Money Part IV

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Money Part IV

• Spending Money

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Money Part IV Spending More Money
Slide 2

• Section 2 Spending Money
• On what do you spend your money?
• Travel
• Transportation

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Money Part IV Spending More Money
Slide 3

• Section 2 Travel Transportation
• What costs are associated with traveling?
• Mode of Transport
• Car
• Plane
• Train
• Accommodations
• Hotels
• Tents
• Hostels
• Activities
• Theme Park
• Event Tickets

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Money Part IV Spending More Money
Slide 4

• Section 2 Mode of Transport
• Which method of transportation is cheapest?
• It depends
• Car
• Low speed
• Can go anywhere at anytime
• Plane
• High speed
• Limited destinations schedules
• Train
• Moderate speed
• Limited destinations schedules

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Money Part IV Spending More Money
Slide 5

• Section 2 Mode of Transport Cars
• How much does driving cost?
• IRS reimburses business travelers at a rate of 55
  cents / mile
• This is approximately a combination of
• Gasoline
• 20 mpg _at_ 2.19/gallon
• 11 cents per mile
• Maintenance
• 1,500 / 10,000 miles
• 15 cents per mile
• Insurance
• 12 months _at_ 2,000 for 10,000 miles
• 20 cents per mile

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Money Part IV Spending More Money
Slide 6

• Section 2 Mode of Transport Planes
• How much does flying cost?
• It is nearly impossible to provide a formula to
  show the cost of flying
• Airlines hide the cost structure of ticketing
• Approximates
• PHL to BWI Roundtrip 238
• PHL to STL Roundtrip 178
• PHL to LAX Roundtrip 309
• PHL to KIX (Osaka, Japan) Roundtrip 2,685

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Money Part IV Spending More Money
Slide 7

• Section 2 Mode of Transport Train
• How much does traveling by train cost?
• It is nearly impossible to provide a formula to
  show the cost of train
• Train companies also hide the cost structure of
  ticketing
• Approximates
• PHL to BWI Roundtrip 80
• PHL to STL Roundtrip 254
• PHL to LAX Roundtrip 436
• PHL to KIX (Osaka, Japan) Roundtrip impossible

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Money Part IV Spending More Money
Slide 8

• Section 2 Mode of Transport

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Money Part IV Spending More Money
Slide 9

• Section 2 Owning a car
• What are the options for car ownership?
• (in order from financially worst to best)
• Rent a car
• Lease a car
• Buy a car using a payment plan
• Buy a car outright (no payments)

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Money Part IV Spending More Money
Slide 10

• Section 2 Owning a car - Renting
• How much does it cost to rent a car?
• Budget Rent-a-car 20-100 a day
• 600 - 3,000 a month
• Must return car at end of rental
• Example
• Need a 20,000 car for 10 Years
• 20/day, 30days/month, 12months/year for 10 years
• Total Cost 72,000 (no car at end of 10 years)

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Money Part IV Spending More Money
Slide 11

• Section 2 Owning a car - Leasing
• How much does it cost to lease a car?
• http//www.leasecompare.com
• Downpayment 0 - 3,000
• Typically 200 - 400 a month for 36 months
• Are supposed to return car at end of lease
• or purchase the car
• Example
• Need a 20,000 car for 10 Years
• 1,500 down each time / 200 month
• Total Cost 30,000 (no car at end of 10 years)

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Money Part IV Spending More Money
Slide 12

• Section 2 Owning a car Buying (with a payment
  plan)
• How much does it cost to purchase a car with a
  payment plan?
• Downpayment 0 - 3,000
• Typically 250 - 450 a month for 60 months
• Keep the car at the end of the payments
• Example
• Need a 20,000 car for 10 Years
• 2,000 down / 340 month for 60 months
• Total Cost 22,400 (have a car at end of 10
  years)

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Money Part IV Spending More Money
Slide 13

• Section 2 Owning a car Buying outright
• How much does it cost to purchase a car without
  a payment plan?
• Downpayment all of it
• Keep the car forever
• Example
• Need a 20,000 car for 10 Years
• 20,000 down / 0 month
• Total Cost 20,000 (have a car at end of 10
  years)

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Money Part IV Spending More Money
Slide 14

• Section 2 Owning a car Cost Comparison