Table of Contents

Part 1: Profession Comparison.1

Profession A: Building Cleaner Worker..1

Profession B: Industrial-Organizational Psychologist.2

Similarities/Differences Between Professions.3

Part 2: Monthly Budget Calculator..5

Part 3: College Loans and Car Debt7

Spreadsheet 1: Car Debt and Student Debt..........7

College Loan and Car Debt Analysis..8

Part 4: Mortgage and Credit Card Debt...10

Spreadsheet 2: Mortgage and Credit Card Debt10

Home and Mortgage Information..12

Credit Card Debt Information....13

Part 5: Savings and Investment..15

Savings and Retirement Spreadsheet.15

Part 6: Final Thoughts17

Personal Finance Literacy Portfolio

Kayla Cook

Civics and Economics

Mr. Edwards

17 May 2017
 1

Part 1: Profession Comparison

Profession A: Building Cleaner Worker

Title of the Profession Building Cleaner Worker

Median Salary $17,790/year

Entry Level Education High School Diploma

Requirement

Is there any on-the-job Yes, short-term on-the-job training is required.

training required?

Job Outlook for the Currently there are 2,360,600 jobs as a building cleaner worker,
Next 10 Years however it is expected to grow by 6% (as fast as average).

What does the Janitors and building keep office buildings, schools, hospitals,
Profession Do? retail stores, hotels, and other places clean, sanitary, and in good
condition. Some only clean, while others have a wide range of
duties. In addition to keeping the inside of buildings clean and
orderly, some janitors and building cleaners work outdoors,
mowing lawns, sweeping walkways, and removing snow. Some
workers also monitor the buildings heating and cooling system,
ensuring that it functions properly. They use cleaning tools such as
mops, brooms, rakes, and snowblowers. Building superintendents
are responsible for maintaining residential buildings, like
apartments or condominiums. Custodians typically maintain
institutional facilities, such as public schools and hospitals.

What does the work Most janitors and building cleaners work indoors, but some work
environment consist outdoors for some of the time. They spend most of the day walking,
of? standing, or bending while cleaning. As a result their work may be
more strenuous, dirty, and unpleasant. Building cleaner workers
have a higher rate of injuries and illnesses than the national
average. Thus, workers are usually required to take safety training.
Most building cleaner workers work full time, but some may work
part time. Because institutional buildings are often cleaned while
they are empty, most cleaners work night hours. School janitors,
though, work through the day. In hospitals and hotels, where
24-hour maintenance is required, janitors work in shifts.

List one similar job to Pest Control Workers are similar to building cleaner workers in
the profession that they both are employed to maintain the cleanliness and
function of facilities, such as institutions, offices, and properties.
Pest control technicians identify pest problems, conduct
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inspections, and design control strategies. Applicators use a wide

range of pesticides to eliminate the problem and to create a cleaner
property.

Related Activity: Find To become a building cleaner worker, there is no requirement for
a College With the any formal educational credential. However, high school courses in
Course of Study shop can be helpful for jobs involving repair work. Most janitors
and building cleaners learn on the job. Beginners work with a more
experienced janitor, and are taught how to use and maintain
equipment. It is not required, but one may be certified through the
Building Service Contractors Association International.
Certification can demonstrate competence and may make
applicants more appealing to employers. However, a building
cleaner worker could potentially attend class at Wake Technical
Community College and earn an associates degree to earn a higher
wage on the job. One could possibly earn an associates degree in
Hospitality Management at Wake Tech. Each course is $76 per
credit, and to earn an associates degree at Wake Tech, 60 credits
are required. So the total cost of education would be $4,560.

Profession B: Industrial-Organizational Psychologist

Title of the Profession Industrial-Organizational Psychologist

Median Salary $104,570/year

Entry Level Education Masters Degree

Requirement

Is there any on-the-job To become an industrial and organizational psychologist, an

training required? internship or residency is required.

Job Outlook for the Currently there are 173,900 jobs, but this field is expected to grow
Next 10 Years by 19%, which is much faster than the average.

What does the Typically psychologists collect information from observations,

Profession Do? interviews, surveys, and other methods. They conduct scientific
studies of behavior and brain function, and test for patterns that will
help them better understand and predict behavior.
Industrial-Organizational Psychologists apply psychology to the
workplace by using psychological principles and research methods
to solve problems and improve the quality of work life. They study
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issues such as workplace productivity, management or employee

working styles, and employee morale. They also work with
management on matters such as policy planning, employee
screening or training, and organizational development.

What does the work Industrial-organizational psychologists work in business settings or

environment consist human resources offices. They may also work in federal or state
of? agencies, consulting firms, or private research organizations. I-O
Psychologists work full-time schedules during regular business
hours.

List one similar job to Market Research Analysts are similar to Industrial-Organizational
the profession Psychologists. Typically, they gather data to help a company
market its products or services. They gather data on consumer
demographics, preferences, needs, and buying habits. Similar to
I-O Psychologists, they collect data and information from
interviews, questionnaires, focus groups, market analysis surveys,
and other methods. Both I-O Psychologists and Market Research
Analysts perform research to help companies become more
productive and efficient.

Related Activity: Find In order to become an Industrial-Organizational Psychologist, it is

a College With the recommended that one continues their education on to a doctoral
Course of Study degree in I-O Psychology. One could attend the University of
North Carolina at Charlotte and receive a B.A. in Psychology for
$18,631. Then that person could go on and attend the University of
North Carolina at Chapel Hill and receive a Master of Science
Degree in Psychology for $23,206. Finally, that student can
continue to their Doctorate Degree and receive a Ph.D. in
Industrial-Organizational Psychology at Columbia University for
$48,646. The total cost would be $90,483.

Similarities or Differences between the two Professions:

There are more differences than similarities between the occupations of an

Industrial-Organizational Psychologist and a Building Cleaner Worker. First, an I-O

Psychologist earns approximately $86,780 more annually than a Building Cleaner Worker.

Having a job as a Building Cleaner Worker would not only be more demanding economically,
 4

but also physically because janitorial jobs are more arduous. Additionally, janitors are more

likely to have to work night hours, while I-O Psychologists primarily work office hours. Another

notable difference is the cost of education per career. I-O Psychologists will have to spend close

to $90,000 on education if they want to pursue a doctorate. However, to become a building

cleaner worker, no formal education is required, so there is not an extensive student loan that

needs to be paid off. According to the Bureau of Labor Statistics, there are more states offering

employment opportunities for janitorial careers. Employment for I-O Psychologists is more

limited, and primarily lies in Missouri, Virginia, New Jersey, Pennsylvania, and Massachusetts.

This could be another difference to keep in mind when comparing an I-O Psychologist career to

a Building Cleaner Worker one.

Part 3: College Loans and Car Debt

Spreadsheet 1: Car and Student Debt

Car Debt

Make/Model of Car 2014 Honda CR-V LX

Picture of Car

Vehicle Price $16,998

Tax, Title, Fees $950

APR 7.50%

Term Length 72 months

Down Payment $597

Monthly Payment $300

Car Insurance Geico

Provider

Car Insurance $52.75

Monthly Payment

Student Debt

Loan Amount $37,000

Loan Term 60 months (5 years)

Interest Rate per year 6%/year

 Monthly Payments $96.66

Impact on Budget

Car Debt Monthly Payment: $300

(Monthly Payment, Car Car Insurance Monthly Payment: $52.75
Insurance Monthly) Total Payment: $352.75

Student Debt Monthly Payment: $96.66

Total Payment: $96.66

Total Debt $449.41

Total Savings after

Monthly Budget $6,079.73
Calculator

Total Savings after $6,079.73 - $449.41=

Monthly Budget
Calculator and Car $5,630.32
and Student Loans

College Loan and Car Debt Analysis

The 2014 Honda CR-V LX that I chose to purchase is a used car. One of the reasons that

this car was chosen, was because it was a reasonable price for a fairly recently made car.

Additionally, it was large enough to be used by the entire family of 4, with 5 seats within the car.

Instead of buying a brand new car, this used car was chosen so that the monthly payment would

be less, and it would give the monthly budget more room for adding things like student loans,

mortgage payments, and credit card debt. Hondas are reliable cars, according to Forbes, and they

typically last as long as 332,357 miles. This would be ideal for a busy family of 4, with school

and work commute included.

Things that would factor into the student loan payment would be whether or not I go on

to receive a Doctorate in I-O Psychology, or if I do not further my schooling after receiving a

Masters Degree. If I were to go on and get her Ph.D., I would have to take out additional loans

in order to afford this schooling. Student loans also depend on what kind of federal loan the

student takes. Undergraduates can borrow a direct subsidized or direct unsubsidized federal loan,

with an interest rate of about 4.29%. Graduate or professional students can borrow a direct

unsubsidized loan with an interest rate of 5.84%, or direct grad PLUS with an interest rate of

6.84%. Lastly, a parent can borrow a loan at an interest rate of 6.84%. The different interest rates

will affect the monthly payment per student.

The budget was definitely affected by the addition of car debts and student loans. Rather

than having a savings of $6,079.44, it was decreased to only $5,630.32. This shows the greater

impact that buying a car or getting a loan for college can have on a persons income. It is an

opportunity cost, because instead of keeping the money and taking the bus or finding other ways

to pay for the college, my income was decreased by $449.12. Thus it can be seen that additional

debts, change the way a person spends their money, and should be calculated when creating a

monthly budget.
Part 4: Mortgage and Credit Card Debt

Home and Mortgage Information

The home I chose is 160 Locke Woods Rd, Raleigh, NC 27603. The home is located

right off a golf course, and features a jacuzzi and wrap around front porch. It also provides

heating and cooling, a two-car garage, access to a neighborhood pool and recreation center, and

0.37 acres of land. It is within 5 miles of highly rated elementary, middle, and high schools,

which is a benefit considering I have two young children. Because of the location and the homes

amenities, I found this home ideal for a family of four and for my monthly income of $8,714. It

wasnt only the qualities of the home made it attractive to buy; it was more practical to purchase

a home that I planned on living in for more than 30 years rather than paying a rental fee for as

many years that I stayed in the rental. The cost of the home is $339,999, which is unaffordable to

pay completely up front. Instead, I opted to pay a monthly mortgage of $1,844 over a 30-year

fixed period. I paid a down payment of $5,000 and my monthly mortgage included an interest
rate of 3.851%. Because I no longer have to pay the rent for my rental home, my monthly budget

was adjusted from the addition of my new mortgage. My monthly mortgage payment is only

$105 more than my rental fee for my old home was. So this change in finances allowed me to be

able to purchase a home without drastically damaging my budget.

Credit Card Debt Information

The Monthly Budget Calculator included the cost of renting a home, electricity, cell

phone cost, internet/cable cost, grocery cost, and water/utilities cost based off of a monthly

income of $8,714.17. Based off of my economic decisions towards those costs, I spent a total of

$2,634.73 per month, and saved $6,079.44 each month. This seems like a large sum of money to

have saved, but as the two spreadsheets will later show, there are other sources of debt that can

strain the budget. The two spreadsheets give a more realistic look at expenses that must be made

in many peoples lives. The first spreadsheet factors into the monthly budget a car debt. I

purchased a vehicle and had to pay tax, titles and fees for $950, a down payment of $597, and

then a monthly payment of $300 for 72 months. Then I decided to get a loan for my student debt.

In order to pay off my debt of $37,000, I decided to make monthly payments of $96.66 per

month for 60 months.

The second spreadsheet showed that I decided to purchase my own home. However, at

$339,999 my home was too expensive for me to buy considering my monthly income of

$8,714.17. So, I decided to pay a monthly mortgage of $1,844 per month for 30 years after a

down payment of $5,000. This was an opportunity cost I made, because I decided to purchase a

home rather than sticking to the cheaper rental and using the money to put towards savings or
credit card fees. Yet the mortgage, besides the original down payment, did not cost much more

per month than my original rental home did. The last item featured on the second spreadsheet

was my credit card debt. I needed to choose a credit card that best suited me in order to make a

$1,000 purchase. I had it narrowed down between the Discover Card, Chase Freedom Cash Back

Card, and BankAmericard Credit Card, because all three of those cards had no annual fees, but I

decided to go with the Discover Card because it had the lowest ongoing APR at 11.74-23.74%

and it offered 0% intro APR for 14 months rather than the first 60 days. I chose to pay off my

card by making monthly payments of $63.33 for 18 months, which didnt affect my budget

enormously in the end. By paying for all the same costs as the Monthly Budget Calculator

(except for the rental home) and by adding the car, student loan, mortgage, and credit card I

actually didnt face the troubles I had expected. With the exception of the down payments and

tax, title and fees for the cary, I still had $5,362.53 left saved after making these additional

expenses on top of the Monthly Budget Calculator expenses.

 Part 4: Mortgage & Credit Card Debt

Spreadsheet 2: Mortgage and Credit Card Debt

Mortgage Information

Home Price $339,999

Down Payment $5,000 (1%)

Loan Term 30-year fixed

Interest Rate 3.851%

Monthly Mortgage $1,844/mo

Bank Wells Fargo

Monthly $99.17
Homeowners
Insurance

Address 160 Locke Woods Rd, Raleigh, NC 27603

Credit Card Debt

Rewards Rate 1.00%

Discover Card Annual Fee $0

Intro APR 0% on purchases and balance transfers for 14 months

Ongoing APR 11.74%-23.74% variable APR

Rewards Rate 1.00%

Chase Freedom Annual Fee $0

Cash Back Card
Intro APR 0% on purchases and balances transfers for 15 months

Ongoing APR 15.74%-24.49% variable APR

Rewards Rate No rewards

BankAmericard Annual Fee $0

Credit Card
Intro APR 0% on balance transfers for 18 billing transfers made in
the first 60 days
 Ongoing APR 11.74%-21.74% variable APR

Chosen Card Discover Card I chose the Discover Card because it had the lowest
ongoing APR at 11.74-23.74% and it offered 0% intro
APR for 14 months rather than the first 60 days.

Current Debt $1,000 It will take payments of $63.33/month to pay off the debt
in 18 months.

Impact on Budget

Mortgage Debt Monthly Payment: $1,844

Homeowners Insurance Monthly Payment: $99.17
Total Payment: $1,943.17

Credit Card Debt Monthly Payment: $63.33

Total Payment: $63.33

Total Debt $2,006.50

Total Savings after

Monthly Budget $6,079.73
Calculator

Total Savings after

Monthly Budget
Calculator and $5,630.32
Car and Student
Loans

Total Savings after $5,630.32 - $2,006.50=

Monthly Budget
Calculator, Car
and Student Loans, $3,623.82
and Mortgage and
Credit Card

Part 5: Savings and Investments

Total Monthly Savings $5,362.53

Total Annual Savings $64,350.36

Initial Amount $2,000

Monthly Deposit $100

Annual Interest
Compounded Monthly 6.5%
Savings Account Number of Years 10

Savings by Year 1 $3,370.35

Savings by Year 5 $9,833.03

Savings by Year 10 $20,664.68

Chosen Stock Apple Inc. (AAPL)

Stock Market Price of Stock $155.47

Estimated Growth 11.9%

Minimum Opening $25

Deposit

$5
Monthly Service Fee (can be avoided if the daily balance is
Wells Fargo maintained at a minimum of $300)
Way2Save Savings
Key Features Monthly Automatic Transfers of
$25 option
Overdraft protection for your
checking account
Transfer $1 of funds from checking
account to savings account

Minimum Opening Not specified

Deposit

Monthly Service Fee No monthly fees

Citi Bank
Ultimate Business Saver Key Features Monthly eStatements
Easy online, mobile, tablet, and
 telephone banking
Interest is calculated daily and paid
monthly

Chosen Bank Wells Fargo I chose to go with the Wells Fargo option
because the savings plan offers more
benefits that prevents overspending from
the savings account and contributes daily
amounts into the account that protects and
ensure savings in the future. Also, the
monthly fee of $5 can be avoided if the
account is maintained above $300. So, if I
initially put over $300 into the account and
do not take money from the account, over
time the account will gain interest and will
prevent me from having to pay extra fees.

Retirement Retirement $1,707

Information gathered Investment
from the Wells Fargo
Retirement Plan Fixed monthly $1,307 (15% of my monthly income)
Calculator amount

Why this amount? If I contribute 15% of my monthly income,

I will be able to retire comfortably by age
65 with an average of $27,039/month
available to me in retirement, according to
the Wells Fargo Retirement Plan.

What you are saving By setting this money aside, I am saving

for? for a goal of $27,039/month in retirement,
which will help me retire by age 65.

Retire by age 55 Fixed monthly amount: $3,138 (36% of

monthly income)
Receive: $24,515/month in retirement

Retire by age 65 Fixed monthly amount: $1,307 (15% of

monthly income)
Receive: $27,039/month in retirement

Other sources of Social Security is the most common source

income in retirement of retirement income. Other retirees rely on
pensions provided from their former
employer. Investing in stocks can be
another source of income, and a part-time
job could also provide additional money.
Part 6: Final Thoughts

The Personal Finance Literacy Profile Project was eye-opening, to say the least, about

real world personal financing and the time and thought that goes into accurately developing a

workable budget. It also showed me the strains that having a lower paying job can have on

simple expenses, such as groceries. With my low-paying job as a building cleaner worker, I had

to feed four people and pay for the additional amenities off of a $1,482/month budget. I would

not have been able to afford a car payment, credit card payment, and definitely not a mortgage

with that income. Even with a monthly income of $8,714 as an I-O Psychologist, I struggled with

having enough money in the end to put towards retirement. One thing that this project did not

require to budget towards, but in reality would be necessary, is schooling for my two theoretical

children. I would most likely have had to set money aside for their education, and there probably

could have been a need for me to put money towards their extracurriculars if a child did a sport.

I found it very interesting to be able to research the different requirements of being a

building cleaner worker in comparison to becoming an I-O Psychologist. It was beneficial to be

introduced to the Bureau of Labor website, because it gave insight into the details of almost

every job imaginable in the United States. This will be very helpful to me in the future as I

investigate other possible future careers for me. The project was also beneficial for me to have

been able to see the amount of money that goes into car payments, mortgages, and credit card

payments. I didnt realize the amount of money it takes through APR, down payments, and

monthly payments in order to have access to those things. This project illustrated how important

it is to begin financing early. I needed to begin setting monthly payments aside at age 25 in order

to retire at age 65, which is a bit unbelievable. Im really glad that I was given this project,

because it has shown me a skill I will certainly use in the future.