The TwentySomething

Project
CALM 20 LCI
Name:
Roommate:

(optional)

You just turned 20 and it is time for you to move out of your
parents home. No more raiding the endless supply of free food in
the fridge while you relax in freshly washed (thanks mom), fabricsoftened clothes. Gone is the Wi-Fi you dont pay for, the vacuum
youve never used, and the bed you spend entirely too much time
in. Nope, those days are over. Its time to move out.
In this project you will calculate your net income, find a suitable
rental unit, buy a car, food, clothing, etc. The purpose? To help
you learn how to budget and manage financial resources
effectively. You may choose to live with a roommate (1 max) and
share rent, but you must each complete and hand in a separate
booklet with a separate budget. Good luck, and get out!

$ Show me the money $

/3
1. Your occupation:
2. Why did you pick this occupation?

3. Average wage: _________ / hour OR Salary per year:

Definitions
/16
Gross Income
Net Income
Canada
Pension
Employment
Insurance
Income Tax
Union Dues
Bonds
Advance
Earnings
Overtime
3

Earnings
Need
Want
Progressive Tax
Flat Tax
Fixed Expenses
Variable
Expenses
Insurance

Ok, now lets crunch some numbers.

/12
1. Gross Income (monthly)
x
x
=$

=$
/hr
hrs/day
days/month
(GI)

OR if you are on salary

$

Gross Yearly Salary /12

=$

Gross Monthly Salary

Use the charts below to find your Federal tax rates for 2015

15% on the first $44,701 of taxable income,

22% on the next $44,700 of taxable income (on the portion of taxable income over
$44,701 up to $89,401),
26% on the next $49,185 of taxable income (on the portion of taxable income over
$89,401 up to $138,586),
29% of taxable income over $138,586.

Federal tax on taxable income manual calculation chart

If your taxable income is $44,701 or less
Enter your taxable income (GI)

Line 1

Base amount
Line 1 minus line 2 (this amount cannot be negative)

0
=

Federal tax rate

Multiply the amount on line 3 by the tax rate on line 4
Add lines 5 and 6

Line 3
15%

Tax on the amount from line 2

Line 4
Line 5

+0
=

Line 2

Line 6
Line 7

If your taxable income is more than $44,701, but not more than $89,401
Enter your taxable income (GI)

Line 1

Base amount
Line 1 minus line 2 (this amount cannot be negative)

44,701
=

Federal tax rate

Multiply the amount on line 3 by the tax rate on line 4
Add lines 5 and 6

Line 3
22%

Tax on the amount from line 2

Line 2
Line 4
Line 5

+ 6,705
=

Line 6
Line 7

If your taxable income is more than $89,401, but not more than $138,586
Enter your taxable income (GI)

Line 1

Base amount
Line 1 minus line 2 (this amount cannot be negative)

89,401
=

Federal tax rate

Multiply the amount on line 3 by the tax rate on line 4
Add lines 5 and 6

Line 3
26%

Tax on the amount from line 2

Line 2
Line 4
Line 5

+ 16,539
=

Line 6
Line 7

If your taxable income is more than $138,586

Enter your taxable income (GI)

Line 1

Base amount
Line 1 minus line 2 (this amount cannot be negative)

138,586 Line 2
=

Federal tax rate

Multiply the amount on line 3 by the tax rate on line 4

29%
=

Tax on the amount from line 2

Add lines 5 and 6

Line 3
Line 5
+ 29,327

Line 4
Line 6
Line 7

1. Federal Income Tax Deduction (use charts above) = $

2. Provincial Income Tax Deduction = Gross Income x 10%
=$
3. Canada Pension Plan

= Gross Income x 2.3% =

4. Employment Insurance

= Gross Income x 2.5% =

$
5. Union Dues

= Gross Income x 1% = $

________________________________________________________________
6. Pay Cheque Deductions Total (add 1, 2, 3, 4, 5)

Gross Income $

- Pay Cheque Deductions $

= $

=$

(NI)
(Net Income)

To have a roommateor not

/10
Within the boxes below, list the advantages and disadvantages of both living
on your own and having a roommate (2 points for each)

Advantages

Disadvantages

Live
On
My
Own

Live
With
A
Roo
mmate

My decision is to:
I believe this is the best choice because:

What characteristics would be essential in a roommate? Rank your top 5 (1

= highest).
__ Trustworthy
Patient
__ Compatible
Studious

__ Respectful
__ Helpful

__ Cooperative

__ Friendly __

__ Non-smoker

__ Smoker __
8

__ Clean
Stable

__ Thoughtful

__ Quiet

__ Partyer

__

Accommodation Options
/10
(Explain what advantages or disadvantages each accommodation has over
the other two)

Type of
Accommoda
tion

Advantages

Disadvantages

Townhouse
Or
Duplex

Apartment

Single
Detached
House

Decisions, Decisions, Decisions

For each of the following situations, decide which kind of housing would be
best.
1. Retired couple with no children who dont want to cut grass or do
maintenance.
Accommodation: ____________________
2. Middle aged couple with two small children who also desire room for
children and friends who visit.
Accommodation: ____________________
3. A young couple with a small child.
Accommodation: ____________________
4. Young, single person who travels frequently for their job.
Accommodation: ____________________
10

Rental Accommodation

/5

Using the resources available to you, find a place to rent. Resources

include:
Kijiji rentlethbridge.com
wklisting.com
gottarent.com
rentboard.ca rentspot.com
gscrentals.com
canadianresidentialrentals.com rentcanada.com
appartmentscanada.com
bwalk.com apartmentinfo.ca
Now that youve found a place to rent, printscreen (or print out) a copy
of the ad and place it below! (Please include a copy of the link to the
ad as well.)

Place Ad Here

11

Cost of Rental Property:

/month

(A)

Other Rental Expenses

/10

Tenant Insurance
Got stuff? Of course you do. Protect it. When you rent a home or apartment
you must also have tenant insurance in case of fire, theft, flooding or natural
disaster. Your landlord will have insurance on the building, but not on
personal possessions. On average, coverage for $25,000 worth of
possessions comes at a cost of $156/year.
Replacement Coverage
(cost)
$25,000
$30,000
$35,000
$40,000
$45,000

Annual Premiums
$156.00
$228.00
$264.00
$288.00
$312.00

Calculate your monthly cost for insurance:

Annual Premium

12 months =

Cost per month

12

/month

(B)

Utilities
Whether you are renting an apartment or living in a detached house or
duplex, you will likely be responsible for water, gas and power services.

Electricity
Average electricity costs (per month) in Alberta
Type of Accommodation
One bedroom apartment
Two bedroom apartment
Two bedroom townhouse/duplex
Single detached house

Avg. Cost (per month)

$50
$60
$70
$100

Your monthly cost of electricity:

(C)

12

Natural Gas
Average natural gas costs (per month) in Alberta
Type of Accommodation
One bedroom apartment
Two bedroom apartment
Two bedroom townhouse/duplex
Single detached house

Avg. Cost (per month)

$67
$74
$81
$90

Your monthly cost of natural gas:

(D)

Water + Sewer + Waste Removal

Average water + sewer costs (per month) in Alberta

Type of Accommodation
One bedroom apartment
Two bedroom apartment
Two bedroom townhouse/duplex
Single detached house

Avg. Cost (per month)

$60
$65
$75
$90

Your monthly cost of water + sewer:

(E)

TV + Phone + Wireless
1. Pick your mobile phone plan:
Basic - $45
Premium 150 anytime min.
min.
200 MB of data
of data
Unlimited nights
Call display
Voicemail

Intermediate - $55
$75
1000 anytime min.

Executive - $60
Unlimited min.

500 MB of data
Unlimited nights
Call display
Voicemail

Unlimited

250 MB data
Unlimited nights
Call display
Voicemail

1 GB

Unlimited nights
Call display
Voicemail

(F)
Add $25 if you are planning on having
a landline phone

Your monthly cost for a phone is

13

2. Pick your wireless internet plan:

Basic - $55
Intermediate - $60
Premium - $90
10 Mbps
25 Mbps
125 GB
250 GB
500 GB
Wi-Fi modem
Wi-Fi modem

Your monthly cost for internet is

Executive - $80
50 Mbps

100 Mbps
400 GB

Wi-Fi modem

Wi-Fi modem

(G)

3. Pick your television plan:

Basic - $40
23 HD Channels
Channels
41 SD Channels
Channels
HD Box Rental
Rental

Intermediate - $75
56 HD Channels

Premium - $90
56 HD

68 SD Channels

99 SD

HD Box Rental

HD Box

Your monthly cost for television is $

(H)

IF YOU CHOOSE TO OPT OUT OF ANY ONE OF THE ABOVE OPTIONS,

PLEASE PROVIDE A FULL EXPLANATION AS TO WHY:

14

Adding It All Up
______________________________________________________________________________
Rent

Tenant insurance

Electricity

Natural Gas

Water + Sewer + Waste Removal

(A)
(B)
(C)
(D)

(E)

Cell phone

Internet

TV

(F)
(G)
(H)

_____________________________________________________________
HOUSING EXPENSE TOTAL

(T)

*Note: You will be expected to also provide up to 1 months rent for

a damage deposit*

15

Re-evaluate
/5
Using both your Net Income from page 3 and your Housing Expense Total
(T) from page 9, calculate the percentage of your Net Income that is spent
on Housing Expenses.
Housing Expenses:

(T)

(NI)

Net Income:

=
(%)

Total Percentage:

Your percentage should not be higher than 50%. If it is, look back on
your previous choices and determine whether or not there is anywhere you
could save some money. For example: instead of the Intermediate Phone
Plan, choosing the Basic Plan will save you $10/month.
List any changes you could make, including the amount of money saved.
Change

$ Amount

Saved $
Ex: Basic phone plan instead of Intermediate

10.00
_________________________________________

_________________________________________

_________________________________________

_________________________________________

_________________________________________

_________________________________________

_________________________________________

$
__ __ __ __ __

__
Total Monthly Savings

$
16

17

Transportation
/15
Tired of cruising in your moms mini-van? So are your friends. Time to buy
your own car. You have to determine whether buying a new car is worth it or
are you going to be more practical and buy a used car. Even if you already
have a car, too bad the engine just blew up and you need a new one
you must purchase something else.

Place Ad Here

Purchase Price of Vehicle: $

How does this vehicle reflect your values?

Assume that you have saved enough money to make a 10% down payment
and have to borrow the rest of the money.
Total Price of Vehicle

Down Payment (Total Price X 10%)

--------------------------------------------------------------------------------------------------------------------------------

Total Loan Amount (Price Down Payment)

18

To calculate the cost of your payments, do the following. Show your work!

Calculating your Monthly Costs

1) Pick a length of term (how quickly you want to pay off the
vehicle) and set interest rate:
CHOI
CE

TERM
LENGTH
12 months
24 months
36 months
48 months

INTEREST
RATE
4%
6%
8%
12%

2) Multiply your TOTAL LOAN amount by your interest rate, and

then add it to your total car cost.

3) Divide this cost by the number of months in your loan term.

This is your monthly payment.

4) Why did you pick the term length that you did?

Ex: For a $5800 vehicle with a 10% down payment of $580, ones payments
over a 36 month (3 year) loan @8% interest would be $163.58/month.
Length of Loan:
Interest Rate:
Monthly Payment:

months
%
$

/month

(P)

19

Vehicle Operating Costs

What about operating costs? Calculate how many kilometers you might drive
in a week when you move out. Include driving to work, shopping, recreation,
visiting, etc. Allow at least 100km/week for living within 15 km of work.
WHAT DOES MY GAS COST?
1) Multiply km/week by 4 to get the number of km per month.
km/week

km/month

2) Research the average mileage (L/100km) of your chosen vehicle:

L/100km
3) Divide it by 100 to get your litres per km, then multiply it by the
number of kms you drive per month.
L/100km 100, X

km/month =

L/month

4) Multiply this by the current cost of gas (around $1.05/L) to get your gas
cost per month.
L/month

$1.05/L = $

/month

(GAS)

WHAT ABOUT INSURANCE?

Go to http://www.lowestrates.ca/insurance/auto/alberta and get a
car insurance quote. Enter all your information truthfully, as if you were
buying the vehicle today. (If you dont have a license, pretend that you
have gotten your Class 5 GDL license today as well.) REMEMBER: not
reporting a ticket or accident when applying for insurance is fraud!
If you are opting out of collision and/or comprehensive insurance, please
explain WHY:

20

What is the lowest insurance rate you are being offered?

$

/month

(CI)

What factors in your life do you think have contributed to this insurance
rate? (Ex: age, car type, history, etc)

Registration/Maintenance:
In Alberta, you MUST register your vehicle every year. The average cost of
registration is $90, which comes out to $7.50/month.
Maintenance of your vehicle is also going to cost. When factoring in the cost
of regular oil changes (about 3 times a year, $90 each time), fluid and
maintenance supplies, and any occasional replacement parts or tires, youre
looking at (at least) $40-$45/month.
This means you are going to be paying AT LEAST $50/month for your
registration and maintenance.

(RM)

21

Adding It All Up.

(P)

Monthly Car Payment: $

+
Monthly Gas Cost:

(GAS)

+
Monthly Insurance Rate:

(CI)

+
Registration/Maintenance:

50

(RM)

=
----------------------------------------------------------------------------------Total Driving Expenses:
$
(TDE)
Compare this to the cost of public transportation. A city bus pass is approx.
$60.00/month.
According to your income, decide on the method of transportation you will be
using. Car? Bus? Explain your choice:

22

Shopping for Food

/10
The following is a shopping list of food to prepare three meals a day for one
week. Research the price of these food items in your local grocery store. Be
sure to choose the smallest quantities possible to buy. You may replace
unwanted items with something from the same food group.

Item

Size

Brand

$ Price $

Spaghetti
Spaghetti sauce
Potatoes
Eggs
Milk
Bread
Butter/margarine
Orange juice
Chicken
Lean hamburger
Cereal
Sandwich meat
Apples
Bananas
Lettuce
Coffee
Frozen veggies
Rice
Can of tuna
Other:
Other:
Other:

Total Food Expenses for One Week

Total Food Expenses for One Month

(Week X 4)

$
(FE)
23

Clothes, Clothes, Clothes

/5
When calculating the cost of clothing for yourself, consider the occupation
you have chosen and what will be required for that position. Ex: If you plan
on framing houses, you will be required to wear CSA approved steel-toe
boots (which you will have to buy on your own). Or, if you work in retail sales
at Lululemon, one is required to wear only Lulu while at work. Consider how
many of each item of clothing you will purchase in a year and multiply
this by the cost per item. Furthermore, indicate which store you will most
likely purchase each item from and go online to research the cost of each.

Item

Store

Qt $ Cost
y
$

$ Total $

Pants/jeans
Coat/jacket
Shoes/boots
Underwear
Socks
Shorts
Shirts
Suit(s)
Pajamas
Workout gear
Other:
Other:
Other:
Other:
Other:
Other:
Other:

Total for One Year:

Clothing Cost Per Month:

$
/yr
$
(CC)

24

*Note: To find your clothing cost per month (CC), divide your year
total by 12*

25

26

(HC)
Your Choice: Plan

Cost per Month: $

Includes ambulance, physiotherapist, massage therapy, acupuncture, semiprivate and private hospital rooms, home nursing care and more
80% direct bill coverage for eligible prescription drugs ($10,000 maximum per
participant each benefit year)
80% basic dental coverage for standard check-ups, cleanings, fillings,
extractions and root canals ($600 maximum per participant each benefit year
with a three-month waiting period from enrolment date)
50% extensive dental coverage for periodontics and dentures in the second
year to a combined basic and extensive maximum of $1,250 per participant in
the second and each subsequent benefit year (12-month waiting period from
enrolment date)
50% extensive dental for crowns, bridges and implants in the third year to a
combined basic and extensive maximum of $1,250 per participant in the third
and each subsequent benefit year (24-month waiting period from enrolment
date)
50% orthodontics in the third year to a lifetime maximum of $2,000 per person
(24-month waiting period from enrolment date)
Vision care ($250 per participant in any two-year period)
$25,000 in the event of an accidental death of a participant
Emergency travel coverage anywhere in the world outside of Alberta for any
number of trips lasting up to 17 days each
10% discount on additional travel coverage
Includes ambulance, physiotherapist, massage therapy, semi-private and
private hospital rooms, home nursing and more
70% direct bill coverage for eligible prescription drugs ($10,000 maximum per
participant each benefit year)
75% basic dental coverage for standard check-ups, cleanings, fillings,
extractions and root canals ($600 maximum per participant each benefit year
with a three-month waiting period from enrolment date)
50% extensive dental coverage for periodontics and dentures in the second
year to a combined basic and extensive maximum of $1,250 per participant in
the second and each subsequent benefit year (with a 12-month waiting period
from enrolment date
Vision care ($200 per participant in any two-year period)
$20,000 in the event of an accidental death of a participant
Emergency travel coverage anywhere in the world outside of Alberta for any
number of trips lasting up to 17 days each
10% discount on additional travel coverage

Includes ambulance services, psychologist and accidental dental care

70% reimbursement for eligible prescription drugs ($10,000 maximum
per participant each benefit year)
70% basic dental coverage for standard check-ups, cleanings, fillings,
extractions and root canals ($600 maximum per participant each
benefit year with a three-month waiting period from enrolment date)
$15,000 in the event of an accidental death of a participant
Emergency travel coverage anywhere in the world outside of Alberta
for any number of trips lasting up to 10 days each
10% discount on additional travel coverage

Plan C
$80
Plan B
$67
Plan A
$57

Depending upon where you work, health benefits may be available. For this
assignment, they are not, and as such you will need to find health
coverage on your own. Below are three (3) different plans from Alberta
Blue Cross. Take a look at each and select either Plan A, Plan B, or Plan C.
Then, record the monthly cost of your choice at the bottom of the page.

Health Care

/3

27

Hygiene

/5

Item/Service
Haircut/Colour etc.
Shampoo/Conditioner
Toothpaste/ Toothbrush/Floss
Soap/Body wash
Hair products (ex: pastes, hair spray, gels,
etc.)
Makeup/personal grooming (ex: razors)
Toilet paper/tissue
Other:

Monthly Total
$
$
$
$
$
$
$

Total $
(HY)

Recreation and Entertainment

Recreation is a personal item which reflects personal values. It is important
to budget for all non-work activities. In this section, plan for such things as
concerts, memberships (ex: Golds Gym), road trips, hobbies, equipment (ex:
new skis), movie tickets, etc.

Activity/Item

Annual Total

Movies
Restaurants, eating out
Memberships
Travel, road trips
Hobbies
Parties, social activities
Pets
Sports equipment
Games, apps, music
Other:
Other:
Other:
Other:

$
$
$
$
$
$
$
$
$
$
$
$
$

Monthly
Total

$
$
$
$
$
$
$
$
$
$
$
$
$
Total $

(R)
28

29

Recreation contd
/3
Next, take a look at your recreation and entertainment choices. How do
these choices reflect your values? Ex: Are you budgeting more for road
trips/travel because you want to visit family? Do you love going to the
movies? Are you into fitness and value a monthly membership? Explain.

$ Savings $
/10
When you move out, what do you think youll be saving money for? Want to
travel? Paying for college? List at least 5 specific items below:
1.
2.
3.
4.
5.

_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

*Remember, one should always try to save money for emergencies such as a
car accident, death of a family member, loss of a job, etc.
How much money would you like to save per year? $

Total monthly savings

=$

(ideally)

12

(S)

30

31

Household Maintenance + Furnishings

That old flower print couch from your parents basement that smells a little
funky? Love it. Old towels that your grandma is giving you for free? Yes,
please! Youre moving out, and this is no time to be picky. However, even
though these items might be free, living on your own does come with routine
maintenance and repair costs. Light bulbs dont buy themselves.
Avg. Cost of Household Maintenance and Repairs (monthly):
Apartment:
$65.00
Duplex or townhouse:
$80.00
Single detached house: $95.00

(M)

Your monthly cost of maintenance and repairs? $

Charities + Gifts
How much would you spend on gifts throughout the year? Birthdays and
holidays can get expensive. Do you donate money to charity? To your church,
synagogue or mosque? Divide a yearly estimate by 12 to find a monthly
amount.
Estimated yearly cost of gifts and donations:

12
Monthly gifts and donations = $

(GIFTS)

Student Loans
The average student who graduates with a degree owes $26,000 in student
loans. Which means youll be paying about $450 a month for your first 10
years out of school. You MUST include $450 a month student loan payments
if you attended University or College. If your career didnt require postsecondary education then you may omit student loans.
$

(SL)
32

33

THINGS ARE ABOUT TO GET REAL

/10
Time to add things up. Look back at your assignment and transfer each of
the necessary values into the spaces below. Then, add those values together
to determine your Cost of Living each month. Finally, subtract your Cost of
Living total from your Net Income to determine your final Balance. If the
number is positive (above 0), you can afford your lifestyle. If it isnt, you will
need to cut back.

(T)
(TDE)
(FE)
(CC)
(HC)

Housing Expense Total

Page 13

Total Driving Expenses

Page 19

Food

Page 20

Clothing

Page 21

Health Care
Hygiene

Page 22
$
Page 23

Page 23

(HY)
Recreation + Entertainment

(R)
(S)

Savings

Page 24

Maintenance + Furnishings
Gifts

Page 25
Page 25
$

Page 25

(M)

(GIFTS)
Student Loans

(SL)

Monthly Cost of Living

(MCL)
The final calculation
Net Income (pg. 6)

(NI)
- (minus)
Monthly Cost of Living $
(MCL)
= (equals)

Balance

$
34

Do you have a positive balance?

YES

NO
If no, what will you change (see next page) in order to have a positive
balance? If yes, where does the extra go?

If you had a negative balance please indicate WHERE and HOW you would
make changes to your budget so that you do have a positive (or even balanced)
budget at the end of each month. BE SPECIFIC! Identify where and how you
would cut costs! (-10 marks if you do not correct your budget!)
I would fix my budget by:

35

Fixed Balanced Budget:

Housing Expense Total

Total Driving Expenses

Food

Clothing

Health Care

Hygiene

Recreation + Entertainment
Savings

$
$

Maintenance + Furnishings
Gifts

$
$

Student loans

=
Monthly Cost of Living

(T)
(TDE)
(FE)
(CC)
(HC)
(HY)
(R)
(S)
(M)
(GIFTS)
(SL)
(MCL)

The final calculation

Net Income (pg. 6)

(NI)
- (minus)
Monthly Cost of Living $
(MCL)
= (equals)

Balance

36