Lesson 4

Transportation and Food

In today's activity you will:

Budget for transportation, including car payment, car insurance, maintenance, and gas.

Budget for food.

Analyze wants vs. needs.

Materials needed:

Salary Based Budgeting Worksheet, Steps 13-21

Journal Entry Page 4

Valley Metro fares

Step 13

Public Transportation

If you’re going to use public transportation, and if you’re not going to have a car at all, use the chart below to calculate your transportation costs.

Multiply the full fare times the number of days you will utilize public transportation and enter that number on Step 13 of your Salary Based Budget Worksheet.

Bankrate Auto Calculator - Loan Rates by Credit Score

Step 14

Car Payment

If you’re going to have a car, choose one of the following Car Payments. These amounts are based on 3 year loan at an interest rate of 4.75%.

Enter your choice on Step 14 of your Salary Based Budget Worksheet.

Step 15

Car Insurance

Choose one: Full coverage: $136 per month OR

Minimum coverage $56 per month

These amounts are national averages.

Enter your choice on Step 15 on your Salary Based Budget Worksheet.

Step 16

Car Maintenance

Assume $100 per month . Some months will be $0, but some will be expensive!

Enter $100 on Step 16 of your Salary Based Budget Worksheet.

Step 17

Gas

Estimate how many miles you’ll drive per day and use this chart to find your gas prices (based on $2.82/gallon and 23.6mi/gallon).

Enter your choice on Step 17 of your Salary Based Budget Worksheet.

Step 18

Calculate your total monthly budget for transportation.

Add all of your transportation related expenses together:

Public Transportation + Car Payment + Car Insurance + Car Maintenance + Gas = Cost of Transportation

Enter this number on Step 18 of your Salary Based Budget Worksheet.

Step 19

Choose which meal plan you’re likely to follow for the cost of Groceries.

Enter your choice on Step 19 of your Salary Based Budget Worksheet.

Step 20

Choose which plan you’re likely to follow for the cost of Dining Out.

Enter your choice on Step 20 of your Salary Based Budget Worksheet.

Step 21

Calculate your total monthly budget for food:

Cost of Food = Groceries + Eating Out

Enter the total on Step 21 of your Salary Based Budget Worksheet.

JOURNAL

Fantastic! You have all of your housing expenses established! Here is your journal reflection topic for this lesson:

Discuss what you've learned about wants vs. needs, and how that relates to transportation and food choices.

Here is the Zoom recording for this week's Webinar.

Wants vs Needs.pptx

Jonathon Vasquez, STLC

Thank you, Jonathon Vasquez, for today's talk on "Wants vs. Needs". Here is the slide deck from the presentation. Jonathon is the Executive Director for Operations with the South Texas Literacy Coalition, and has great expertise in Financial Literacy.

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