Twenty-Something Simulation Project

Name: Abhi Varun Madela

Roommate: No

You are twenty-something and it is time to move out of your parent’s

home! You work 40 hours per week and your wage is $20.00 per hour
gross income. You will be required to calculate your net income and
hypothetical rental accommodation, buy a car, food, clothing, etc. The
purpose of this project is to help you learn how to budget and manage
financial resources effectively. You may choose to live with a
roommate and share rent, but you must each complete and hand in a
separate booklet with a separate budget. Good luck!

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My Personal Profile – Age Twenty-Something – Take your best guess
as to where you want to be in life at this age
1. I will move out of my parents’ home when I am 20 years old.
2. My occupation or job at that time will be Tech Sales Associate.
3. I would like to be making $ 5000 each month from my job. *Use what you are making in this project
as a reference point*

4. My educational path will be going through post-secondary

5. I will be married sometime in my twenties. YES NO MAYBE
6. How many children will I have by the time I am 30? 1
7. I will be driving a Nissan Sentra
8. I will buy a home in my twenties YES NO MAYBE
9. My home or living accommodations will be described as: MY PREDICTION – Do you think you
A studio apartment - A studio apartment is a great for people who prefer a more compact will be able to afford this lifestyle on
living space or who don't need a lot of room. There's usually a separate bathroom, and
sometimes a small entryway as well. Because they're smaller than regular apartments,
$20/hour? Explain.
studios are often more affordable, which makes them a popular choice for students, young
professionals, and anyone who wants to live alone without breaking the bank. As a student that recently started a
new job that pays $20 per hour, I
10. I will be living in/near what town or city? believe I can do it. I'm a diligent saver
Still probably Calgary for now and manage my finances well, so with
this income, I'm confident that I can
11. Other “big” things I will own are:
afford the lifestyle without worrying
a. Very Powerful MacBook Pro about money. At $20 per hour, it may
b. Electric E-bike not seem like a lot, but I believe it's
c. Basic kitchen appliances, utensils and other possible enough to cover my basic needs while
furniture still having money left over for creating
a side hustle. One of my priorities is to
12. My major accomplishments in my twenties will be: upgrade my living situation from my
a. Built successful online income sources small, cramped apartment to a larger
b. Able to get in a decent post-secondary/Graduated space to raise a family. Overall, I
c. Buying first home or car believe that I can achieve a
comfortable and fulfilling lifestyle with
13. I will take a yearly vacation. YES NO this new income while still being
14. Some of my vacations will be: financially responsible.

a. Kananaskis Trips
b. Camping
c. Road Trip with Friends

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 NOW…. Follow along with the SIMULATION provided to you on the
cover page of this assignment. Follow directions CAREFULLY and do
your best to stay UNDER OR ON budget. *
Pay Cheque Written Definitions – Be detailed in your responses
Gross income refers to the total amount of income that an individual earns before any taxes, deductions or other expenses are subtracted. This includes all sources of income
Gross Income such as salaries, wages, bonuses, commissions, tips, rental income, and other types of compensation.

(Pay/Earnings) Gross income is important because it is used to determine an individual's tax liability. When someone files their taxes, they must report their gross income for the year. The
tax code then allows for certain deductions and credits to be taken, which reduce the amount of income that is subject to taxation.
Net income in personal finance refers to the amount of money you take home after all the deductions and expenses have been subtracted from your gross income. This is
Net Income the actual amount of money that you have available to use for your living expenses, savings, and other financial goals.

(Pay/Earnings) Your net income is an essential financial metric that helps you understand your financial situation. It can help you determine your ability to cover your living expenses, save
for the future, pay off debt, and invest in your financial goals. Your net income is also important for tax planning, as it helps you determine how much income tax you owe
and how much you can contribute to retirement plans and other tax-advantaged accounts.
The Canada Pension Plan (CPP) is a government-run program that provides financial assistance to Canadian workers in retirement or in the event of disability or death. In a
Canada Pension personal context, the CPP is a retirement savings program that Canadians contribute to throughout their working lives.

Plan (CPP) Under the CPP, workers and their employers are required to contribute a percentage of the worker's earnings to the plan. The amount of the contribution is based on the
worker's earnings, up to a maximum amount, and is matched by the employer. The contributions are then invested by the CPP Investment Board, which manages the assets
of the plan.

When a worker reaches retirement age, they are eligible to receive CPP benefits, which are calculated based on the number of contributions made over their working years.
The amount of the benefit depends on various factors, such as the worker's earnings history and the age at which they start receiving benefits.
Employment Insurance (EI) is a program administered by the government of Canada that provides temporary financial assistance to individuals who are unemployed or
Employment unable to work due to illness or caregiving responsibilities. EI is funded by contributions made by both employees and employers.

Insurance (EI) To be eligible for EI, individuals must have worked a certain number of insurable hours in the past year, depending on their region and employment situation. Insurable hours
are defined as hours worked in jobs that are covered by the EI program. Individuals who are eligible for EI can apply for benefits, which are calculated based on their earnings
in the previous year, up to a maximum amount.

Income tax in a personal context refers to the amount of tax an individual owes to the government based on their total income. This tax is imposed by the government on
Income Tax the income earned by individuals, including wages, salaries, bonuses, tips, rental income, and other forms of income.

The income tax system is designed to be progressive, which means that individuals who earn more income generally pay a higher percentage of their income in taxes. The
amount of income tax owed is typically calculated based on a graduated tax rate schedule, which means that as an individual's income increases, the percentage of income
tax owed also increases.

Deductions and credits can reduce the amount of income tax owed by an individual. Deductions are expenses that can be subtracted from taxable income, such as mortgage
interest, charitable donations, and business expenses. Credits are amounts that can be subtracted from the amount of income tax owed, such as the child tax credit or
earned income credit.

In summary, income tax in a personal context refers to the tax an individual owes to the government based on their total income. The tax is calculated based on a graduated
tax rate schedule, and deductions and credits can reduce the amount of tax owed. Individuals are required to file an income tax return every year to report their income and
calculate the amount of tax owed or the amount of refund due.
Long Term Disability (LTD) is a type of insurance policy that provides financial benefits to an individual who is unable to work due to an injury or illness that has lasted or is
LTD (Long Term expected to last for an extended period, typically six months or longer. In a personal context, LTD is typically purchased as part of an employer-sponsored benefit plan,
although it can also be purchased individually.
Disability)
If an individual becomes disabled and is unable to work for an extended period, LTD benefits can provide a source of income to help cover living expenses and medical costs.
LTD benefits are typically paid out as a percentage of the individual's pre-disability income, and may be subject to a maximum benefit amount and a waiting period before
benefits begin.
Union dues are regular fees paid by a member of a labor union to support the activities and operations of the union. These dues are typically deducted from an employee's
Union Dues paycheck and are based on a percentage of their gross income or a flat fee. The exact amount of the dues may vary depending on the specific union and industry.

Union dues are used to fund a variety of union activities and programs, such as bargaining for better wages and working conditions, organizing efforts, legal representation,
education and training programs, and other member services. They may also be used to support political campaigns or lobbying efforts that align with the union's goals and
values.

Union dues are typically negotiated between the union and the employer as part of a collective bargaining agreement. In some cases, employees may be required to join a
union and pay dues as a condition of employment in a unionized workplace. However, in other cases, membership in a union may be optional, and employees may choose
whether to join and pay dues.
Stock options and bonds are two common investment options that individuals may consider in a personal financial context.
Stock Options/
Bonds Stock options refer to the right to purchase shares of a company's stock at a predetermined price. These options are often granted to employees as a form of compensation,
and can also be purchased by individual investors on the open market. The price at which the stock options can be exercised is known as the "strike price," and the length of
time during which the options can be exercised is known as the "expiration date." If the stock price increases above the strike price before the options expire, the holder of
the options can exercise them to purchase the stock at the lower strike price and then sell the stock at the higher market price, resulting in a profit. However, if the stock
price does not increase or decreases below the strike price, the options may expire worthless.

Bonds, on the other hand, are debt securities that are issued by companies or governments to raise capital. When an individual purchases a bond, they are essentially loaning
money to the issuer in exchange for regular interest payments and the return of the principal amount at the end of the bond's term. Bonds can vary in terms of their risk and
return, with higher-risk bonds typically offering higher yields to compensate for the increased risk.
Advance earnings refer to the income that an individual receives in advance of their regular paycheck or salary. Essentially, it is a prepayment of salary that is made to the
Advance Earnings employee by their employer. This can be in the form of an advance on their regular salary, a bonus payment, or a loan.

Personal advance earnings can be used for a variety of purposes, such as covering unexpected expenses, paying bills, or making a large purchase. However, it is important to
note that personal advance earnings are not free money and must be repaid in a timely manner.

To receive personal advance earnings, an employee may need to provide proof of income and employment, as well as fill out an application or agreement. In some cases, the

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 employer may require collateral, such as a portion of the employee's future paychecks or personal assets.
Personal overtime earnings refer to the extra money an employee earns for working beyond their normal working hours. When an employee works more than their standard
Overtime Earnings working hours, they are entitled to receive additional compensation in the form of overtime pay, which is usually calculated at a higher rate than their regular hourly rate.

Overtime earnings are regulated by local labor laws and company policies, which determine the eligibility criteria, the maximum number of overtime hours an employee can
work, and the rate of pay for overtime hours. For example, the Fair Labor Standards Act (FLSA) requires employers to pay eligible employees at least one and a half times
their regular hourly rate for any hours worked beyond 40 hours in a workweek.

Now calculate your NET MONTHLY INCOME:

$20.00 per hour x 8 hours per day x 21 days per month = Gross income $3360

Gross Income $3360 x 14% = Income Tax Deduction $470.40

Gross Income $3360 x 1.73% = Employment Insurance Deduction $58.13

Gross Income $3360 x 4.95% = CPP – Canada Pension Plan Deduction $166.32

Gross Income $3360 x 1% = Union Dues $33.6

Income Tax + EI + CPP + Union Dues = Pay Cheque Deductions $728.45

Gross Income $ 3360 - Pay Cheque Deductions $ 728.45 = Net Income $ 2631.55
**Add this NET INCOME TOAL to page 18 on your final monthly budget**

To Have A ROOMMATE....OR NOT

Determine the advantages & disadvantages of living on your own or having a roommate. For
the purpose of this project, you may only choose one roommate or live on your own.

Advantages Disadvantages
Freedom and independence. Loneliness and isolation.

Live on my Privacy.

Lack of social interaction and companionship.

own Increased responsibility and self-sufficiency.

Increased financial burden.

Reduced stress and conflict.
Opportunity for personal growth.
Limited help with household tasks and chores.

Ability to set your own schedule and routine.

No one to share responsibilities with.

No need to compromise on decor or lifestyle choices.

Potential safety concerns.

Greater control over cleanliness and organization.

Lack of support system during difficult times.

More space to yourself.

No one to split rent and utilities with.

Opportunity to fully relax and unwind in your own home.

Difficulty in affording a desirable living space alone.

Increased risk of mental health issues such as depression and anxiety.

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 Cost savings Reduced privacy and personal space

Live with a Shared responsibilities Increased potential for conflicts and disagreements

Roommate Social opportunities Shared responsibility for household chores and expenses

Built-in support system Differences in lifestyle and living habits can cause tension

Security Limited control over the environment and decor of the living space

Diverse perspectives Difficulty in finding compatible roommates

Potential for friendship Distractions and disruptions to personal routine and productivity

Division of labor Risk of financial issues, such as unpaid rent or damage to shared property

Increased accountability Difficulty in hosting guests or entertaining in shared spaces

Improved communication skills Potential for health and hygiene issues due to sharing close quarters.

My decision is to: not have a roommate

I believe this is the best choice for me because:

I can confidently say that not having a roommate is the best choice for me. I value my privacy and having control over my living space, which is
difficult to achieve when sharing a room with someone else. Living alone allows me to decorate my room to my liking, sleep and wake up on
my schedule without worrying about bothering someone else, and use common spaces at my leisure. Additionally, living alone eliminates the
potential for conflicts and disagreements that can arise when sharing a living space. I can focus better on my studies and work without
distractions or interruptions, which ultimately leads to a more productive and stress-free lifestyle. Overall, not having a roommate has
provided me with a more comfortable, independent, and fulfilling living experience.

What characteristics would be essential in your roommate:

(Whether you chose to live with a roommate our not):

If I were forced to have a roommate, there are certain characteristics that I would consider essential for a comfortable living situation. Firstly,
cleanliness and tidiness would be a top priority for me. I would need my roommate to be respectful of shared spaces and to clean up after
themselves. Additionally, communication skills would be crucial. Being able to openly and respectfully communicate about any issues or
concerns would be important for maintaining a positive living environment. Trustworthiness and reliability would also be important, as I
would need to be able to trust that my roommate would pay their share of the rent and bills on time. Finally, I would hope for a roommate
who is considerate of others and able to compromise when necessary to ensure that both of us are able to feel comfortable in our shared
living space.

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 ACCOMMODATION OPTIONS
Type of Rental Advantages
Accommodation
1. Cost-effective: Renting a townhouse
Townhouse or Duplex or duplex saves money compared to
buying a home in the same location
2. More space: Townhouses and
duplexes have multiple floors and
rooms, providing extra space.
3. Privacy: Fewer neighbors and shared
walls in a townhouse or duplex offer
more privacy.
4. Maintenance: Landlords are
responsible for maintenance and
repairs, saving tenants time and
money.
5. Community: Some townhouse and
duplex communities have shared
amenities, fostering a sense of
community among residents.
1. Flexibility: Renting an apartment
Apartment provides flexibility in terms of
mobility, allowing you to move out
easily if you need to relocate for
work or personal reasons.
2. Low maintenance: Renters do not
have to worry about maintenance
and repairs, as these responsibilities
usually fall on the landlord or
property management.
3. Amenities: Many apartment
complexes offer amenities such as
fitness centers, swimming pools,
laundry facilities, and recreational
areas, which may not be available to
homeowners.
4. Lower upfront costs: Renting requires
less upfront costs compared to
buying a house. Renters only must
pay for the security deposit and first
month's rent, whereas homebuyers
must come up with a down payment
and closing costs.
5. Location: Apartments are often
located in urban or suburban areas,
which provides convenient access to
local attractions, entertainment, and
public transportation.
1. Privacy: Single detached houses offer
Single Detached House more privacy compared to multi-unit
buildings as there are no shared
walls, floors or ceilings with other
tenants.
2. Outdoor Space: Renting a single
detached house often comes with a
yard or outdoor space, which can be
great for gardening, outdoor
activities, and for pets to play.
3. More space: Single detached houses
generally offer more space compared
to apartments or townhouses,
making them a great choice for
Disadvantages Average Rental
Costs In YYC
1. Limited control over the property: As a On average, as of 2021, the rental cost of a townhouse
renter, you have limited control over
the property, such as the ability to
or duplex in Calgary ranges from CAD $1,500 to CAD
$2,500 per month. This average can fluctuate due to
make changes or renovations, or even factors such as the neighbourhood, square footage, and
decorate to your liking. the number of bedrooms and bathrooms.
2. No equity: Renting means that you are
paying someone else's mortgage and
not building any equity for yourself.
You are essentially paying for a place
to live, and once you move out, you
have nothing to show for it.
3. Rent increases: Landlords have the
right to increase rent prices at the end
of each lease term or even in the
middle of a lease term in some cases,
which can make budgeting and
planning for the future difficult.
4. Limited privacy: In a townhouse or
duplex, you may have shared walls,
meaning you can hear your neighbors
and they can hear you. This can limit
your privacy and create an unpleasant
living experience.
5. Limited space: Depending on the size
of the townhouse or duplex, you may
have limited living space, which can be
a challenge if you have a large family
or need extra space for work or
hobbies.
1. Limited Control: When renting an The average rental cost of an apartment in Calgary,
apartment, you are limited in your
ability to make significant changes or
Alberta, Canada varied depending on the type, location,
and size of the unit. According to the data from Zumper
customizations to the space. You may and RentBoard, the average rent for a one-bedroom
not be able to paint the walls, install apartment in Calgary was around $1,200-$1,400 per
new fixtures or make any major month, while the average rent for a two-bedroom
renovations without the landlord's apartment was around $1,500-$1,800 per month.
approval.
2. Rent Increases: Rental rates can
increase, especially in popular areas
with high demand. This can cause
financial strain and uncertainty in the
long run, making it difficult to budget
or plan.
3. Security Deposits: Many landlords
require a security deposit upfront,
which can be a significant amount of
money. There is always the risk that
you may not receive the full deposit
back at the end of the lease, even if
you've kept the apartment in good
condition.
4. Limited Space: Apartments tend to be
smaller than houses, which can lead to
a feeling of cramped living. This can
make it difficult to entertain guests or
to store personal belongings if you
have a lot of possessions.
5. Lack of Permanence: When renting an
apartment, there is no guarantee that
you will be able to stay in the same
location for an extended period. The
landlord may decide not to renew your
lease or you may need to move for
personal or professional reasons. This
lack of permanence can lead to a
feeling of instability and uncertainty.
1. Lack of Control: Renters have less According to a report from the Calgary Real Estate
control over their living space, as they
are subject to the landlord's rules and
Board in September 2021, the average rental cost of a
single detached house in Calgary, Alberta, Canada was
regulations. They may not be able to approximately $2,050 per month
make changes or upgrades to the
property without permission.
2. Limited Privacy: Renters may have
limited privacy in a single detached
house, as they may have to share walls
or yards with neighboring properties.
3. Inconsistent Maintenance: Renters
may have to deal with inconsistent
maintenance of the property, as
landlords may not always promptly
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 families or people who require more address issues or provide necessary
space for hobbies or work. repairs.

4. Customization: Tenants are often 4. Lack of Long-Term Stability: Renting a

allowed to customize the interior of a
single detached house to their liking,
which can make it feel more like
home.
5. Peaceful Environment: Single
detached houses are generally
situated in quieter neighborhoods
and away from the hustle and bustle
of the city, providing a peaceful
environment for tenants to live in.
single detached house offers less long-
term stability compared to owning a
home. Renters may have to deal with
the uncertainty of lease renewals, rent
increases, or the landlord deciding to
sell the property.
5. Financial Burden: Renting a single
detached house can be more
expensive than other types of housing,
and renters may struggle to afford rent
and other expenses over time.

Decisions for Consumers

For each of the following situations, decide which kind of housing would be best. Give reasons
for your decisions.

 Retired couple with no children who don’t want to cut grass or do maintenance.
A condo or an apartment would be the best choice. This is because condos and apartments often have maintenance staff who take care of the property, including cutting the
grass and maintaining the building's exterior. This will allow the couple to enjoy their retirement without having to worry about the upkeep of the property. Additionally, condos
and apartments often have amenities such as fitness centers, swimming pools, and communal gathering spaces that can make retirement living more enjoyable. The couple can
also benefit from the security features that many apartment buildings offer, such as controlled entry, intercom systems, and security cameras. Finally, living in a condo or
apartment can be more affordable than owning a house, especially if the couple is looking to downsize and save money in retirement.

 Middle aged couple with two small children, who desire room for their children and
friends to visit.
A single-family home would be the best choice. This is because a single-family home will offer the most space and privacy for the family. With young children, having a backyard
and a safe outdoor space for them to play is also essential. Additionally, a single-family home can accommodate visitors more easily than an apartment or condo. The family can
have spare bedrooms for guests, and with a larger living room or family room, there will be more space for children to play and have friends over. A house can also offer more
storage space, which can be essential when raising a family. Finally, owning a home can be a good investment in the long term and can provide a sense of stability for the family.

 A young couple with a small child.

A small house or a townhouse would be the best choice. This is because these types of properties typically have a yard or outdoor space for the child to play in, and the house or
townhouse itself will provide more living space for the family than a condo or an apartment. Additionally, a small house or townhouse will offer the family more privacy than a
condo or apartment, as there are no shared walls with neighbors. This can be particularly important for young families who may be adjusting to life with a new baby and require
a quieter and more private living space. Finally, owning a small house or townhouse can be more affordable in the long run than renting an apartment or condo, as the family
will be building equity in their home over time, which can be an important investment for their future.

 Young, single person, who travels frequently for work.

A studio apartment or a small one-bedroom apartment would be the best choice. This is because a small apartment will be easier to maintain and require less upkeep while the
person is away. Additionally, a smaller apartment will likely have lower utility costs and be more affordable than a larger apartment or a house, which can be beneficial if the
person is traveling frequently and not spending much time at home. Finally, living in an apartment can offer more security features than a house, such as controlled entry and
security cameras, which can be important for a single person who may be traveling frequently and leaving their home unattended for extended periods.

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HOUSING
What type of home or apartment do you picture yourself living in when you decide to move
out? Explain.

As a student, I picture myself living in a studio apartment when I decide to move out. As a young adult, I value
independence and the ability to live on my own, and a studio apartment would offer me just that. It would
provide me with my own space while still being affordable, which is especially important as a student.
Additionally, a studio apartment would require less maintenance and upkeep, which would allow me to focus
on my studies and other priorities. However, I also dream of working hard and being able to afford a big
house in the future. This is something that motivates me to work towards my goals and achieve success,
knowing that one day I can have a place to call my own that is spacious and comfortable.

For the purposes of this simulation, you will consider rental properties only – you will not be buying a house. Find a place to rent by doing an
internet search (ww.rentfaster.ca, mainst.biz/apartments/calgary or www.bwalk.com/en-ca is a good place to start). Be sure to consider the
area you want to live in as well as the terms of the lease (month-to-month? 1 year, 2 years? pets allowed? utilities included or separate? etc.).
Attach the add below.

https://rentola.ca/listings/spacious-modern-one-double-bedroom-apartment-fe9d5c

Monthly cost of renting house/apartment: $

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680
OTHER RENTAL EXPENSES
Tenant Insurance
When you rent a home, you must also have tenant insurance in case of fire, theft, flooding or
natural disaster. Your landlord will have insurance on the building, but not on your personal
possessions. On the following chart, find the cost per year that is closest to the replacement
value of what you hope to own when you are 22-29. Beside it is an example of the yearly
insurance premium you might need to pay.

Replacement Coverage Yearly Premiums

$10 000 $92 per year
$15 000 $126 per year
$20 000 $159 per year
$25 000 $184 per year
$30 000 $208 per year
$40 000 $268 per year
$50 000 $304 per year
Locate the yearly premium you might have to pay. Divide this by 12 to give you the monthly
payment.

$___________184_______________ divided by 12 = $__________15.33_____________

Yearly Premium Monthly Premium

Monthly cost of Tenant Insurance $ 15.33

Phone Services

The average cost of a monthly cellphone bill ranges from $50-$150/month, depending on the
package you need. Research the cost of the options that best suits you.

Cellphone/month $45
Extra Services (if needed) $ N/A
Long Distance (if needed) $ N/A
Extra Data (if needed) $ N/A
Land Line (if needed) $ N/A

Monthly cost of Phone/Cellphone $45 Provider Freedom

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Cable TV/Web-based Streaming Services

In Alberta, Cable TV costs $100 per month for basic services. Netflix and other web-based
streaming memberships cost around $8.00-$25.00 per month. Research the cost of the options
that best suit you. You also may want to consider bundling a cable and internet package.
**Note: Even if your cable is included in your rent, still research the cost so you have an understanding of the
expense in the future, but DO NOT include it in your final calculations**

Monthly cost of Cable Television/Web-based Streaming $0

Provider N/A Cable included in rent YES or NO

Internet Access

Having internet access is very desirable if your income can afford it. Costs are approximately as
follows. Research the cost of the options that best suits you. You also may want to consider
bundling a cable and internet package.
 High speed through Telus: $65
 High Speed Cable connection: $79
**Note: Even if your internet is included in your rent, still research the cost of so you have an understanding of the
expense in the future, but DO NOT include it in your final calculations**

Monthly cost of Internet $89 Provider Telus

Internet included in rent YES or NO

Utilities: Natural gas, water and sewage and electricity expenses are sometimes included in
the rent unless the rental home has an outside entrance (house, townhouse or duplex), in
which case they are not usually included. Or sometimes if you are renting a room or a floor you
will be responsible for paying a portion of the utilities.

Natural Gas

It is hard to estimate utilities because they vary so much depending on different circumstances.
Here are some very rough guidelines of how much they might cost in Alberta. Please note that
most condos won’t have natural gas, and if they do the cost would be very low.
 Average (1200 sq. ft) house - $140 per month
 Large new home (1800 sq. ft) - $200 per month
 Larger old home with heated garage - $300 per month

Monthly cost of Natural Gas $ ____________ Provider_____________

Natural Gas included in rent YES or NO Page | 10
Water and Sewage

For a small home, water and sewer costs approximately $100 per month. For a large home,
$140. This cost is often included if your rental is a condo/apartment/basement suite.

Monthly cost of Water and Sewage $ ____________

Water and Sewage included in rent YES or NO

Electricity
An average two bedroom apartment in Alberta with two people living in it will cost about $75
month for electricity. A larger apartment or townhouse will cost about $100. A small 1100
square foot home with the usual appliances will cost about $150 per month for electricity. A
large executive-type home with many appliances, a hot tub, and air conditioning may cost over
$200 per month. **Note: Even if your utilities are included in your rent, still research the cost of each utility so
you have an understanding of the expense in the future, but DO NOT include it in your final calculations**

Monthly cost of electricity $50-90 Provider Enmax

Electricity included in rent YES or NO

ADDING IT ALL UP. . . . .

(Remember: *Don’t include your utilities if they are included in your rent, put it as $0.00)
Monthly cost of renting the home/apartment $ 680
Tenant Insurance $ 15.33
Phone $ 45
Cable TV/Web-based streaming* Included? $0
Internet * Included? $ 89
Natural Gas* Included? $ Included
Water and Sewage* Included? $ Included
Electricity * Included? $ 70 (Median)
TOTAL $ 899.33

Total Monthly Cost of Renting Home/Apartment $ 899.33

**Add this total to page 18 on your final monthly budget**

Take note: You should not spend more than 35% of your net income on rent and utilities.

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One-Time Moving in Expenses
As well as the monthly expenses, there are one-time moving-in expenses to consider. Research
the options that best suit you.

Security/Damage Deposit (usually same as rent) $680

Hook-up costs & Deposits (*You usually do not have to pay hook-up costs
if your utilities are included in your rent. May have to pay them for cable and internet)
Phone $45*
Power $70*
Water $0*
Cable $0*
Internet $89*

Purchase of Cell Phone ($100-$1000) or Telephones ($75 $0 (will use existing one)
per phone)
Provide a brief explanation on where you plan to get all your house supplies from (new, used,
passed down from relatives/friends):
As a student moving into a new apartment, I can research where to get all my household supplies from. I've found that online retailers like Amazon and Walmart that offer a
wide range of household items that I can easily browse through, compare prices, and read reviews before making a purchase. Discount stores have also caught my eye, as
they offer a variety of household items at discounted prices. I've also considered checking out thrift stores like Goodwill and Salvation Army, which offer gently used items at
a fraction of the cost. Additionally, I've been keeping an eye out for garage sales in my area where I might be able to find great deals on household items. I know I can also
purchase items such as towels, cleaning supplies, and kitchenware at local supermarkets like Walmart and Target. Lastly, I'm considering department stores like Macy's and
Kohl's, as they have household items available for purchase, including bedding, towels, and kitchenware. I plan to compare prices and quality before making any purchases
to ensure that I get the best value for my money. But I also have old, existing appliances and furniture from my parents which they would allow me to take.

Examples of house supplies: Vacuum, toaster, utensils, dishes, pots and pans, towels etc.
New furniture ($500-$5000) $ 0 (Apartment will be furnished)
*Think of what may be given to you, or maybe used items you can find at lower cost*
Laundry supplies $99
Kitchen supplies $190
Bedding and Linens $0
Basic Utensils $40
Basic Tools $30
Decor $150
Storage solutions $75
Moving Costs $45
*if you know you have someone that will help you move (requires a truck), only add the
expense of supplying dinner/beverages to the people that helped you move*
Condiments i.e Ketchup, mustard, butter, cooking oil, $30
spices and seasonings, peanut butter, jam, salad dressing,
sauces, sugar etc.
TOTAL $649

Total Cost of Moving In $ 649

Note: This is a ONE-TIME initial expense, you will need this money to start out, but will NOT have to pay it
every month, therefore do NOT include it in your final monthly budget
TRANSPORTATION
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 (Complete separate from roommate)

Find an advertisement for a vehicle that you would like to be driving when you move out.
Choose a vehicle between $3000 - $15,000 (autotrader.ca is a good place to start). Copy and
paste the make/model and price of the vehicle you have chosen below and what website you
found this on. It is recommended that your vehicle loans and expenses should not exceed 20%
of your net income.

2013 Mercedes-Benz C-Class C300

$2,900

Assume you have saved enough to make a 10% down payment and must borrow the rest of the
money:

Total Price of Vehicle $2900

Subtract Down Payment (10% of total) $290
Total Loan Amount $2610

Use the following table to find the monthly payments. If the mount of your loan is between the
table amounts you will have to estimate the monthly payment. If you finance for 48 months the
monthly payment will be as follows:

Loan Amount Monthly Payment @ 8%

$2700 $66
$3000 $73
$4000 $97
$5000 $122
$7000 $171
$8000 $195
$10000 $244
$12000 $313
$15000 $365
$18000 $444

Total Monthly Cost of Vehicle Loans $ 61.28

TRANSPORTATION OPERATING COSTS

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What about operating costs? Calculate how many kilometres you might drive in a week when
you move. Include driving to work, shopping, recreation, visiting, etc. Allow on average 100 km
for living within 15 km of work for a week. Multiply this by 4 to get the number of km for
month. Vehicle dealers estimate 18,000 – 22,000 km/year or 1500 - 1833 km/month.

The average cost of an average car is approximately $0.45 per kilometre. This covers fuel,
maintenance, tires, insurance, license, registration and depreciation. To calculate your monthly
driving costs, multiply the number of kilometres driven per month by $0.45. If you have high
insurance costs or an expensive car, you should multiply the kilometres by $0.55.

470 = $211.5
Kilometres driven per month x $0.45 or $0.55 Monthly Operating Cost

Now calculate the total monthly cost:

Monthly Loan Payments $61.28

Monthly Operating Cost $211.5
Total $272.78

Total Transportation Expenses $ 272.78

**Add this total to page 18 on your final monthly budget**

Compare this to the cost of public transportation. A city bus pass is about $75.00 per month.
Provide a reflection on which you would choose and why at this stage of your life - driving a
vehicle or using public transit? Why?

As a student who is just moving into a new apartment, I am faced with the decision of whether
to drive a vehicle or use public transit. The city bus pass costs about $75 per month, which
seems like a more affordable option than owning a car. As a student, I need to budget and save
money, and owning a car can be expensive when you consider the costs of gas, insurance,
parking, and maintenance. Using public transit can be a more convenient option than driving,
especially during rush hour or when parking is scarce. Additionally, my new apartment is
located near public transit stations, which makes it more accessible and convenient for me to
take the bus or train. While I enjoy driving, I recognize that public transit can be a more
environmentally-friendly mode of transportation and allows me to read or listen to music while
commuting

SHOPPING FOR FOOD

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 (Complete separate from roommate)
Create a shopping list that will allow you to prepare 3 meals/day plus snacks for one week.
Research the price of these food items in your local grocery store. Be sure to choose the
quantity you need for only one week. Use the Canada Food Guide on the Government of
Canada Website and/or the Flipp App to assist you in your shopping decisions. Try to be health
conscious in your choices. For one week you should aim to be between $60-$125/week – don’t
forget, you’ve already purchased condiments in your moving-in expenses!
Item Size/Quantity Brand Price
MEAT & ALTERNATIVES
Chicken 2Kg (226g/day) Kirkland Signature 14.86
Protein Bars 20 (2/day) Kirkland Signature 24.86

MILK/DAIRY & ALTERNATIVES

Milk 4L (400ml/day) Beatrice 4.05
Eggs 12 (1/day) No Name 2.50
Butter 454g (30g/day) Becel 2.91

GRAIN PRODUCTS
Bread 675g (76g/day) D'Italiano 3.70
Rice 1.81kg Tilda 9.29
(185g/day)
Cereal 323g (45g/day) Kellogg's Krave 7.11

FRUITS & VEGETABLES

Apples 12 (1/day) 5.54
Bananas 12 (1/day) 2.80

BEVERAGES
Juice 12x355ml Minute Maid 1.91
(1/day)

SNACKS/TREATS
Chocolate 210g Reese’s 6.79
Chips 285g Cheetos 5.49
Total food expenses for one week 91.81
Total food expenses for one month (weekly cost multiplied by 4) 367.24

Total Monthly Food Expenses $ 367.24

**Add this total to page 18 on your final monthly budget**

CLOTHING PURCHASES
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 (Complete separate from roommate)

When calculating the cost of clothing for yourself, consider the type of work you plan to be
doing and how important clothing will be to you. Consider how many of each item of clothing
you will purchase in a year and multiply this by the cost per item – be realistic!
Item Average Cost Each Quantity Total (Avg. Cost x Quantity)
Shirts/Tops (minimum 2) $24.99 (2 pack) 2 $24.99
Pants/Slacks (minimum 2) $22.99 2 $45.98
Coats/Jackets (minimum 1) $57.99 1 $57.99
Swimsuits (minimum 1) $19.99 1 $19.99
Shorts (minimum 1) $13.99 1 $13.99
Suits/Dresses/Formal Wear (minimum $180 1 $180.00
1)
Pyjamas (minimum 1) $20.00 1 $20.00
Underwear (minimum 12) $16.99 (3 pack) 12 $67.96
Socks (minimum 12) $19.99 (12 pack) 12 $19.99
Shoes (minimum 1) $ 55.99 1 $55.99
Active Wear $15.99 2 $31.98
Total for one year $538.86
Divided by 12 for monthly cost $44.91

Total Monthly Cost for Clothing $ 44.91

**Add this total to page 18 on your final monthly budget**

HEALTH CARE AND HYGEINE

One visit to the dentist including check-up, x-rays and teeth cleaning is $200.00. If you are on a monthly
prescription, ex: insulin, don’t forget to add this amount in. Eye exams are approximately $100-$150 per visit
and are required every 2 years. Glasses can cost $250+ per pair and contacts are approximately $150+ for 6
months. For annual expenses, divide by 12 to determine monthly totals. Research the cost of the options
that best suit you.
Yearly Total Monthly Total (divide by 12)
Alberta Health Care Free as of January FREE - - lucky you!
2008
Dental $1000 $83.33
Medications $441 $36.75
Toiletries, make-up, haircuts, dry $198.91 $16.58
cleaning
Optical $156 $13.00
Home cleaning products $850 $70.83
Total Cost Per Month $220.49

Total Monthly Health AND

RECREATION Care & Hygiene Expenses $ 220.49
ENTERTAINMENT
**Add this total to page 18 on your final monthly budget**
(Complete separate from roommate)
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Recreation is a personal component of a budget which reflects personal values. It is important
to budget for all non-work activities. In this section, plan for such things as concerts, athletic or
social clubs, memberships, skiing, travelling, hobbies, eating out, buying a boat or other
recreational equipment, music lessons, movies, videos, parties, etc. Be realistic!

Yearly Cost Monthly Total

Movies $40.50 $3.38
Restaurants, fast-food, coffee $36
Memberships $0 $0
Magazines, newspaper $0 $0
subscriptions or Apps
Travel $810 $67.50
Hobbies $133.64 $11.14
Parties, social activities $60 $5
Pets $0 $0
Sports equipment $0 $0
Other? $0 $0
Other? $0 0$
Total $123.02

Total Monthly Recreation & Entertainment Expenses $ 123.02

**Add this total to page 18 on your final monthly budget**

HOUSEHOLD MAINTENANCE AND FURNISHINGS

Be sure to allow some money for routine maintenance and repairs of your belongings,
approximately $25.00-$40.00 per month for an average household. Note that all maintenance
of the actual house/apartment/condo itself (for example, furnace, hot water tank, roof etc.)
should be covered by the landlord/homeowner.

Total Monthly Cost of Household Maintenance $ 25.00

**Add this total to page 18 on your final monthly budget**

SAVINGS
When you move out, what do you think you will be saving money for? List a few specific things:
Page | 17
1. Investments
2. Businesses
3. House
4. A family

Remember you SHOULD ALWAYS save money for emergencies, such as a car accident, death of a family
member, loss of a job, medical bills, a different lifestyle, etc. You can also save money to invest and/or
prepare for retirement. YOU MUST save 10% of your monthly income, prior to spending any of your
money.

Total Monthly Savings $ 360

**Add this total to page 18 on your final monthly budget**

CHARITIES AND GIFTS

How much would you donate per month to your church, synagogue, mosque and/or other
charities? What about gifts for your family or friends? How much do you spend on birthday gifts
and Christmas presents? Divide a yearly estimate by 12 to find a monthly amount. Research the
cost of the options that best suit you.
What are some examples of charities you would give to or gifts you would have to buy?
I personally would not donate to charity at this stage, once I can become financially free, I will
have much to share with charity. On average, I spend about $25 per gift to my friends but only
if they are close. So lets assume I’d spend that much for 3 friends for each of their birthdays.

Total Monthly Cost of Charities and Gifts $ 6.25

**Add this total to page 18 on your final monthly budget**

OTHER INSURANCE
Tenant and vehicle insurance are included with previous calculations, but Life, Health and
Disability Insurance must be considered ($20-$40 per month). Research the cost of the options
that best suit you.

Total Monthly Cost of Other Insurance $ 29

**Add this total to page 18 on your final monthly budget**

MISCELLANEOUS

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What else do you spend your money on each month? Research the options that best suit you.

Smoking/Vaping/Alcohol $0
Education *Student loans? – Do NOT include in your final $ 0
calculations*
Is there anything we missed? If so, include the monthly cost below.
Other? _________________________________________ $
Other? _________________________________________ $
Other? _________________________________________ $
Total $0

Total Monthly Cost of Miscellaneous $ 0

**Add this total to page 18 on your final monthly budget**

*Students loans do not need to be paid back until 6 months after you graduate. Student loan
payments can vary greatly, depending on how much you owe and how quickly you want to pay
them back. On average student loan payments range $50-$700/Month. Do not include them in
your budget for the purposes of this project, but be AWARE that this may be an additional
expense for you*

Now, let’s see how you did…

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 SUMMARY OF TOTAL MONTHLY EXPENSES
Using the preceding sheets, add up the total monthly costs for you to live the way you would
like:

Housing Page 9 $899.33

Moving-in Page 10 $ -Do NOT include-
Transportation Page 12 $272.78
Food Page 13 $367.24
Clothing Page 14 $44.91
Health Care and Hygiene Page 14 $220.49
Recreation and Entertainment Page 15 $123.02
Household Maintenance and Furnishings Page 15 $25
Savings Page 16 $360
Charities and Gifts Page 16 $6.25
Insurance Page 16 $29
Miscellaneous Page 17 $0
Total Monthly Expenses $2348.02

NET MONTHLY INCOME (Page 3) $2631.55

Subtract TOTAL MONTHLY EXPENSES $2348.02
(Net monthly income minus expenses) DIFFERENCE (+/-) +$283.53

If the difference is positive, you can afford your lifestyle. If negative, you will need to cut back.
Can you afford your lifestyle? YES NO

If no, what can you change in order to have a balanced budget, be specific?

If yes, what will you do with the excess, be specific?

As a student, I've always been frugal with my spending, carefully managing my finances to ensure that I have enough to cover all my expenses. After
doing these calculations and realizing that I'll be able to make more than I need to cover my expenses. Rather than squandering the excess funds on
frivolous purchases, I've decided I’ll use the money to start my own business. I believe that with the right idea and execution, I can turn this extra money
into a profitable venture that will not only help me financially but also provide me with valuable entrepreneurial experience.

Do you think the life you have budgeted for is realistic? Would you want to live this life? Be honest.

Discomfort leads to growth, the longer I stay in a small apartment like this. The bigger I can imagine my house in the future will be. If I keep my expenses
low, but my income high. I’ll have lots for the future. Overall, I believe the lifestyle I made is realistic and possible. I cannot wait to start living like this and
build my future.

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 FINANCIAL CRISIS - NOW WHAT DO I DO?
Financial Crisis
You have forgotten to file your taxes last year and get a letter in the mail saying you owe the
government $650. How are you going to afford to pay for this?

The Alternatives Advantages Disadvantages

Ex. Borrow money from my Ex. My grandma doesn’t charge Ex. My grandma will now expect
grandma interest, she’ll give me the money me to shovel her walk, visit every
Sunday and be at her beck & call.

Solution 1 Advantages Disadvantages

Borrow money from my Flexible repayment terms Strained Relationships
parents Avoiding legal action Lack of Accountability
No interest Dependency

Solution 2 Advantages Disadvantages

Selling Assets Quick access to cash Loss of value
Avoiding penalties and interest Emotional attachment
Peace of mind Transaction costs

Solution 3 Advantages Disadvantages

Use Savings Avoiding the stress and worry Depletion of emergency funds
Protecting their credit score Loss of potential investment
Maintaining good standing with earnings
the government Psychological impact

The solution I would choose: A combination of them all

This is the best solution for me because: for example, instead of losing $650 from my savings.
I can lose $250 from each. Therefore, I can easily repay my parents, still have some money in
my savings and sell only some of my items.

The steps in my plan of action are:

- Setup ads to sell 250$ (more or less) of my assets
- Ask my parents for money (see what they give)
- Get the remaining amount from savings

**Note – you cannot make extra money by doing anything illegal and you can
only use borrowing money from another person as ONE solution. **

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