Can you afford it?

Debt! Hard to live with it! Hard to live without it! A Webquest for seventh grade math Designed by Micky Huff Mhuff@brenau.edu
Introduction | Task | Process | Evaluation | Conclusion | Credits | Teacher Page

Intro duct ion
Congratulations !You are twenty-three years old and you have just graduated from college. Even though you have just graduated from college, you have already entered into the world of debt! The cost of your college tuition has caused you to accumulate $25,432.50 of debt because of student loans and you have $8,600 dollars of debt in credit cards. Not to mention that you have a fiancé that wants to get married as soon as possible, but he or she will not marry someone that is in debt over $160,000. Your fiancé also wants to marry a person that has a car and owns his or her own house. Now that you have graduated from college, you are anxious to please your fiancé and this will require you to be in even more debt! You have also gained employment and you are ready to buy your

first house and car! You have to buy a house, and a car while not exceeding $160,000 in debt.
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T a s k
You will design and create a budget that allows you to pay off your debts, save money to get married, and buy a house and a car. You will show your budget as a circle graph and you will write a one-page report that describes your budget and your plan to get out of debt. Your final product will be displayed on a poster board that shows your budget displayed as a circle graph, a onepage report about your budget, and a picture of your house and car.

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T h e P r o c e s s
You will work in groups of three students. Each student will be assigned a part in this WebQuest.

Car Buyer – this student is in charge of buying the car. House Buyer – this student is in charge of buying the house. Budget Boss – this student is in charge of the budget. It is his or her job to make sure t hat the group stays under budge t. Even though each student is in charge of something, the group must agree on the purchase in order to complete the transaction.

What’s your current total debt? The first step that you need to do is to find the sum of your debt so that you will know how much more debt you can acquire to buy your first house and car. Remember your total debt cannot exceed $160,000. T o t a l D e b t _ _ _ _

_ _ _ _

Occu pation

Then you should pick an occupation. After you pick an occupation, you need to find the starting salary for your job. To find the starting salary for an occupation visit www.cbsalary.com/salarycalculator/?siteid=sep Since this is your first year out of college, your salary cannot exceed $50,000. (You do not have to fill out the survey, just click no thank you to see your salary

results.) O ccu pati on ___ ___ ___ ___ ___ ___ ___ N et Ear nin gs per mo nth 1. It’s time to calculate your net earnings per

month. Your net income is the amount that you actually bring home with you after taxes. Divide your annual salary by 12 to find your monthly salary and find 2/3 of your monthly salary to estimate your net earnings each month. Net Earnings per month__________________

Buy your first house!
Mo rtg age Pay me nt

Next it is time to pick a house. Tip (Make sure your fiancé also likes it) Go to www.century21.com to search for a house that fits into your budget plan. Once you have found a house that you are interested in, you need to calculate the monthly mortgage payment for that house to see if you can afford it. To calculate the monthly mortgage payment go to http://www.century2 1.com/learn/calculat ors/mortgage.aspx When calculating the monthly mortgage

payment we will assume that the interest rate is 6% for a 30 year loan, the annual property taxes is $1000.00 and that you do not have any money saved for a down payment. Am oun t of mo nthl y mor tga ge pay me nt ___ ___ ___ _

Pick out your car!
After you have picked your house and determined the amount of your monthly mortgage payment. Go to www.traderonline.com to search for your first car. Once you have found a car that you like go to www.habershamfcu.com/calculators/auto_lo an/clc.html to calculate your monthly car payment. When calculating the monthly car payment, we will assume that it is a 48 month loan with a 5% interest rate. Amount of Car Payment ________________

Don’t forget about your monthly bills!
When calculating your budget, you also have to think about your bills and expenses that you will have. These are the bills and expenses that you will have each month.
Electric-$40.00 Water- $20.00 GasCable$50.00 $35.00

Cell Phone Bill- $60.00

Car Insurance – $90.00 Gasoline- $300.00 Groceries-$375.00

T i m e f o r a b u d g e t !

Calculate the sum of your expenses per month and make sure that your expenses do not exceed 90% of your monthly net income. You need to make sure that you save 10% so that you can start paying off your credit card debt and student loans. 8.Show your final budget in the form of a circle graph that shows each of your spending categories as a percent of your monthly net income.

Your budget is required to have these categories. You can add more categories to it if you are able to fit them into your budget.

Bills, Automotive (car payment and insurance) , Mortgage, Gasoline, Clothes, Groceries, and Savings

Are you ready to make the final product?
9.Write a one -page paper that describes your job, house, and car. Also give a detailed account of your budget in your paper. 10. For your final product, you will attach your circle graph, paper, and pictures of your house and car to a piece of poster board for the class to view. See the rubric to follow the proper guidelines.

Congratulations! You now have a house, a

car, a happy fiancé, and a plan to get out of debt and manage your money wisely!

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Evaluation
(This is how you will be evaluated so please read carefully!) Beginning Developing 1 2 The student has formulated a welldesigned budget that will allow him to be financially stable. More than 2 categories that are to be shown in the budget are missing. The student’s debt does not exceed 1-2 categories that are to be shown in the budget are missing. The student’s debt does not exceed Accomplishe d 3 All of the required categories are shown in the budget. The student’s debt does not exceed $150,000. The student

Exempla 4

All of the required categori are show in the budget. The student’ debt doe not exce $150,000

The student has written a one page paper that gives a detailed description of the budget that is grammatical ly correct.

$150,000. The student has designated at least 1% of his or her earnings to savings. There are 79 errors in the calculations in the budget. The paper is less than ½ of a page long. The student has adequately described his or her budget. There are 68 grammar and spelling mistakes in the paper. The student’s circle graph is messy and hard to read. The sum of the vectors in the circle graph do not equal 100%, and their size does not correlate with the percent

The student has produced a circle graph that is easy to read, colorful and gives an accurate depiction of the budget.

$150,000. The student has designated at least 5% of his or her earnings to savings. There are 46 errors in the calculations in the budget. The paper is at least ½ of a page in length. The student has adequately described his or her budget. There are 68 grammar and spelling mistakes in the paper. The student’s circle graph is neat and easy to read. The sum of the vectors in the circle graph do not equal 100%, and their size correlates with the percent that they

has designated at least 10% of his or her earnings to savings. There are 13 errors in the calculations in the budget. The paper is at least ¾ of a page in length. The student has adequately described his or her budget. There are 35 grammar and spelling mistakes in the paper. The student’s circle graph is neat and easy to read. The sum of the vectors in the circle graph equal 100%, and their size correlates with the percent that they show. There are 1-

The stud has at le 10% of h or her earnings designat as saving All calculati in the budget a correct.

The pape is at leas one page length. student describe his or he budget i detail. There ar 2 gramm and spel mistakes the pape

The student’ circle gra is neat, easy to read and colorful. The sum the vect in the cir graph eq 100%, an their size correlate with the percent that they

that they show. There are more than 4 errors in the percent calculations . The student The has student’s produced a final final product product is that shown on a accurately poster portrays a board. It budget that does not will allow give an them to be accurate financially view of stable. what a well structured budget should look like. It does not meet the requiremen ts of the assignment . The student does not have a picture of his house or car on his poster board.

show. There 2 errors in are 3-4 the percent errors in calculations. the percent calculations . The student’s final product is shown on a poster board. It gives a vague picture of what a depicts a wellstructured budget that meets only some of the requiremen ts of the assignment . The student has at least 1 picture of his house or car on his poster board. The student’s final product is shown on a poster board and it has a title. It also accurately depicts a well -structured budget that meets most of the requirement s of the assignment. The student’s final project also shows a picture of his house and car.

show. Th percents have als been calculate correctly

The student’ final product shown o poster board. T final product colorful, has a tit and accurate depicts a wellstructure budget t meets al the requirem ts of the assignm . The student’ final pro also sho a picture his hous and car.

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Conclusi on
After you have completed this lesson, you will understand how positive and negative numbers relate to real life. You will also be able to use computation skills proficiently and analyze data by looking at a circle graph. Both of these skills relate to the GPS standards, and this is also a meaningful activity that you will remember when you think about buying a house or car in the future.

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Credi ts and Referen ces
Clip art images came from the Microsoft Office Online Clip art gallery.

http://office.microsoft.comenus/clipart/FX101321031033.aspx?pid= CL100570201033

Georgia performance standards were obtained at http://www.georgiastandards.org/SearchR esults.aspx Salary information for occupations as obtained at

www.cbsalary.com/salarycalculator/?siteid=sep Home information was obtained from century 21 at www.century21.com Calculations for mortgages were obtained from century 21 at www.century21.com/finance/tools.aspx Information about cars was obtained from traderonline at www.traderonline.com Auto loan information was obtained from the Habersham County federal credit union

at www.habershamfcu.com/calculators/auto_lo an/clc.html

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Teach er Page