.
• 2/04 - Rent is due on the 1st of the month, but it's not late until the 5th.  Write a check for $600 to cover February rent, payable to Shady Acres Apartments.
• 2/06 - The cupboards are looking a little bare and you have a friend coming over for dinner.  You go to the grocery store to stock up on some necessities.  Write a check for $184.69 to Purity Market.
• 2/07 - You receive your Netmoviez bill in the mail.  Write a check for $10.14 to cover it.
• 2/11 - You receive your cell phone bill in the mail.  Although money is running a little low, write a check for $34.71 to American Cellular.
• 2/15 - Thankfully you receive your paycheck today.  Complete a deposit slip and log it in your Register.
• 2/17 - Your electric bill came in.  Write a check for $74.61 to Kelseyville Electric Company.
• 2/19 - You're in need of some more groceries.  You drop by Purity Market and spend $32.17.  Write a check.
• 2/22 - You decide to put away some money for emergencies.  You stop in at the bank and open a Savings account by depositing $250.  Remember to remove the money from Checking in your Register.
• 2/23 - You decide to do some decorating in your apartment.  You stop by G-Mart and buy some wall hangings, dishes, and a house plant.  Write a check for $59.90.
• 2/24 - It's time to pay your car insurance.  Go online to the Chameleon Insurance web site and submit your electronic payment for $118.32.
• 2/25 - You stop on the way to work to get gas.  Use your Debit Card to buy $41.17 in gasoline.
• 2/26 - You and some friends decide to go to Rock & Bowl at Mega Bowling Alley.  Rather than drive back to your regular bank, you stop at an ATM at another bank and withdraw $40 from your checking account.  The bank charges you $2 for this service.
• 2/27 - You have a movie reserved at The FlixBuster.  Write a check for $21.55.
• 2/27 - When you arrive at FlixBuster you discover that they don't take checks.  VOID the check you wrote to FlixBuster and use your Debit Card instead.
• 2/28 - The Wilderness Girls dropped by selling cookies.  You buy three boxes of Minty Goodness at $4.00 per box.  Write a check to cover the cost.
• 2/29 - It's time to pay your monthly Internet bill.  Write a check to InterWebz for $39.49.  While you are there dropping off your payment, the company offers you a discount if you have Automatic Withdrawal from your checking account.  VOID the next check to leave with them and next month you will receive $5 off your bill.
• 2/29 - You stop at the SuperQuickyMart to pick up a gallon of milk.  Use your debit card for the amount of $3.41.
• 3/1 - You receive another paycheck.  Deposit it into your checking account.  Make sure you fill out a Deposit Slip to go with it, then log it in your Check Register.
• 3/2 - Your good friend has asked to move in with you.  You decide that it would really help with the cost of the rent, so you get permission from the landlord.  Your friend gives you a check for $300 for their half of the rent and you write a check for $300 for your half of the rent.  Both checks are made payable to Shady Acres Apartments and cover rent for April.

Begin Banking Simulation

You recently graduated from Kelseyville High School and got hired at Griffith Enterprises in Kelseyville, California as an office assistant producing educational videos and multimedia.  Griffith Enterprises is located at 5480 Main Street, Kelseyville, CA  95451 and the phone number is (707) 279-1234.

Your beginning salary is $2000 per month and you will be paid on the 1st and the 15th of each month.  You will receive your pay in the form of a voucher check which is typically divided with perforations in two parts -- one part being the actual check (the Net Amount of your pay) and the other part being the voucher (or record) of how your pay was calculated.  You typically Deposit the check portion into your bank account and file the voucher away for your records.

In discussing your salary with your new employer, you have learned that the following items will be deducted from your paycheck:

• Federal Income Tax:  Approximately 15% of your income goes to Federal Income Tax.  This can be less or more depending on your situation.  For example, if you are single and make less than $8,500 in a year you may only have to pay 10%... but if you make over $34,500 you may be paying 25-35%.  (And depending on your deductions and credits, you may get some [or all] of that money back in an income tax refund at the beginning of the next year.)
• State Income Tax:  Current Estimates are that California Income Tax is equal to about 9.9%.
• Social Security:  Currently we are paying approximately 4.2% of our pay toward Social Security; a program provided by the Federal Government that includes old age and survivors' insurance, old age assistance, and unemployment protection.  This is sometimes listed as FICA (Federal Insurance Contribution Act) on a voucher [or pay stub].
• Medicare:  Currently charged at 1.45%, Medicare is used to cover medical costs for older people.
• Medical/Dental:  Because you are a new employee, you are not yet eligible to receive medical or dental insurance.  Once you are eligible you will be asked to select from plan options.

Because there is a full-service bank next door, you decide to leave your old bank and set up an account with this closer bank.  Complete a New Account Application for Bank of KHS (download one here) using the following information:

• ACCT #: (leave blank for now)
• Required Signatures: 1
• Account Type: Free Checking
• SSN: (use 123-45-6789)
• Title: Your own full name
• Business or Occupation: Multimedia Production Assistant
• ATM or Debit Card?   Yes
• Internet Banking?   Yes
• Previous Bank:  Clear Lake Savings & Loan: 101 Lakeview Drive, Clearlake, California 95422
• Previous Acct. #: 8675309
• Amount of Deposit: $226.68  (Description: Transfer)
• Type of Personalized Checks:  Regular Free
• No., Style, Color, and Cover:  (leave blank)
• Starting Number:  101

Because we are starting over with a new bank, we will also begin a new Check Register.  Fill out the front of your check register with your information.  We are bringing $226.68 from our previous bank into our new bank, so open the check register and enter that amount in the "Beginning Balance" spot.

One method of keeping track of items in your checkbook is to use one line per transaction.  For our simulation, we will be using two lines per transaction -- the actual transaction on the first line and the balance and additional information on the second (usually shaded) line.

Beginning Checking: Checks and Registers

Today we're going to begin a unit on using a checking account.  First we'll do a math worksheet going over percentages, decimals, and writing amounts out in longhand. (I will be handing out a copy in class, but you can get a copy here)

Next we will explore the general layout of a personal check:

Finally we will do a quick simulation of writing checks and using a check register.  I will be passing out a worksheet with three checks and a register (you can view a copy here: Checks with Register).  Use the following scenario to complete your worksheet:

• You begin your checking account today (12/02/13) with $135.72 from your piggy bank.
• You receive a Check for $550.00 from your work and Deposit it to your checking account on 12/03/13.
• Write a Check for your rent on 12/04/13 for $525 to Kelseyville Green Apartments.
• You go to dinner at Lyndall's on Saturday Night (12/05/13) for $18.27 and use your Debit Card.
• You send a Check to Edward Teach in the amount of $31.19 on 12/06/13 for a movie you bought on eBay.
• You receive a Check for $550.00 on 12/07/13 from your work and you Deposit it to your checking account that afternoon.
• You write a Check for your car payment to Airport Auto Brokers on 12/08/13 in the amount of $224.72.
• You use Online Banking to pay $124.25 for your PG&E bill on 12/09/13.

Compare your ending balance with a neighbors to verify your accuracy.

Here are a couple video clips to explore:

The Dangers of Debt

This time of year is notorious for the growth of personal debt -- mostly due to purchasing Christmas presents with credit cards.  Today we will be starting Dave Ramsey's video series on the Dangers of Debt.

Before we begin, answer the following questions:

1. In what ways is it easier, safer, or more convenient to use a credit card instead of cash?
2. What kinds of "rewards" do credit card companies offer customers for using their cards?
3. Why is it important to "Build your credit?"
4. Why are teenagers the number one target of credit card companies?

During [or after] the video, answer the following questions:

1. About how many credit card applications does the average college student receive their first year of college?
2. What does "living paycheck to paycheck" mean?  (70% of Americans are doing it)
3. What is a "paradigm shift"?
4. How has the perception of debt changed since the early 1900's?  (Beginning with the 1910 Sears Catalog example)  How do our great grandparents, grandparents, and parents see debt differently?
5. How did credit cards begin in the 1950's?
6. Approximately how many credit card offers went out last year?  (According to this movie from a few years ago)

And something to think about:

pred·a·tor  

/ˈpredətər/

Noun

1. An animal that naturally preys on others.
2. A rapacious, exploitative person or group.

Budget: Creating an Excel Spreadsheet

If you're having trouble understanding the coordinates in Excel, try to think of them like a Battleship game:

 In this example, the boat that has been hit is at cell E7.  The boat in the bottom-right corner is at cell J10.

Rows are horizontal... like the rows of a theater.  And they are numbered -- row 3, row 4, etc.

Columns are vertical... like columns in a building.  They are lettered -- column A, B, C, etc.

Next we will open and explore this spreadsheet:  Spreadsheets

• When you open it, go to FILE > MAKE A COPY and save it to your folder to work on.

Banking: Recollections of Pine Gulch

Today we will be reading a fictional story about how a "bank" started in California during the Gold Rush (1849).  While it's fictional, it does a good job of explaining how banks work, why our printed money is so complex, how loans work, etc.

The story is located here: http://pinegulch.blogspot.com

After reading the story, answer the following questions:

1. Why was there a demand for Slim's services in Pine Gulch?  
2. How did Slim use this demand to create a monetary system for the town?
3. Why was it important for Slim to go to San Francisco to get the ink and paper to write the receipts?  
4. Why did the people of Pine Gulch accept these receipts as currency?
5. How did Slim increase the money supply in Pine Gulch?  How did he decrease it?  Who benefited from this practice?
6. Why did Slim have to leave town after Big Bart shot him?
7. How did Slim become one of the richest men in Pine Gulch?
8. Did this story change your understanding of how money or banking works?  Explain.

When finished, print and turn in your responses.

The History of Money

As we have been discussing banking and reading the Recollections of Pine Gulch story, we have touched on the topic of "What did we really use before we had money?"  The first response is usually, "gold" but there have been many other "standards" for monetary systems.

Barter	The first people didn't buy goods from other people with money. They used barter. Barter is the exchange of personal possessions of value for other goods that you want. This kind of exchange started at the beginning of humankind and is still used today. From 9,000-6,000 B.C., livestock was often used as a unit of exchange. Later, as agriculture developed, people used crops for barter. For example, I could ask another farmer to trade a pound of apples for a pound of bananas.
Shells	At about 1200 B.C. in China, cowry shells became the first medium of exchange, or money. The cowry has served as money throughout history even to the middle of this century.
First Metal Money	China, in 1,000 B.C., produced mock cowry shells at the end of the Stone Age. They can be thought of as the original development of metal currency. In addition, tools made of metal, like knives and spades, were also used in China as money.  From these models, we developed today's round coins that we use daily. The Chinese coins were usually made out of base metals which had holes in them so that you could put the coins together to make a chain.
Silver	At about 500 B.C., pieces of silver were the earliest coins.   Eventually in time they took the appearance of today and were imprinted with numerous gods and emperors to mark their value. These coins were first shown in Lydia, or Turkey, during this time, but the methods were used over and over again, and further improved upon by the Greek, Persian, Macedonian, and Roman empires. Not like Chinese coins, which relied on base metals, these new coins were composed from scarce metals such as bronze, gold, and silver, which had a lot of intrinsic value.
Leather Currency	In 118 B.C., banknotes in the form of leather money were used in China. One-foot square pieces of white deerskin edged in vivid colors were exchanged for goods. This is believed to be the beginning of a kind of paper money.
Noses	During the ninth century A.D., the Danes in Ireland had an expression "To pay through the nose." It comes from the practice of cutting the noses of those who were careless in paying the Danish poll tax.
Paper Currency	From the ninth century to the fifteenth century A.D., in China, the first actual paper currency was used as money. Through this period the amount of currency skyrocketed causing severe inflation. Unfortunately, in 1455 the use of the currency vanished from China. European civilization still would not have paper currency for many years.
Potlach	In 1500, North American Indians engaged in potlach, a term that describes the exchange of gifts at banquets, dances, and various rituals. Since the trading of gifts was so important in figuring the leaders’ community status, potlach went out of control as the gifts became more extravagant in an effort to surpass others' gifts.
Wampum	In 1535, though likely well before this earliest recorded date, strings of beads made from clam shells, calledwampum, are used by North American Indians as money. Wampum means white, the color of the clam shells and the beads.
Gold Standard	In 1816, England made gold a benchmark of value. This meant that the value of currency was pegged to a certain number of ounces of gold. This would help to prevent inflation of currency. The U.S. went on the gold standard in 1900.
Depression	Because of the depression of the 1930's, the U.S. began a world wide movement to end tying currency to gold. Today, few nations tie the value of their currency to the price of gold. Other government and financial institutions now try to control inflation.
Today	At present, nations continue to change their currencies. For example, the U.S. has already changed its $100 and $20 banknotes. More changes are in the works.
Tomorrow	Tomorrow is already here. Electronic money (or digital cash) is already being exchanged over the Internet.

*Based on NOVA Online's the Secrets of Making Money, "The History of Money."  See also Glyn Davies' History of Money from Ancient Times to the Present Day.

There is a video on YouTube which does a fair job of describing how banking was started, although it is very Euro-centric.  You can find it here: http://www.youtube.com/watch?v=D0IJCGuNtqk

Another cute cartoon of how money came about can be found here -- although it rushes through some of the important changes: http://www.youtube.com/watch?v=TLVoV6gK8mE

Homework: Interview Someone Who Has Been There

About this project:

I think it’s important for high school juniors and seniors who are getting ready to start out on their own [whether it’s at college or in a job or both] to begin thinking about money and credit.  I also feel that it’s important to ask people who have really “been there.”  As an adult, if I want to know who has the best cell phone plans or the cheapest texting, I ask a teenager.  If I want to know the best new video games, I ask a teenager.  I do that because they have the experience to help me make a smart decision.  As a teenager, you should seriously consider who has the most experience getting out on their own, getting credit, saving money, being successful, getting in financial trouble, etc. 

That’s why for this project I want you to interview “those who have been there.”  You will choose people whose opinions you respect, and ask them a series of questions.  You will use the answers to these questions to write about what you have learned.

Instructions:

        

You will choose four people (men or women from different age groups) and interview them.

• Take notes as they answer the questions – especially on things for which they offer advice.
• Try to ask follow-up questions if you want to know more about a certain subject.
• After each interview, summarize your experience (what was interesting, what were their reactions to the questions, what was surprising, etc.) in a paragraph.
• Next week we will begin typing our results in an essay and posting them to our blog.

LEARN FROM THOSE WHO HAVE BEEN THERE

#1: A person between ages 18‐23 who has been on his own for over two years:

• What kind of things did you buy before you started out on your own?
• How did your spending patterns change when you were really on your own?
• What do you wish you had known about spending or saving money when you started out?
• How do you feel about using credit?
• What were your parents/caretakers attitudes about borrowing money and being in debt?
• What would you have done differently with your spending patterns if you started over again?
• What advice can you offer a person starting out?

#2: A person between ages 24‐30 who has a family:

• What kind of things did you buy before you started out on your own?
• How did your spending patterns change when you were really on your own?
• What do you wish you had known about spending or saving money when you started out on your own?
• Now that you have a family, have your spending patterns changed?
• How do you feel about using credit?
• What were your parents/caretakers attitudes about borrowing money and being in debt?
• What would you have done differently with your spending patterns if you started over again?
• What advice can you offer a person starting out?

#3: A person between ages 35‐60:

• What kind of things did you buy before you started out on your own?
• How did your spending patterns change when you were really on your own?
• How have your spending patterns changed since you were 35 years old?
• What do you wish you had known about spending or saving money when you started out?
• If you have a family, have your spending patterns changed?
• How do you feel about using credit?
• What were your parents/caretakers attitudes about borrowing money and being in debt?
• What would you have done differently with your spending patterns if you started over again?
• What advice can you offer a person starting out?

#4: A person older than 65:

• What kind of things did you buy before you started out on your own?
• How did your spending patterns change when you were really on your own?
• How did your spending patterns change during your child rearing years?
• How have your spending patterns changed since you were 60 years old?
• What do you wish you had known about spending or saving money when you started out?
• Did you use credit during your younger years?
• What were your parents/caretakers attitudes about borrowing money and being in debt?
• What do you wish you had known about spending or saving money when you started out on your own?
• What would you have done differently with your spending patterns if you started over again?
• What advice can you offer a person starting out?

---

(I will get you a copy of these questions so you don't have to copy/print)