CM4: Budgetting/ Finance

“Deals on Wheels!” - Car Loan Project

Brief Project Overview
In this project students will learn about budgets, car purchasing, and using credit. They will calculate monthly car payments including tax and license fees, vehicle trade-in and down payments. While this lesson is intended to educate the consumer, and thus all students, there are many career opportunities related to the field of finance. Perhaps this will get students thinking about one.

Appropriate Subjects and Grade Levels
For all high school students in the following classes:
• Economics• Accounting• Business Concepts• Business Law• Business Math• Financial Records

Length of Project
One 55-minute class period; Handout #3 could be continued as homework assignment
Optional— one additional 55-minute class period for job description & role-play assignment
Optional— one additional 55-minute class period for guest speaker, job description & role play
NOTE: The length of this project is an estimated minimum time needed for completion that may easily be expanded upon. The length of time will naturally increase as the project is expanded upon by the teacher as it is adapted to meet classroom and curriculum goals.

Teacher’s Materials Provided
Deals on Wheels Lesson Plan
Outcomes/Products Assessments and Standards Matrix - identifies lesson outcomes, standards addressed, and ways to measure learning; brief descriptions of corresponding student activities.
Calculating Amount to Be Financed/Borrowed - may be used as a blank overhead to demonstrate completion of student worksheet.
Calculating Amount to Be Financed/Borrowed Sample Teacher Overhead - overhead master with sample calculation already filled in.
Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan - may be used as a blank overhead to demonstrate completion of student worksheet.
Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan Answer Key
Budget & Pie Chart Rubric - clarify budget & Pie Chart assignment requirements and assessment criteria.
Budget Essay Rubric - clarify Budget Essay assignment requirements and assessment criteria.
Optional additional activity materials listed below.

Student Materials Provided
Calculating Amount to Be Financed/Borrowed Student Copy - worksheet for calculating car loan amounts
Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan - worksheet for calculating monthly car payments
Creating a Budget - assignment instructions
Budget and Pie Chart Rubric - clarify Budget & Pie Chart assignment requirements
Budget Essay Rubric - clarify Budget Essay assignment requirements

Optional follow-up activity materials listed below
Classroom Facilities Needed
Computer/printer for students
Internet access
Word, Excel, Publisher (optional)
Overhead projector
Student Supplies Needed
Calculators
Storage Media: disks, CD's, zip disks, USB storage

Teacher’s Preparation Checklist
Review Outcomes/Products and Assessments Matrix, Lesson Plan , student materials and perhaps the recommended background materials.
Practice following the student’s exercise directions

Make one copy of each handout per student:
Calculating Amount to be Financed/Borrowed Student Copy
Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan
Creating a Budget
Budget and Pie Chart Rubric
Budget Essay Rubric
Gather calculators and disks
Recommended Background Materials
No-Brainers on Buying a New Car (1998) video
The Insiders Guide to Buying a New or Used Car book by Burke Leon, Stephanie Leon
Car Secrets Revealed book by Corey Rudl

Optional: Follow-up Activities
Financing Practice Problems Student Copy, Financing Practice Problems Answer Key
Loan Agent Interview
Create a Job Description from the interview results, Job Description for a Career in Finance Rubric
Role play the process of obtaining a loan depicting current interest rates, what rates students could qualify for, and how a person could qualify for the lowest rate possible (using information obtained from the interview)
Invite a guest speaker from a car dealership’s finance department