PERSONAL FINANCE PROJECT

PERSONAL FINANCE PROJECT: HONORS ECONOMICS

THE SCENARIO: THE YEAR IS 2020 AND YOU ARE AN INDEPENDENT 23 YEAR OLD NO LONGER LIVING UNDER YOUR PARENTS' ROOF.

YOUR TASK: TO CREATE A PERSONAL FINANCE PLAN TO MANAGE YOUR WEALTH.

DIRECTIONS: FOR EACH OF THE TASKS BELOW, YOU WILL SCOOP THE WEBSITES TO YOUR SCOOP.IT PAGE. IN YOUR INSIGHT BOX, ANSWER THE QUESTIONS THAT FOLLOW.

1. BANKING (click here for list of banks in Georgia) (click here for credit unions in Georgia)

-Which bank (or credit union) do you plan to use to help you manage your finances? What kinds of accounts will you set up? Does the bank charge you fees? Why did you choose this bank? If you needed a car loan, what kinds of programs does your bank offer? What other loans do they offer? What are current interest rates on loans? Do they offer investment services? Could you open a Roth IRA with this bank?

2. AUTOMOBILE INSURANCE (click this link for an auto insurance estimate)

-Which company do you plan to purchase automobile insurance from after high school? What is the approximate cost of premiums for each of the following: liability, comprehensive/collision, medical, uninsured motorist, and the total cost? Define these terms: premium, deductible.

3. HEALTH INSURANCE (click this link for health insurance information) (assume you have an annual income of $40,000)

-What company did you choose? What kind of policy (bronze, silver, gold, platinum) did you choose? What would be your monthly premiums for health insurance? What would be the deductible? What would be your maximum out of pocket?

4. CREDIT CARD (click here for information on credit cards)

-Which credit card would you choose to use? Why did you choose that card (include specific information about fees, rewards, interest rates). Would you pay it off every month or pay the minimum monthly payment?

5. INVESTMENTS (click here for information on Roth IRAs) (click here for info on Schwab custodial IRA)

-Which company would you choose for your Roth IRA? Why did you choose that company? Research mutual funds and/or ETFs and identify 2 funds you would invest in your Roth IRA. (click here for info on mutual funds) For each fund, describe what kinds of companies the fund invests in, identify the fund's expense ratio, and describe the funds long-term historical performance.

PART 2: REALITY CHECK

6. Scoop the link below to your scoop.it page. Take the "Reality Check" quiz. In your insight box, describe your minimum hourly and weekly wages needed to have the lifestyle you want, and what kinds of jobs pay those kinds of wages. TAKE THE QUIZ AS IF YOU ARE A 23 YEAR OLD ON YOUR OWN.

JUMP $TART REALITY CHECK

PART 3: TOTAL TAX BURDEN

7. Scoop the link below to your scoop.it page. Assume your GROSS WAGES and FEDERAL ADJUSTED GROSS INCOME is $40,000. Using your best estimates, calculate your ESTIMATED TOTAL TAX LIABILITY and PERCENTAGE OF YOUR INCOME YOU'D PAY IN TAXES and explain what it would be in your insight box.

TOTAL TAX BURDEN CALCULATOR

B