Stewardship Project
Project Description
Welcome to the High Tech Middle Chula Vista Stewardship project, a year long simulation that aims to mimic real life financial situations for students in order for them to learn and apply math in their financial decision making. Below you will find information about the various parts of our project.
wealth
Students starting wealth was determined randomly. Our team's wealth of $100,000 was distributed in proportion to current wealth inequality in America. This meant that 1% of the 51 students (1 student) started out with 40% of the wealth ($40,000). And 80% of the 51 students (41 students) students had to divide up only 7% of the wealth ($7,000).
INCOME
Students earn income by:
- Doing their classwork
- Getting a class job
- Starting a business
- Investing
Rent /Mortgage (Mandatory)
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Students researched current rental rates for 3 and 4 bedroom places to live. They found the average of 1 bedroom in the Chula Vista (San Diego, CA) area. Students pay monthly rent. In the future they will have the opportunity to buy their desk for the year.
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Life cycle (Mandatory)
The life cycle is mean to mimic life's unexpected health, auto and home costs.
Students gathered real data of prices of auto, health and home items that would possibly be purchased. Averages were found for each item.
Students will spin the randomized life cycle each month. Whatever the situation the life cycle lands on, students will either pay the costs directly or have purchased insurance prior to cover the costs.
Students gathered real data of prices of auto, health and home items that would possibly be purchased. Averages were found for each item.
Students will spin the randomized life cycle each month. Whatever the situation the life cycle lands on, students will either pay the costs directly or have purchased insurance prior to cover the costs.
life cycle
Taxes (Mandatory)
Students will have to calculate and pay taxes monthly. The following taxes will apply:
- Income tax - actual Federal tax brackets used
- Property tax - for those owning desks
- Capital gains tax - for those investing
- Business tax - for those owning small businesses
- Contribute to a Traditional IRA (Individual Retirement Account)
- Mortgage Interest paid
- Property tax paid
- Donations to a charitable organization in class
- The amount of medical expenses that exceed 10% of your monthly income
INvestments (optional)
Students can choose a basket of investments of stocks and bonds. Rates of returns are calculated by randomly selecting four returns from the Standard and Poor's 500 (S&P 500) and 10 year Treasury bonds from 1928 - 2016.
Investments will be compounded weekly in order to simulate a 40 year investment plan.
Each investment portfolio has a section for regular investing and for retirement. Students can choose between a Traditional IRA or Roth IRA (Individual Retirement Arrangement).
Investments will be compounded weekly in order to simulate a 40 year investment plan.
Each investment portfolio has a section for regular investing and for retirement. Students can choose between a Traditional IRA or Roth IRA (Individual Retirement Arrangement).
DEBT (Optional)
Students have the option to borrow money. So far there are two reasons to borrow money.
- Student loans - borrow money to attend Koteach University in order to obtain a degree focusing on a particular skill to enable you to do a particular classroom job. This interest rate is 4.45% (the current federal loan interest rate for undergraduates according to studentaid.ed.gov)
- Credit cards - borrow money to buy more in class. This interest rate is 16.7% (the national average as of September 2017 according to bankrate.com)
- Mortgage - Students who borrow money via a mortgage use it to buy a desk in our classroom. The interest rate is 2.85% for a 15 year fixed loan (the national average as of September 2016 according to bankrate.com)
BUSINESS (Optional)
Students have the option of creating their own classroom business.
Businesses can:
Businesses can:
- provide a service or product that ANYONE has the ability to do. (Tax service - Help students fill out their tax forms for our project)
- provide a service or product that is school appropriate. (backpack carrying service)
- provide a service or product that NOT EVERYONE has the ability to do. (Selling erasers. Not everyone can go to Walmart, buy packages of erasers and sell them)
- provide a service that is NOT school appropriate. (Foot massage service is not school appropriate)