Copy of 12 Cost of Living Worksheet

Cost of Living Objective: Students will compare income to the cost-of-living in various geographical areas and the impact it has on purchasing power. Now that we have talked about the cost of living in class, it is your turn to do some research to see the impact that cost-of-living can have on purchasing power in different areas around the United States and the world. You have ONE CLASS PERIOD to finish this assignment. Follow the instructions for each section below. Full points will be awarded to those who complete this assignment in its entirety. 1. Salary Comparison a. Go to the Cost of Living Wizard calculator at b. In the SALARY section type in $40,000 per year. c. For the PRESENT LOCATION type your city (or closest large city). d. Under the NEW LOCATION, choose 5 different states/cities (one at a time) i. It may be helpful to keep these 5 cities somewhat large. e. Press calculate, record your results for each city in the table below. State/City Cost of Living compared to Provo, Utah What would your salary need to be in order to maintain your current standard of living? Who do salaries typically compare in this location to Provo? If you had the same type of job in the new locations now what are you likely to have as your salary? Ex Alabama/ Birmingham 7% Higher $42,805 Alabama employers typically pay 3% more than Provo $41,197 1 Colorado / Denver 15% Higher $46,000 Employers typically pay the same as Provo $40,000 2 New York / New York City (Brooklyn ) 45% Higher 3 Texas / Austin 10% Higher Washi ngton / Seattl e 25% Higher Florida / Miami 18% Higher 4 5 $58,000 $44,000 $50,000 $47,200 Employers typically pay 20% more than Provo $48,000 Employers typically pay 5% more than Provo $42,000 Employers typically pay 10% more than Provo $45,000 Employers typically pay 8% more than Provo $43,500 2. General Expenses to Salary Comparison a. Using the same five State/Cities from above, go the the CNN Cost of living calculator at https://cnnmon.ie/2XA2SXv b. In the I LIVE IN box type UT - Provo-Orem. c. Under the I WANT TO LIVE IN section, input the same five cities i. If your choice isn’t available, pick a larger nearby city. d. Drag the I CURRENTLY MAKE bar to $40,000 ($40K) e. Record your result in the table below. State/City Comparable Salary in New Location Cost of Living Comparisons to Provo by Category Groceries Housing Utilities Transportation Health Care 14% More 19% Less 8% Less 0% 8% more 9% More 13% More 12% Less 13% More Ex Alabama/ Birmingham $36,497 6% Less 19% Less 1 Colorado / Denver $54,21 9 5% Less 25% 4% More Less 2 New York / New York City (Brooklyn ) $86,03 27% 177% 18% 3 More More More 3 Texas $49,27 / 3 Austin 10% Less 4% 6% More More 4 Washi $74,68 26% 98% 20% 20% More ngton 5 More More More / Seattl e 5 Florida / Miami $58,58 21% 33% 17% 4 More More More 5% More 3. International Cost-of-Living a. Choose a place OUTSIDE of the US to compare with the city near where you live. b. Go to https://bit.ly/1QNytJ2 c. In “Where you want to move” type in a CITY from a country outside of the US. d. Click compare (With “city near where you live”) e. Fill in the box and answer the questions below. Cost of Living in Tokyo, Japan is 21.67% more expensive than in Provo, Utah (United States) Food 20% More Housing 50% More Clothing 10% More Transportation 30% More Personal Care 5% More Entertainment 15% More TOTAL 21.67% More 4. Reflection 39% More 5% More 1. What is the definition of Cost of Living? Cost of living means the total money a person needs to spend to maintain some standard of living; cost including housing, food, healthcare, transportation, and other such things. 2. Which things surprised you the most? List two specific things. a. The cost of housing in New York City is significantly higher than in Provo, indicating a substantial price variation in major urban areas. b. The relatively lower cost of living in Birmingham, Alabama, compared to Provo, despite it being a relatively large city. 3. What are three factors that influence the cost of living from area to area? a. Local Economic Conditions: Availability of jobs and wage rates: These are major determinants of cost. b. Supply and Demand in Housing: Availability of housing and the local real estate market are immediate determinants of the prices that individuals will be asked to pay for housing. c. State and Local Taxes: These taxes include income tax, sales, and property. They can affect the cost of living everywhere, thereby influencing who goes where. 4. Which city that you researched had the highest cost of living overall? Lowest? a. Highest: New York / New York City (Brooklyn) b. Lowest: Alabama / Birmingham