1. Econ Final Project Cindy Sakai Ashley Li

2. Ashley Occupation: Art Director Initial Income: $55,000 FICA: $ 3,107.50 Post-Tax: $ 45,650 Total: $42,542.50 Cindy Occupation: Graphic Designer Initial Income: $45,000 FICA: $2,542.50 Post-Tax: $35,650 Total: $33,107.50 Income Info

3. HousingVine Street Lofts 101 Second Avenue City: Des Moines, Iowa Zip code: 50309 Housing CostsLease terms: 1 year Deposit: $400 Living Cost: $7872 annually Renter's Insurance Cost: $207 annually Size: 968 square feet 1 story apartment Underground parking garage 2 bathrooms 2 bedrooms 2 baths Housing

4. Ashley 2011 Jeep Wrangler $ 299 per month/ $ 3588 per year Price of gas per gallon : $3.53 Estimated 10 gallon usage: $35.30 per week Estimated gas cost per year: $1694.40 per year Car Insurance: $95.67 per month/ $1148.04 per year Total Transportation Cost: $6430.44 Cindy 2008 Toyota Camry Lease: $199 per month/$1999 due at signing Price of gas per gallon: $3.53 Estimated gas 10 gallon usage: $35.30per week Estimated gas cost per year: $1694.40 Car Insurance: $77.81 per month/$933.70 per year Total Transportation Cost: $7015.15 Transportation

5. (Calculated on Annual Basis) Electricity: $1800 Water: $660 Gas: $920 Phone, Internet, Cable : monthly fee $81.00, one time charge: $69.00 Utilities

6. Ashley $4,254.25 Savings Account at Wells Fargo: $3,254.25 .10 (APY) Checking Account at Wells Fargo: $1,000 Savings

7. Ashley Wellmark Blue Basics 5000 Insurance Plan$79.05 per month $948.60 per year Cindy WellmarkBlue Basics 5000 Insurance Plan$79.05 per month $948.60 per year Healthcare

8. Ashley Clothes: $870 Exotic Fishkeeping: $450 Movies: $120 2 Pet Rats: $125 Cindy Clothes: $1,500 Movies: $150 Gym Membership: $37.95 per month/$455.40 per year Magazine Subscriptions: $82 per year Extracurricular Activities

9. Ashley Food: $5,000 Household Furniture: $400 (split the cost) TV: $400 (Samsung 42" Plasma TV, split the cost) Household Supplies: $250 ‍Cindy Food: $2,500 Household Furniture: $400 (split the cost) TV: $400 (Samsung 42" Plasma TV, split the cost) Household Supplies: $250 Food & Other

10. Taxation Ashley -Wages, Salaries, Tips: $55,000 -Adjusted Gross Income: $55,000 -Taxable Income: $45,650 -FICA: $3,107.50 - Iowa State Income Tax: $4,356 -Total: $39,948.50 http://desmoines1.uhs.wikispaces.net/Taxation

11. Taxation (cont.) Cindy -Wages, Salaries, Tips: $45,000 -Adjusted Gross Income: $45,000 -Taxable Income: $35,650 -FICA: $2,542.50 - Iowa State Income Tax: $3,564 -Total: $34,093 http://desmoines1.uhs.wikispaces.net/Taxation

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. Analysis/Conclusion

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. 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. 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. 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. 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. Analysis/Conclusion

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