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Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
Econ final project
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Econ final project

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  1. Econ Final Project<br />Cindy Sakai<br />Ashley Li<br />
  2. Ashley<br />Occupation: Art Director<br />Initial Income: $55,000<br />FICA: $ 3,107.50<br />Post-Tax: $ 45,650<br />Total: $42,542.50<br />Cindy<br />Occupation: Graphic Designer<br />Initial Income: $45,000<br />FICA: $2,542.50<br />Post-Tax: $35,650<br />Total: $33,107.50<br />Income Info<br />
  3. HousingVine Street Lofts<br />101 Second Avenue<br />City: Des Moines, Iowa<br />Zip code: 50309<br />Housing CostsLease terms: 1 year<br />Deposit: $400<br />Living Cost: $7872 annually<br />Renter's Insurance Cost: $207 annually<br />Size: 968 square feet<br />1 story apartment<br />Underground parking garage<br />2 bathrooms<br />2 bedrooms<br />2 baths<br />Housing<br />
  4. Ashley<br />2011 Jeep Wrangler<br />$ 299 per month/ $ 3588 per year<br />Price of gas per gallon : $3.53<br />Estimated 10 gallon usage: $35.30 per week<br />Estimated gas cost per year: $1694.40 per year<br />Car Insurance: $95.67 per month/ $1148.04 per year<br />Total Transportation Cost: $6430.44<br />Cindy<br />2008 Toyota Camry<br />Lease: $199 per month/$1999 due at signing<br />Price of gas per gallon: $3.53<br />Estimated gas 10 gallon usage: $35.30per week<br />Estimated gas cost per year: $1694.40<br />Car Insurance: $77.81 per month/$933.70 per year<br />Total Transportation Cost: $7015.15<br />Transportation<br />
  5. (Calculated on Annual Basis)<br />Electricity: $1800<br />Water: $660<br />Gas: $920<br />Phone, Internet, Cable : monthly fee $81.00, one time charge: $69.00<br />Utilities<br />
  6. Ashley<br />$4,254.25<br />Savings Account at Wells Fargo: $3,254.25<br />.10 (APY)<br />Checking Account at Wells Fargo: $1,000<br />Cindy<br />$3310.75<br />Savings Account at Wells Fargo: $2410.75<br />.10 (APY)<br />Checking Account at Wells Fargo: $900<br />Savings<br />
  7. Ashley<br />Wellmark Blue Basics 5000 Insurance Plan$79.05 per month<br />$948.60 per year<br />Cindy <br />WellmarkBlue Basics 5000 Insurance Plan$79.05 per month<br />$948.60 per year<br />Healthcare<br />
  8. Ashley<br />Clothes: $870<br />Exotic Fishkeeping: $450<br />Movies: $120<br />2 Pet Rats: $125<br />Cindy<br />Clothes: $1,500<br />Movies: $150<br />Gym Membership: $37.95 per month/$455.40 per year<br />Magazine Subscriptions: $82 per year<br />Extracurricular Activities<br />
  9. Ashley<br />Food: $5,000<br />Household Furniture: $400 (split the cost)<br />TV: $400 (Samsung 42" Plasma TV, split the cost)<br />Household Supplies: $250<br />‍Cindy<br />Food: $2,500<br />Household Furniture: $400 (split the cost)<br />TV: $400 (Samsung 42" Plasma TV, split the cost)<br />Household Supplies: $250<br />Food & Other<br />
  10. Taxation<br />Ashley<br /> -Wages, Salaries, Tips: $55,000<br /> -Adjusted Gross Income: $55,000<br /> -Taxable Income: $45,650<br /> -FICA: $3,107.50<br /> - Iowa State Income Tax: $4,356<br /> -Total: $39,948.50<br />http://desmoines1.uhs.wikispaces.net/Taxation<br />
  11. Taxation (cont.)<br />Cindy<br /> -Wages, Salaries, Tips: $45,000<br /> -Adjusted Gross Income: $45,000<br /> -Taxable Income: $35,650<br /> -FICA: $2,542.50<br /> - Iowa State Income Tax: $3,564<br /> -Total: $34,093<br />http://desmoines1.uhs.wikispaces.net/Taxation<br />
  12.   Ashley: Through this project, I have learned about money management and planning. Before, it was a topic always in the back of my mind; I imagined that the majority of people budgeting their money as they went along -- I realized how risky and impractical that would be in reality! I learned how to estimate my future utilities, housing, insurance, and other costs. In doing so, I realized how the necessary expenses such as government and utility taxes comprise of such a large portion of a person’s total expenses. I had also previously not thought of the matter of insurance. Before this assignment, even though I come across advertisements for insurance quite often, I had not realized how many different categories of insurance are truly available! It is not before these necessities are taken out of your income can you allocate money freely to things you have total control over, such as housing, food and recreation. Some aspects were completely new to me; as strange as it sounds, I never really understood the concept of leasing a car prior to this exercise. In my mind, I believed one could only either buy or rent a vehicle. Lastly, and perhaps most importantly, I gained real life experience from filling out a 1040ez bill, which was something I had not previously done before. After this assignment, I feel better prepared to live on my own after college.<br />Analysis/Conclusion<br />
  13. Cindy: In completing this project, I learned many useful skills which will help me greatly as I leave home for college and enter the real world. Perhaps the most important thing I took from this project was how to do my own taxes. I had always heard from others that filling out tax forms was quite difficult, but I was surprised at how simple it was. However, I was shocked to see how much my disposable income dropped from my starting income after subtracting federal income taxes, FICA, and state income taxes. <br />I also learned from my parents how to budget money for food – something I never thought twice about before but will have to start doing when I move out of my college dorm and into an apartment. Food is something that I tend to take for granted since it is provided for me by my parents. Especially money for eating out. But when I had my own income, I had to decide how best to allocate my money and how much to spend on food per year. <br />Before, I had no idea what insurance companies were talking about when they mentioned premiums and deductibles – now I do, and I also know how expensive all three types of insurance are and how important it is to make a place for them in your budget.<br />Perhaps the most enjoyable part of the project, for me personally, was finding our apartment. But at the same time, my partner and I had to weigh the many pros and cons associated with cost – the number of bathrooms, parking, utilities, and location. I learned that the prettiest apartments are generally the most expensive, and the cheapest apartments are generally the ugliest. So as much as I wanted to live in the beautiful apartment building with great amenities and services, we simply could not afford it. We had to balance price with looks and amenities, and ended up finding a nice, moderately–priced apartment in downtown Des Moines. <br />Lastly, I learned that fun really does come last. We could not start on our extracurricular activities until after we had finished budgeting everything else. As a teenager, I tend to focus first on fun and later on more serious matters.<br />Analysis/Conclusion<br />
  14. "Best Jeep Deals: June 2011 Lease and Purchase - U.S. News Rankings and Reviews." Best Car, Truck and SUV Ratings, Pictures, and Reviews from U.S. News - U.S. NewsRankings and Reviews. 01 June 2011. Web. 08 June 2011. <http://usnews.rankingsandreviews.com/cars-trucks/best-car-deals/Jeep-Deals/>.Jeep Wrangler. Jeep. Web. 06 June 2011. <http://jeep.com/en/2011/wrangler>.Geico. Geico. Web. 05 June 2011. <http://www.geico.com/getaquote/auto/recall/>."Rabbit, Hamster, Guinea Pig, and Other Small Pet Supplies | PetSmart." Pet Supplies, Pet Accessories, and Many Pet Products | PetSmart. Web. 08 June 2011. <http://www.petsmart.com/category/index.jsp?categoryId=2767038>."Best Toyota Deals: June 2011 Lease and Purchase - U.S. News Rankings and Reviews." Best Car, Truck and SUV Ratings, Pictures, and Reviews from U.S. News - U.S. NewsRankings and Reviews. 02 June 2011. Web. 03 June 2011. <http://usnews.rankingsandreviews.com/cars-trucks/best-car-deals/Toyota-Deal>AAA Insurance. AAA. Web. 03 June 2011. <http://mn-ia.aaa.com/insurance/683/683.uts>.Odak, Shelia. "The Average Budget for Food for One Person | EHow.com." EHow. Web. 08 June 2011. <http://www.ehow.com/about_5453579_average-budget-food-one-person.html>."Des Moines Snap Fitness Center." 24 Hour Health & Fitness Center. Des Moines Snap Fitness Center. Web. 05 June 2011. <http://www.snapfitness.com/desmoines1>.Wellmark Blue Cross and Blue Shield. Wellmark Blue Cross and Blue Shield. Web. 05 June 2011. <http://www.wellmark.com/>."Vine Street Lofts Apartments." Apartments.com | Find Apartments for Rent, Houses, Condos and Townhomes | Rental Listings. Web. 31 May 2011. <http://www.apartments.com/rent/Des-Moines-IA/Vine-Street-Lofts/142836.4>. <br />"Qwest | Customer Authentication." Qwest® - Official Website: High Speed Internet, DIRECTV®, Phone Service, Verizon Wireless. Web. 08 June 2011. <https://www.qwest.com/MasterWebPortal/freeRange/shop/ShopNC_viewNCBundlesPage?_nfpb=true>.<br />Works Cited<br />

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