Final Case-The Middle-Class Dream
You are to do a research case on the following topic using real data. When necessary make assumptions, and state them in your analysis.
Middle-class is well termed in our social culture. “Get a job, get a house, save for the kids’ education, and save for retirement.” The purpose of this exercise is to test the financial viability of the middle-class ideology.
You are to create a budget grouping together common line items that are associated with the middle-class ideology.
A-You are required to estimate the number of years it will take you to find employment and the salary from this job or business if self-employed. You may assume pay raises as appropriate. These amounts should be net of tax for simplicity. You may choose to be single, or to live with a partner and associate expenses based upon your living choice. For the purposes of this assignment, you should assume that you graduated 5 years ago, and have achieved a certain amount of employment stability (or self-employment).
B-You are required to estimate the amount of time it will take you to save for a residential property (ex: house or condo), the amount you will be able to afford, and the monthly payments you estimate you will be able to pay upon buying a property. Theses payments should include house taxes, projected renovations, and property taxes.
C-Derive a best option for buying or leasing a particular car, fitting this within a positive-growth budget.
D-Assume that you are having children. Although some of you may choose not to, for the purposes of the assignment and for understanding the enormity of expenses assumed with parenting please assume that you will be a parent. You will need to budget for their college/trade education as well as their life activities.
E-Lastly you will need to estimate how much you will need to have in order to retire, and figure out what your yearly contributions should be. Age of retirement is up to you.
In addition, common life expenses should be included within your life budget. Your findings should be summarized within a line-item budget, with several worksheets on more complicated tabs. Each line item should be sourced to justify the particular line item.
Your findings should be based upon solid numeric justification, and the equations you have been taught should be demonstrated throughout the case. Since we are dealing with estimates, rough estimates are expected.
The grading of this project will be based upon work, effort, and the concreteness of the conclusions.
Performance
Element
Development of
Ideas
Recommendations/ Conclusions
Organization
Depth
Great work
5-4
Depth and complexity of ideas supported by rich, engaging and/or pertinent details; evidence analysis, reflection and insight
Logical
recommendation
based upon data
collected. Well
expressed
Careful and/or suitable organization
Sub-Topic was explored thoroughly
Good Passable
3 2
Depth of idea development supported by elaborated, relevant details
Logical recommendation based upon data collected. But some omissions or neglect has occurred
Logical organization with some potential lapses
Sub-Topic was explored moderately
Unsatisfactory
1 or 0
Minimal idea development, limited and/or unrelated details
Minimal
recommendation or
conclusions were
drawn
Major Issues
Major Issues
