The Dream Pad Assignment

THE DREAM PAD ASSIGNMENT

You (and your best friend) have just graduated from the university/college/trade program of your choice. You are now 23 and want to move into your own apartment. Your task, with a partner if you wish, is to furnish your apartment with the parameters given below:

You can assume that you have nothing but clothes! The apartment will have a fridge and stove. You and your roommate will have $6000 as start-up capital to buy all of the furniture/items you will need for your apartment (single person will have $5000) Each person will have an after-tax income of $2 500 per month. There are no curtains on the windows, but there are blinds

Please key this information in Excel.  Estimated start-up budget sheet— estimated costs before you move in using the $6000 start-up capital—you’ve budgeted this amount, so spend it!  Estimated monthly budget for living expenses after you move in

Include with the above Excel spreadsheets:  Advertisement for the apartment (from internet)  Advertisement for the car (from internet)  An Appendix for each room showing the details of your purchases

KEEP IN MIND: Start-Up Budget Sheet

 First and last months rent must be included  Hook-up fees for cable and telephone  Be realistic in the cost of items; search online—do not guess!! Ikea, Walmart, Sears are good places to look for start-up items. Do not use E-Bay  Don’t forget basic items like dishes, knives and forks, pots and pans, waste baskets —think of what you have in those rooms at home  Round prices up or down; e.g., $10 not $9.99…  Every expense must be listed in the Appendices

STEPS TO PROJECT COMPLETION 1. Select a partner/apartment roommate 2. Shop for furniture, etc.  create an appendix for each room (put two bedrooms in one appendix, BUT, your room items must not be identical) containing the item, cost of each item and total cost for the room

3. Transfer the totals from the Appendices to the Start-up Budget  total the Start-up Budget numbers 4. Complete the monthly budget sheet  use “notes on monthly budgeting” to assist you The Dream Pad Assignment Page 2 START-UP BUDGET

Start-Up Capital $6 000.00 Furnishing expenditures: Bedrooms $$ Bathroom $$ Kitchen $$ Livingroom/dining room $$ Total furnishing expenditures $$$$$ Other expenditures: First and last month’s rent $$ Cable Hook-up $$ Telephone hook-up $$ Other $$ Total $$ TOTAL START-UP Expenses $$$$$ SURPLUS/DEFICIT $$ **You should end up with a small surplus… MONTHLY BUDGET INCOME Job #1 $$ ($2500 remember?) Job #2 (if partnered) $$ Total Income $$$$ FIXED EXPENSES Savings (5-10% of net income-pay yourself 1st) $$ Monthly rent $$ Monthly Car insurance (for 2) $$ Monthly Car payment (for 2) $$ Cable $$ FLEXIBLE EXPENSES Food ($75/week—per person!) $$ Phone (for 2) $$ Gas (for 2) see note $$ Entertainment $$ Household items (cleaning etc.) $$ Personal Items (shampoo, etc.) $$ Other (savings for trip, riding $$ lessons, etc.—must have 2) Total Monthly Expenses $$

SURPLUS/DEFICIT $$

NOTES ON MONTHLY BUDGETING

This is a budget to run your apartment for one month. Consider all expenses that have to be doubled.

Income: The total income is $2 500 per person. This is after taxes and deductions. If you are living alone, you only need a one-bedroom apartment. Partners must get a two-bedroom apartment. Locate in the Ottawa area. Assume utilities are covered in the price of the rent.

Fixed Expenses:

Savings—must be 5-10% of your income. Remember investments!!

Rent - first and last months rent must be included in the start-up budget. One month’s rent is included in the monthly budget. The Dream Pad Assignment Page 3

Car payment—each person must rent or lease a new car. Your parent’s/guardian will pay a down payment of $2000 for the car as a present for graduating. Search for a car ad of your choice. It should fit your budget. Include the ad in the assignment. Each person owns a car.

Insurance for a modest car like a new Ford Focus will cost you $125 per month (each) at the age of 23.

Other fixed expenses would include things like monthly cable, Internet service and a monthly membership to a gym i.e., any other expenses you might have that are the same price each month.

Flexible Expenses

Transportation—be realistic. A small car like a Focus can cost $30.00 a week (per person) in gasoline for people who drive moderately long distances

Other flexible expenses could include items like your telephone bill (after the original installation fee), gifts, repairs, dry cleaning, that will vary each week. The Dream Pad Assignment Page 4

The Dream Pad Assignment - Marking Scheme

VALUE MARK Thinking/Inquiry – investigating and evaluating Start-up Budget Appendix: required kitchen items 3 (15 marks) Appendix: required bathroom items 3 Appendix: required bedroom items 3 Appendix: required livingroom items 3 Other 3

Monthly Budget  (15 marks) Fixed Expenses 5 Variable Expenses 8 Budget sheets (Start-Up and Monthly) are presented correctly in Excel spreadsheets 2  2 money columns, title, numbers transferred accurately, etc. TOTAL FOR THINKING AND INQUIRY /30

TOTAL PROJECT MARK

To be handed in:  Start-up budget excel spreadsheet  Monthly budget excel spreadsheet  Appendix for each room showing items to be purchased, place of purchase and cost  Attach a screen-capture of the ad for the apartment you are renting and the ad for the car you are buying/leasing