Budget Challenge Simulation Prep
Key Components
Use this Google Slide to better prepare for Budget Challenge Simulation. Students will work at their own pace!
Cycle Day vs. Due Date
Cycle Day
Due Date
Based on previous slide, complete the following chart.
Account | Which day of the month will you get your bill or statement? | Which day of the month will your bill be due? (This is NOT how many days later but the actual date) |
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Suburban City Bank | | |
Apartment / Rent | | |
Auto Insurance | | |
Auto Loan (assume the month has 30 days) | | |
Cable | | |
Cell Phone | | |
Credit Card | | |
Energy (aka Utilities) | | |
Renter’s Insurance | | |
Student Loan | | |
What is a grace period?
Which of your accounts does NOT have a grace period?
How long are most of your grace periods?
What is your annual salary?
How often do you get paid?
Explain why you don’t know how much each paycheck will be:
Student Loan Debt...
Read the following article and write six statements on the next slide that explains what you learned and how it might impact your future.
Six Statements on Student Loans
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Employee Benefits
List five common benefits that employers offer. Include a link to your source.
Employee Benefits:
What is a 401(k)?
What is ‘Match %’?
What does your benefits package include?
$_,___.__
What is your starting bank balance?
Overdraft Protection
Overdraft protection (ODP) is a feature offered by banks to keep your checking account from overdrafting and incurring an overdraft fee. An overdraft occurs when you write a check or swipe your debit card but don't have enough money in your checking account to completely fund the transaction.
What Does Overdraft Protection Mean for Your Credit?
Overdraft Protection:
Which one of your accounts is the money for your ODP going to come from?
When would you use ODP?
Non-Sufficient Funds
Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a check or transaction cannot be honored because insufficient funds are available in the account on which the instrument was drawn.
How can you successfully avoid NSF Fees?
Non-Sufficient Funds:
Why do you think the NSF charge is such a high amount compared to other fees?
What might be a challenge of choosing a bank with a “minimum balance”?
What is the NSF charge?
Housing
What is the danger in choosing the 2-bedroom apartment with a roommate even though the rent is cheaper?
Auto Insurance
Did you know Maryland is a mandatory vehicle insurance state? What does this mean for you?
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List three things that surprised you from Maryland MVA website:
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Auto Insurance:
How often will you need to pay your auto-insurance during the simulation?
When does the deductible have to be paid when you are in an accident?
What costs will you have to pay if you are in an accident when you haven’t paid your auto insurance?
Credit Union vs. Bank
Research the similarities and differences between a Credit Union and a Bank.
Credit Union vs. Bank
Credit Union
Bank
Sources:
What is Kelly Blue Book?
Cable vs. High Speed Internet
In today’s society, many people are discontinuing their cable service and just getting high-speed internet. Why do you think this trend is happening?
Cell Phone
Besides the free phone, what is the big difference between the two cell phone plans?
Credit
Credit is borrowed money that you can use to purchase goods and services when you need them. You get credit from a credit grantor, whom you agree to pay back the amount you spent, plus applicable finance charges, at an agreed-upon time.
Why do you need credit?
Credit:
What is the finance rate on your credit card?
This finance rate is actually an “Annual” percent so how much would your daily finance rate be?
How much will typically be charged on your credit card each month?
Energy Bill
What is the difference between level billing and standard-meter billing on your energy bill?
Why might you choose level billing even though it is more expensive?
Renters Insurance
Why is having renters insurance important?
How much is your deductible on your renters insurance?
What is liability coverage on your renters insurance?
What is a deductible?
Congratulations!
You are ready for the Budget Challenge! You may now begin making Vendor Selections.