Full Year Course

6.6 Budgeting for Transportation

Student Activity Packet
UNIT: BUDGETING

Name:

In this lesson, you will learn to:

●​ Identify different options for car ownership and the costs associated with these options
●​ Conduct online research regarding the true cost of car ownership
●​ Make decisions to budget effectively in order to meet your transportation needs

RESOURCES QUESTIONS

Estimated time: 5 mins

Discussion Prompts Estimated time: 5 mins
1 Discuss these questions Daily Question: Write 3 Complete Sentences
with your classmates or 10-17-2024 What is the best thing about our country?
with a partner. The best thing about this country is the few kind people who inhabit it, the people who
make America , America, also, the national parks, filled with serene, natural, beauty, the
nps park service is one of the best things about america, there is these lands in america,
that are so serene, and so blissful, that it makes the ugliest parts of america such as joco
seem so nonexistent.

1.​ Do you have a dream car that you’d love to own and drive?
●​ If so, what is it? Why do you want to own this specific car?
●​ If not, what qualities would you look for in a car?

I have always wanted to have an old vw beetle, as i have always looked the odd, classic look
of the vehicle. Although they are not the best on gas (vws in particular.)

2.​ What costs come with owning a car?​

Gas, and maintenance fees, also auto insurance, tires, license, regristration, and
finance.

Estimated time: 10 mins

2 Understanding the
Basics of 1.​ In your own words, describe why someone may choose to drive to work instead of
Transportation Choice taking public transportation.
Review this infographic In many places, such as joco, public transportation is almost impossible, and not
highlighting the variety accessible, pretty much in america, if you live in a city, you have transportation, and if not,
of transportation options then you do not.
available and why
people may choose
them. Then, answer the
questions.

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 2.​ Think about where you currently live. Would you choose to drive to work or take
public transportation? Explain.
I would choose to drive, as there is no public transportation here in joco, but i would
definitely use public transit if it was something that was accesible.

Estimated time: 10 mins

3 It’s a Money Thing:

Leasing vs. Buying a 1.​ With which option do you own the vehicle at the end of the term?
New Car a.​ Leasing
The majority of b.​ Financing
Americans drive a car to
school and work, so let’s
explore the financial 2.​ Your LEASE payment is typically covering…
implications of leasing a a.​ Insurance on the vehicle + interest
car or buying a car! b.​ The depreciation of the vehicle (loss of value) + interest
Watch the video and c.​ The principal of your loan + interest
learn more about d.​ Only the interest on the loan
leasing vs. buying a car.
Then follow your
teacher's directions to 3.​ Which statement most accurately describes the advantages and disadvantages of
answer the questions leasing a vehicle?
either on your student a.​ Leasing is always cheaper (in both the long and short term), but you do not
activity packet or within own the vehicle at the end of the term.
the EdPuzzle itself. b.​ Leasing a vehicle provides a cheaper monthly payment and less overall
NOTE: EdPuzzle videos maintenance, but typically has additional fees and provides no ownership
shuffle answer choices at the end of the term.
and do not always c.​ Leasing is a bit more expensive each month, but allows you to always drive
match the order a new vehicle.
provided in the lesson d.​ Leasing is typically cheaper per month and allows for cheaper auto
here. insurance, but you do not own the vehicle at the end of the term.

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 Estimated time: 5 mins

4 Buying New Cars vs.

Choosing Used 1.​ Based on the video you watched, would you purchase a new or used car? I would
Vehicles buy a used car, because buying a new car is a really bad “investment” as cars
Let’s pretend you’ve already depreciate 100s of dollars once a new car is off the lot, while a use car has
chosen to buy a car! The always been depreciated, also, i already have a used car.
next question is do you
buy a brand new one or
used? Watch this short
video to learn more
about your options and
then answer the 2.​ What are the advantages and disadvantages of the decision you made?
questions.
Advantages of having a used car is - lower registration fees, lower insurance cost, lower
price tag, fewer fees, better for the enivornment.

Estimated time: 35 mins

5 RESEARCH: Monthly
Cost of Car Ownership
Let’s say that you
decided to buy a used
car! Complete this RESEARCH: Monthly Cost of Car
activity to determine the
monthly amount you’ll Ownership
need to budget for car
ownership. If you’re a young adult, looking for your first car, it can be a challenge to
build a budget without breaking the bank. Beyond the initial price of the
car there are taxes, fees, maintenance, gas, etc. that impact your monthly
cost of car ownership.

Part I: Cost of a Car

The first thing you must do is determine the Make and Model of the car

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 you’d like to purchase. If you are not familiar with cars or don’t already have
something in mind, please refer to The 7 Best Used Cars To Buy for
suggestions.

1.​ What is the Make and Model of the car you’d like?

2010 vw beetle

2.​ Now, use the website Cars Direct to search for your desired car in
your local zip code. The website will give you a list of available
vehicles. When you find one you like, click on it to get in-depth
details about that specific car for sale. In order to calculate your
3.​ +monthly loan amount, please complete the chart below. We’ll
enter all of this information into a calculator in question 3.
Factors
in Your Value for the
Notes
Monthl Calculator
y Price

Vehicle Already provided 3,787

Price:

Down Calculate 20% of Vehicle 3029

Payme Price
nt

Trade-i This is only if you’re -- Leave it blank --

n Value trading in an existing
vehicle

Interest This will vary based on -- Use the figure

Rate your credit score, length auto-generated --
of loan, age of car, etc.

Sales Use this website to find 4.750%

Tax your state’s sales tax in
the State Rate column

Loan The longer your loan term 132, 60 months

Term the lower your monthly
car bill but the higher
your overall interest. The
US average loan term for
a car right now is 72
months. This calculator
lets you select 24, 36, 48,
60, 66, 72, or 84 months.

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 3.​ On Cars Direct, in the upper right hand corner next to the price,
you’ll see an option to Estimate Monthly Loan. Click “Customize”
and enter the values from your chart above into the calculator.
What is your monthly car payment?

Part II: Estimate Your Cost of Insurance

Now that you have a car you need car insurance! Scroll down to the
Average car insurance rates by age and state section of the article and type
in your state in the search bar. Then, find the age closest to your own to
find your annual rate.

4.​ Based on your annual rate, how much would you pay monthly for
car insurance?
202 per month.

Part III: Maintenance and Repairs

Your car will need regular maintenance and sometimes even repairs. Let’s
use Edmunds to determine your monthly cost of maintenance and repairs
for the car you chose in Part I. First, you will need to enter your zip code
and Make, Model, Year, and Style of your car. Then, refer to the
Maintenance and Repairs sections to determine the information below.

5.​ Look at the Maintenance row. How much will you pay on
maintenance over 5 years? Now calculate how much you will pay on
maintenance per month.
612 a year

6.​ Look at the Repairs row. How much will you pay on repairs over 5
years? Now calculate how much you will pay on repairs per month.
3060

Part IV: Gas

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 In order to drive your car it needs gas! Refer to the Fuel section of the
Edmunds site used in Part III to determine the information below.

7.​ Look at the Fuel row. How much will you pay on gas over 5 years
Now calculate how much you will pay on gas per month.
80 dollars a month

Part V: Registration
Having a car means you need to pay for your registration! Every year you
renew your registration and pay a fee to do so. World Population Review’s
infographic shows your yearly registration cost by state. Find your state to
find your fee!

8.​ Based on your state, how much will you have to pay in registration
fees every year? Now calculate how much that comes out to per
month.
46.25, ​
1.62

Part VI: Total Cost of Car Ownership

9.​ What will your total monthly car ownership costs be? Use the table
below to help you calculate.

Car Expenses Cost Per Month

Car Payment

Car Insurance 202

Maintenance & Repairs 612

Gas 60

Registration 46.25

Total 919.25

Part VII: Reflection

10.​ Turn to a partner and compare your total cost of car ownership per
month. Are you comfortable with your car ownership spending each
month? Why or why not?

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 Estimated Time: 10 mins

6 3 Costs of Your Commute

to Work 1.​ What are the different costs of commuting by car to work?
Now that you’ve Gas which is expensive. ​
determined the monthly
cost of car ownership we 2.​ What percentage of workers commute at least one hour each way?
need to explore how
commuting ties into your 8.5 of american workers
transportation costs. Read 3.​ Hypothesize: Why do you think so many people have long commutes?
the article and then
answer the questions. Because in some areas there is nothing, and it is very very rural, so there is no jobs in their
area, and so they have to travel a little to find that.

4.​ How do you think you could save money if you have a long commute to work?

Carpooling, public transit. And optimizing your acr fuel efficiency.

Estimated Time: 5 mins

7 Cost of Commuting
Calculator 1.​ Your friend Anthony just received his first job offer, but he has a 30-minute (20-mile)
When it’s time to create commute to work by car. Use the Cost of Commuting Calculator to determine his
your transportation total monthly cost of driving to work. Assume he works 21 days per month, averages
budget, you’ll want to 25 miles per gallon, and does not pay for parking.
anticipate how much you
commute will cost you. 1228.50​
Use the calculator to
answer the questions. 2.​ Could Anthony save money by using public transportation? Input the cost of public
​ transit in your area for the last question “How much would it cost ROUND-TRIP
Note: This resource is from each day to ride on PRTC?”. If you don’t have public transit options locally, research
Virginia, but can be used the costs in the nearest city that does.
for any area. Yes, he could save like a thousand dollars.

3.​ Anthony has already factored financing, insurance, taxes, and depreciation into his
budget when he decided to get a car. If he excludes those costs on the calculator,
how much should he budget each month for his commute?​
1,300​

Estimated Time: 5 mins

​ 1. Why are monthly payments with leasing a car lower than monthly
payments with financing a car?
​ A. Leased cars are typically older models, so they are cheaper
​ B. You are only paying for the value you use while driving the car
​ C. The gas for a financed car is more expensive than gas for a
leased car
​ D. You do not need to pay for insurance for a leased car

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 ​
8 Exit Ticket 2. When selecting your car payment plan, the _____ your loan term is, the
lower your monthly bill will be. However, your overall interest will be ______.
​ A. longer; higher
​ B. shorter; higher
​ C. longer; lower
​ D. shorter; lower
​ 3. Which of the following costs would increase if you had a longer
commute to work or school?
​ A. Car payments
​ B. Vehicle registration fees
​ C. Fuel and maintenance
​ D. Parking fees
​

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