Major Expenditures Note Taking Guide Answer Key
1 Page 1 Major Expenditures Note Taking Guide L1: Major Expenditures Answer Key Housing Renting a Home Two factors that can influence the price of housing are: Answers will vary but may include: 1. Amenities The person who owns the property: Landlord The cost of using someone elses property: Rent The person who rents the property: Tenant Housing rental expenses to include in a spending plan are: Rent Utilities Household furnishings Renters Insurance Communications (internet, television, phone) When comparing properties, three questions to ask a landlord about direct costs include: 1. How much is rent, when is it due, what is the length of the rental contract? Who is responsible for each utility bill? What amenities are available (furniture, pool, laundry, etc.) and are there additional charges for usage? 2 Page 2 When comparing properties, why should you learn about policies?
It is important to know what constitutes a violation in the rental agreement and eviction terms so as not to lose the security deposit and/or get evicted. What are common rental application questions?
Who will be living at the property? What is your income; where do you work?
Where have you rented in the past? Who are your references? May we check your credit history? Why is it important to read a rental agreement closely? It is a legal contract between landlord and tenant. Tenant is responsible for following the contract. Describe the initial expenses that may be required when renting a property.
First and last month's rent Depending on terms of rental agreement, these funds (security deposit) may be refunded when tenant moves out Housing Purchasing a Home A real estate agent is: finding a property that addresses their needs and wants Licensed individual representing a buyer or seller in a contractual transaction to purchase real property They help buyers. Finding a property that fits their spending plan working through the contract and closing process 3 Page 3 credit history A mortgage payment typically includes: cost of the home income and expense statenebt What types of information does a lender evaluate? Income interest funds to pay property taxes net worth funds to pay homeowners insurance Expenses to include in your spending plan when making a purchase are: mortgage payment property taxes utilities household furnishings special assessments homeowners association dues maintenance and repairs communication (internet, television, phone) What is a down payment? Portion of the purchase price not borrowed Typically 5 20% of the purchase price Mortgage insurance will be required to protect the lender if the borrower provides less than a 20% down payment What are closing costs? Fees and charges associated with the purchase of a property Typically 1 4% of the purchase price What is equity? Monetary value of a property minus the amount owed on the property 4 Page 4 What are pros and cons of public transportation?
Cornell Note Taking Guide
Transportation Pros Cons Why is it important to do advanced research before purchasing an automobile? Does not require extra cost of ownership expenses availability depends on the location to know what type of vehicle you want and how much you should expect to pay for that vehicle. Typically cost effective may not be convenient or require more travel time Transportation expenses to include in a spending plan are: automobile payment fuel maintenance and repairs license and registration (yearly fee) insurance parking (in some locations) Why is it important to consider depreciation when purchasing a vehicle? The value of most vehicles depreciates (lowers) over time One of the biggest costs of ownership Make sure, if credit is used, you don t owe more than you own 5 Page 5 What are five features you would consider when purchasing an automobile? Answers will vary, but may include: Cost Size Usage Gas mileage Safety ratings, reliability, environmental impact, depreciation, upgraded features How does shopping around for an automobile loan benefit you? Loan terms may vary significantly between lenders.
Why is it important to have a positive credit history when using credit to purchase an automobile? Most lenders will check an individual s credit history to determine if a loan will be granted and the terms. Why is it important to have down payment when purchasing an automobile?
Not all vehicle purchases require a down payment. However, if this occurs, individuals will pay more over the lifetime of the loan and are at greater risk of owing more than the vehicle is worth. Describe what a consumer should be aware of when leasing a vehicle. Leasing is renting a product while the ownership remains with the lease grantor. You pay a specified amount of money (usually monthly for a specific time. Once lease expires, vehicle is returned to the lease grantor.
Look for hidden costs in the contract. 6 Page 6 Food What are the primary sources of food? Scratch convenience readyto eat fast food/ fast casual full service Why is food prepared at home typically less expensive than food away from home? Food prepared at home does not include the cost of preparation, employees, and restaurant. What are three ways to eat meals that are well balanced and high in nutrition?
Answers will vary Describe how each consideration can impact an individuals food choices: Time: eating out may be quicker. But, individuals should factor in transportation time as well. Skills:individuals may not have food preparation skills. However, these skills can be gained from classes, peers, watching online tutorials, etc. Dietary Needs: preparing food at home allows control over what is in food Preferences: individuals may prefer the taste or quality of meals made at home, or at restaurants Facilities and equipment: are required to cook at home.
Major Expenditures Note Taking Guide Housing
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