THEME IV: Consumer Skills

Housing

What are expenses related to becoming independent and living on my own? When furnishing an apartment, what do I want and can I afford "new" everything? How will I ever save enough to qualify for a down payment and a mortgage? Why can't I have a house like my parents have as soon as I graduate? Does my credit rating have anything to do with my ability to get a mortgage?

Most teens fail to recognize all the goods and services necessary to live on one's own. Having never paid the monthly expenses associated with maintaining a household, they are generally unprepared for setting up housekeeping.

Housing Lessons Overview
The lessons in this section begin with the furnishing of dorm rooms and apartments plus all the associated costs. Students learn the vocabulary necessary to interpret and evaluate a lease or rental agreement through specific examples. Following the rental process, students will use their initial entry level income to find out what houses they can afford on their salary. The advantages and disadvantages of home ownership and the steps involved with purchasing a home are examined.

Transportation

How much can I afford to pay for a car? Is the car the only expense I have? What factors will determine how much I have to pay for insurance? How do I get the best deal on car insurance? What are the costs associated with maintenance and repair? What would a typical week's gasoline bill be like? Will I need a part-time job to have this car?

For most teens, the first major purchase they make that might require borrowing is "the car." Affordability for the teen is sometimes not one of the criteria many families use when making this purchase which gives the teen an unrealistic sense of expenses. Due to lack of planning and goal setting, many times costly trade-offs have to be made involving a job to support the car versus study time, extra-curricular activities, and a social life. On the other hand, many students are isolated if they have no transportation due to lack of alternative transportation where they live.

Transportation Lessons Overview
Many students already have their own car. This unit begins by looking at what expenses are involved in owning and/or operating a vehicle. Goals will be re-examined and criteria identified based on the student's own values. Issues discussed will look at affordability, financing, insurance, gasoline, maintenance and repair. Using Kelly's Blue Book, students will research cars that they would like. Also included are lessons on comparison shopping for car loans and insurance.

• THEME I
• THEME II
• THEME III
• THEME V