Financial Literacy - Family Budget

Step 7: Paying for Your Wheels

Can you afford to pay for your dream car(s)? For the sake of this project, you are able to put a $4,000 down payment on your car on top of any trade in/private sale you may have.

Information will go on your Family Budget Presentation AND Google Budget Sheet.

  1. What is your monthly carpayment going to be? Go to http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx.

    Important: You using this loan calculator just to get the current interest rate information.

    1. Go to the “Auto Loan Rates Averages Box” and click on “60 Month” in the “compare auto loan rates” box for either a new or used car (depending on what you are buying).
    2. Put in the zip code of your new home and make sure 60 month new or used is clicked (depending on the type of car you are buying).
    3. Fortunately, you have a great credit rating so you can use the lowest interest rate.
    4. Take a screenshot of the interest rates for your Family Budget Report document.

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  2. Look at the chart located at: http://www.taxadmin.org/fta/rate/sales.pdf and record the sales tax for the state you plan on living in. Please get a screenshot of the sales tax line for your state.
  3. How expensive is this car going to be? Go to http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx. 
  4. The “Loan Amount” is the “TMV what others are paying” price.
  5. Enter the full price of the car, down payment ($4,000), Trade in Amount (If applicable), Interest Rate, Loan Term of 5 years, and sales tax for your state. Click calculate.
  6. Get a screenshot of ”Your Loan Information”, “Loan Summary” and “Yearly Amortization Schedule”.

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  7. Note: Does your partner need a car? Have your partner complete the process to buy another car.
  8. Share the monthly payment information, combine, and record the monthly payment amounts in the space provided on your Family Budge Presentation AND your Google Budget Sheet.

 

 Learning Targets

Review this Rubric

Step 1 Choose a Career
Step 2 Children
Step 3 Getting Hired
Step 4 Taxes and Net Pay
Step 5 Dream House
Step 6 The Family Chariot: New or Used?
Step 7 Paying for Your New Wheels
Step 8 Children: Precious but Pricey!
Step 9 Getting a Pet
Step 10 Tracking Expenses
Step 11 Getting a Grip on Your Spending - Report