MOVING OUT OF HOME

A budget is a simple financial plan that itemises (lists) individual or family spending and helps accomplish goals. BUDGET SCENARIO: You have completed Yr 12 and just turned 18. While a student you have saved $600 by doing part time work. Your hometown is over 100kms away so you will need to find accommodation you can afford on your budget and that is close to the city or public transport. To get to work, your transport options are to walk, ride a bicycle or use public transport. At this stage you do not own or have access to a car. Complete the following tasks to help you plan your budget. Knowledge & Applying Choose an Unfurnished House/Unit to rent Using the rent roll from “Saturday Cairns Post” (OR YOUR LOCAL NEWSPAPER), choose an unfurnished house or flat to rent, you may share the costs with one or two others. Copy out or attach the full advertisement in the box below. Discuss 3 advantages or disadvantages of sharing accommodation. Provide 3 questions that you think are important to ask of a potential flatmate. Items/Expenses before you move in Decide on which items you need for your unfurnished house or unit. Consider which items are better new or not essential. You may not need to buy everything as some items you may bring with you. If you are sharing accommodation then calculate your share of the costs. Estimate (new or used) costs using newspaper advertisements or quotes from retailers. Provide details of 5 items: the brand/model via advertisements, websites or screenshots. ITEM / EXPENSE TOTAL COST $ YOUR COST $ Bond ( 4 weeks rent) 2 weeks advance rent (1) Sub Total $ Major items - New, Used, Not essential YOUR COST $ Fridge Washing Machine Dryer Microwave Dining table and chairs Lounge suite Coffee table T.V/Flat screen Video/DVD player T.V Cabinet Bedroom suite Computer/Laptop Desk/Chair Patio setting/B.B.Q Other (2) Sub Total $ Household items - New, Used Not essential YOUR COST $ Cutlery/Cooking utensils Dinner set/plates/bowls Cups/glasses Saucepans Linen (Sheets/Blankets/Doona/Pillows) Towels/Tea towels/Tablecloths Electric jug Iron/Ironing board Toaster Broom/Mop/Bucket Other (3) Sub Total $ Total (1)+(2)+(3) $ Borrowing Money Remember you do have $600 saved up from part time work. You need to borrow money to cover all the costs involved in moving out (Task 2). Decide whether or not you are going to reduce your borrowing by $600. Explain your reasoning. Total amount being borrowed is $_______________. My reasons for this amount are ________________________________________ __________________________________________________________________ Below is a “monthly loan repayment” table to help you calculate the monthly loan repayments, including interest. Calculate your repayments at 12% per annum over a 5 year period. Monthly repayment table per $1000 borrowed Interest rate Year 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 1 $86.07 $86.53 $86.99 $87.45 $87.92 $88.38 $88.85 $89.32 $89.79 $90.26 2 $44.32 $44.77 $45.23 $45.68 $46.14 $46.61 $47.07 $47.54 $48.01 $48.49 3 $30.42 $30.88 $31.34 $31.80 $32.27 $32.74 $33.21 $33.69 $34.18 $34.67 4 $23.49 $23.95 $24.41 $24.89 $25.36 $25.85 $26.33 $26.83 $27.33 $27.83 5 $19.33 $19.80 $20.28 $20.76 $21.25 $21.74 $22.24 $22.75 $23.27 $23.79 6 $16.57 $17.05 $17.53 $18.03 $18.53 $19.03 $19.55 $20.07 $20.61 $21.15 7 $14.61 $15.09 $15.59 $16.09 $16.60 $17.12 $17.65 $18.19 $18.74 $19.30 Monthly Loan repayment = (total amount borrowed ÷1000 x table amount) = ________________________ = ________________________ Yearly loan repayment = ________________________ = __________________________ Weekly loan repayment = __________________________ = ___________________________ Weekly Food Expense Time to consider what items you need for a week. A 380g jar of vegemite might last you 6 or 8 weeks, while some items are cheaper to buy in bulk. This is why you calculate the average weekly cost. Research these costs at your local supermarket, in bargain sheets, online or ask an adult to help you estimate. Provide details of 5 items: brand/quantity via advertisements, websites or screenshots. Items – add to this list Quantity Cost How many weeks will it last Average weekly cost Basic Foods - $ $ bread 1 loaf $2.50 1/2 $5.00 milk 2 L $3.20 2 $1.60 butter/Margarine spreads (jam/vegemite)