Cost of Living Game

Middle SchoolFinancial Literacy #3

Objectives

• Connect – Expected expenses– Careers that cover those expenses– Postsecondary education needed for high skill

careers

• Play the Cost of Living game– Learn more about long range financial goals

Benefits of a College Education

• Take Notes– What are the reasons given why to get a college

education?– This video is about 4-year degrees. Do you think a 2-

year degree is also beneficial? Why or why not?

Cost of Living Game

• Matches expenses with possible careers• Watch the sample student play the game– In the upcoming slides

• You can play the game at – http://mdk12.org/assessments/high_school/preparefor

hsa/students/costofliving/costs.html

Sample Student: Cost of Living Game

• Choice– Apartment: $500 (monthly expense)

– House: $900– Mansion: $1,800

• Selects: House $900• Choice– Walk: $0– Bus: $60– Car: $400

• Selects: Car $400• Notice: Expenses Per Month $1,300

Sample Student: Cost of Living Game

• Choice– Cook at Home: $200– Eat at Normal Restaurants: $400– Eat at Very Nice Places: $800

• Selects: Cook at Home $900• Choice– Hiking: $20– Movies: $40– Sports or Concert Tickets: $90

• Selects: Hiking $20• Notice: Expenses Per Month $1,520

Sample Student: Cost of Living Game

• Choice– No Kids: $0– One Kid: $350– Two Kids: $550

• Selects: Two Kids $550• Notice: Expenses Per Month $2,200• Sample Student needs at least– $2,200 dollars to cover her expenses– Notice that she did not select anything too extravagant

• Now the sample student will see what careers will cover her expenses

Sample Student Selects Careers

• Selected Bus Driver Career– Will it cover the expenses?

• No • Expenses Per Month: $2,200• Income Per Month: $1,500

• Selected Computer Programmer– Will it cover the expenses?

• Yes• Expenses Per Month: $2,200• Income Per Month: $2,922

Sample Student Selects Careers

• Selected Architect Career– Will it cover the expenses?

• Yes• Expenses Per Month: $2,200• Income Per Month: $3,215

• Selected Cashier Career– Will it cover the expenses?

• No• Expenses Per Month: $2,200• Income Per Month: $887

Sample Student Selects Careers

• If the sample student had the career – Bus driver or cashier

• She will most likely have to change her lifestyle – Or get a college education

• Notice that the big difference between the expenses and income– Expenses: $2,200, Income: $887

• This would cause many problems for the sample student

Google: Cost of Living Game

What do you want when you are an adult?Select Answers

• Food– 1. Cook at home, 2. Combination, 3. Eat at restaurants

• Housing – 1. Small Apartment, 2. Medium-Sized House, 3. Big house

• Family – 1. No children, 2. One Child, 3. Two or More Children

• Transportation– 1. Bike, 2. Bus, 3. Car

• Technology– 1. No Cable or Internet at Home, 2. Just Cable, 3. Cable & Internet– 1. Home Phone, 2. Cell Phone, 3. Cell Phone with Internet & Text

• Entertainment– 1. Stay at Home, 2. Movies/Fun twice a month, 3. Movies/Fun 3 or more times

Total Scores and Education Needed

• Total your scores– If you score is more than 10, you will most likely need a

postsecondary education to cover those costs

• Students with only a high school diploma– Will have difficulty covering necessities– Have little money for technology, fun, transportation, etc.

Groups Activity: Cost of Living Game

• Students will report to group– Expenses for their desired lifestyle– Careers that cover those expenses

• Groups will– Decide what education is needed for selected careers– Report to class their thoughts on what education is

needed for specific lifestyles