Managing your Personal FinancesApartment Expenses

October 6, 2014

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Do Now

Review Friday’s notes: Please create a list of apartment

amenities. Please create a list of apartment

utilities. Please answer: Is there an easier way to keep track and calculate monthly apartment expenses?

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Standards

4.1 Students will be able to understand

factors associated with the cost of living space choices and furnishings.

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Goals of the day:

• Students will be able to understand the typical expenses associated with an apartment.

• Students will be able to complete simple tasks within Excel.

Yesterday…

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You used the www.apartments.com website to research four apartments.

You chose one of them based on criteria important to you.

Some of the more important criteria were probably location, price, layout, and amenities.

Monthly rent…

Average cost of a one bedroom apartment in South Jersey $800 - $1200

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Landlord’s Insurance

Landlord carries business insurance that covers: any structural damage due to

vandalism, fire and certain inclement weather

personal liability for accidents occurring outside of the units.

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Renter’s Insurance

Renter should carry insurance that covers: loss of personal property due to theft,

fire or other covered loss personal liability for accidents

occurring within their unit

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Renter’s Insurance

Determine if insurance is actual cost or replacement cost Actual cost will be current market

value (depreciated cost) Replacement cost is price paid when

purchased (typically higher)

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Renter’s Insurance

Typical Policy provides $30,000 property coverage $100,000 personal liability coverage

for about $12 per month Might require additional insurance for

certain breed of pets

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Renter’s Insurance Tips…

Keep a list of possessions and their receipts to prove what was stolen or destroyed

Videotape your possessions Keep list, receipts and videotape in

a safe place outside your apartment

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Electric

Lights, appliances, TV, computer, etc Average $60 per month

Air Conditioning – central or window Bill will depend on outside temperature

and settings Possibly cooking, hot water, heat

Bill will depend on usage and outside temperature and settings

Could be very expensive

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Gas

Cooking, hot water, heat Bill will depend on usage and outside

temperature and settings Could be very expensive

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Cable

Basic Cable Premium Channels

HBO, Showtime, Sports Package (RedZone, Soccer)

High Definition DVR Broadband Internet Router/WiFi

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Telephone

Landline Going the way of the dinosaurs

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Cell Phone/Tablets

Can’t live without them Might need WiFi

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Excel Mini-lesson

Open Excel

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Average Apartment Monthly Expenses

Bill Monthly AnnuallyRent $900 $10,800 Insurance $12 $144 Electric $60 $720 Gas $40 $480 Cable $125 $1,500 Cell Phone $75 $900

$1,212 $14,544

Let’s add it up…

Rent - $900 Insurance - $12 Electric - $60 Gas - $40 Cable - $125 Cell Phone - $75

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Using the Excel spreadsheet

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Formulas in Excel

Total =sum(A1:F1) Multiply = A1*B1 Divide = A1/B1

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Advantages of Using Excel

Accurate calculations Copy and paste features Better organization of information Performs “What if Analysis” example: What will my salary have to be in

order for my rent to be within the 30% rule?

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Please complete Excel activity

You will be guided through using formulas in Excel.

Calculate yearly expenses by using monthly expenses * 12.

Calculate both monthly and yearly income(salary) amounts needed.

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Exit Ticket

Please provide 3 ways that Excel either simplifies or allows you to more accurately record and predict future apartment expenses….

How might someone who is usually disorganized with their bills benefit

from using an Excel spreadsheet?

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