The Real Cost of Car Ownership
Inquiry Framework
Question Framework
Driving Question
The overarching question that guides the entire project.How can we make informed financial decisions about car ownership, considering loans, ongoing expenses, insurance, and unexpected costs, while also weighing alternative transportation options?Essential Questions
Supporting questions that break down major concepts.- How do car loans work and what are the different types of interest rates?
- What are the ongoing costs of car ownership beyond the initial purchase price?
- How does car insurance work and what factors affect the cost of premiums?
- How can you budget for unexpected car repairs and maintenance?
- What are the opportunity costs of owning a car versus using alternative transportation methods?
Standards & Learning Goals
Learning Goals
By the end of this project, students will be able to:- Understand the mechanics of car loans, including interest rates and repayment terms.
- Identify and budget for ongoing car ownership costs (fuel, maintenance, insurance).
- Comprehend how car insurance works and factors influencing premiums.
- Develop strategies for handling unexpected car repairs and maintenance expenses.
- Compare the financial implications of car ownership versus alternative transportation.
- Make informed financial decisions regarding car ownership.
Entry Events
Events that will be used to introduce the project to studentsThe $20,000 Ride
Students are shown a seemingly affordable used car, priced at $20,000. They then receive a detailed breakdown of all associated costs (insurance, gas, maintenance, etc.) over a 5-year period, revealing the true cost is closer to $40,000. This sparks immediate inquiry into hidden expenses and responsible financial planning.Portfolio Activities
Portfolio Activities
These activities progressively build towards your learning goals, with each submission contributing to the student's final portfolio.The Cost Breakdown
Students will identify and quantify the various ongoing costs associated with owning a car.Steps
Here is some basic scaffolding to help students complete the activity.Final Product
What students will submit as the final product of the activityA detailed cost breakdown spreadsheet and a reflective journal entry discussing factors influencing car ownership expenses.Alignment
How this activity aligns with the learning objectives & standardsAddresses the learning goal: Identify and budget for ongoing car ownership costs (fuel, maintenance, insurance).Insurance Insights
Students will explore the complexities of car insurance, examining different types of coverage and factors influencing premiums.Steps
Here is some basic scaffolding to help students complete the activity.Final Product
What students will submit as the final product of the activityA comparative analysis of car insurance quotes and a presentation explaining the different types of coverage and factors influencing premiums.Alignment
How this activity aligns with the learning objectives & standardsAddresses the learning goal: Comprehend how car insurance works and factors influencing premiums.Repair Ready
Students will develop strategies for budgeting for unexpected car repairs and maintenance.Steps
Here is some basic scaffolding to help students complete the activity.Final Product
What students will submit as the final product of the activityA car maintenance schedule with cost estimates and a budget plan incorporating a repair contingency fund.Alignment
How this activity aligns with the learning objectives & standardsAddresses the learning goal: Develop strategies for handling unexpected car repairs and maintenance expenses.Transportation Alternatives
Students will compare the financial implications of car ownership with alternative transportation methods.Steps
Here is some basic scaffolding to help students complete the activity.Final Product
What students will submit as the final product of the activityA comparative analysis of transportation costs and a persuasive essay advocating for the most financially responsible option.Alignment
How this activity aligns with the learning objectives & standardsAddresses the learning goal: Compare the financial implications of car ownership versus alternative transportation.Decision Time
Students will synthesize their learning to make an informed financial decision about car ownership.Steps
Here is some basic scaffolding to help students complete the activity.Final Product
What students will submit as the final product of the activityA personal financial plan outlining transportation choices and a justification for their decision based on financial responsibility.Alignment
How this activity aligns with the learning objectives & standardsAddresses the learning goal: Make informed financial decisions regarding car ownership.Loan Lingo
Students will investigate the basics of auto loans, focusing on key terms and calculations.Steps
Here is some basic scaffolding to help students complete the activity.Final Product
What students will submit as the final product of the activityA glossary of auto loan terms and a comparative analysis of loan scenarios, showcasing the effects of interest rates and loan terms on total repayment.Alignment
How this activity aligns with the learning objectives & standardsAddresses the learning goal: Understand the mechanics of car loans, including interest rates and repayment terms.Rubric & Reflection
Portfolio Rubric
Grading criteria for assessing the overall project portfolioFinancial Literacy: Car Ownership Portfolio Rubric
Cost Analysis and Budgeting
Demonstrates the ability to accurately identify, quantify, and budget for all ongoing costs associated with owning a car, as well as potential unexpected costs.Expense Identification
Accuracy and comprehensiveness in identifying all relevant car ownership expenses.
Exemplary
4 PointsIdentifies all car ownership expenses with exceptional detail and accuracy, including often overlooked costs (e.g., depreciation, roadside assistance).
Proficient
3 PointsIdentifies most car ownership expenses with accuracy, including major categories like fuel, insurance, and maintenance.
Developing
2 PointsIdentifies some car ownership expenses, but misses several key categories or shows inaccuracies in cost estimation.
Beginning
1 PointsStruggles to identify car ownership expenses and shows significant inaccuracies in cost estimation.
Cost Quantification
Accuracy and reasonableness in quantifying car ownership expenses with supporting data.
Exemplary
4 PointsProvides highly accurate and well-supported cost estimations for all expenses, demonstrating strong research skills and attention to detail; includes local context.
Proficient
3 PointsProvides accurate cost estimations for most expenses, with reasonable supporting data from reliable sources; reflects a good understanding of cost factors.
Developing
2 PointsProvides cost estimations for some expenses, but lacks sufficient supporting data or relies on unreliable sources; demonstrates some understanding of cost factors.
Beginning
1 PointsProvides inaccurate cost estimations with little or no supporting data; demonstrates limited understanding of cost factors.
Budgeting and Contingency Planning
Effectiveness in creating a comprehensive budget and planning for unexpected repairs.
Exemplary
4 PointsCreates a detailed and realistic budget that incorporates all identified expenses and includes a well-defined contingency plan for unexpected repairs with specific cost-saving strategies.
Proficient
3 PointsCreates a comprehensive budget that includes most identified expenses and a general contingency plan for unexpected repairs.
Developing
2 PointsCreates a basic budget that includes some identified expenses, but lacks a clear contingency plan for unexpected repairs.
Beginning
1 PointsStruggles to create a budget or plan for unexpected repairs; budget is incomplete and unrealistic.
Insurance Knowledge
Demonstrates understanding of car insurance types, factors affecting premiums, and cost-benefit analysis.Coverage Understanding
Demonstrates knowledge of different types of car insurance coverage (liability, collision, comprehensive).
Exemplary
4 PointsDemonstrates a comprehensive understanding of various car insurance coverage types and their specific protections, including nuanced differences.
Proficient
3 PointsDemonstrates a solid understanding of the main car insurance coverage types and their basic protections.
Developing
2 PointsDemonstrates a limited understanding of car insurance coverage types and struggles to explain their protections.
Beginning
1 PointsShows minimal understanding of car insurance coverage types.
Premium Factors
Identifies and explains the impact of factors affecting insurance premiums (age, driving record, location).
Exemplary
4 PointsAccurately identifies and thoroughly explains the complex interplay of factors that affect insurance premiums, citing specific examples and data to support claims.
Proficient
3 PointsIdentifies and explains the major factors that affect insurance premiums with reasonable accuracy.
Developing
2 PointsIdentifies some factors that affect insurance premiums, but struggles to explain their impact accurately.
Beginning
1 PointsStruggles to identify factors that affect insurance premiums.
Cost-Benefit Analysis
Analyzes the relationship between deductibles, coverage limits, and overall insurance costs.
Exemplary
4 PointsConducts a sophisticated cost-benefit analysis of deductibles, coverage limits, and insurance costs, justifying choices with clear reasoning and financial implications.
Proficient
3 PointsAnalyzes the relationship between deductibles, coverage limits, and insurance costs, drawing reasonable conclusions.
Developing
2 PointsShows a basic understanding of the relationship between deductibles, coverage limits, and insurance costs, but struggles to draw meaningful conclusions.
Beginning
1 PointsFails to analyze the relationship between deductibles, coverage limits, and insurance costs.
Loan Comprehension
Demonstrates understanding of auto loan mechanics, terminology, and impact on overall cost.Loan Terminology
Defines and explains key auto loan terms (principal, interest rate, loan term, APR).
Exemplary
4 PointsDefines and explains key auto loan terms with exceptional clarity and accuracy, demonstrating a deep understanding of their implications.
Proficient
3 PointsDefines and explains key auto loan terms accurately.
Developing
2 PointsDefines some auto loan terms, but struggles to explain them accurately or completely.
Beginning
1 PointsStruggles to define auto loan terms.
Loan Calculation
Accurately calculates monthly payments and total loan cost using loan calculators.
Exemplary
4 PointsUses loan calculators effectively and accurately to compute monthly payments and total loan cost for various scenarios, including analysis of amortization schedules.
Proficient
3 PointsUses loan calculators accurately to compute monthly payments and total loan cost.
Developing
2 PointsUses loan calculators with some accuracy, but makes occasional errors in computation or interpretation.
Beginning
1 PointsStruggles to use loan calculators effectively or accurately.
Impact Analysis
Analyzes the impact of interest rates and loan terms on the total cost of the loan.
Exemplary
4 PointsProvides a comprehensive analysis of the impact of interest rates and loan terms on the total cost of the loan, demonstrating a sophisticated understanding of compounding interest and long-term financial implications.
Proficient
3 PointsAnalyzes the impact of interest rates and loan terms on the total cost of the loan.
Developing
2 PointsShows some understanding of the impact of interest rates and loan terms, but struggles to quantify or explain the effects clearly.
Beginning
1 PointsFails to analyze the impact of interest rates and loan terms on the total cost of the loan.
Transportation Alternatives
Evaluates and compares the financial implications of car ownership versus alternative transportation methods.Alternative Identification
Identifies a variety of viable alternative transportation options.
Exemplary
4 PointsIdentifies a comprehensive range of viable alternative transportation options relevant to their local context, including emerging options (e.g., e-scooters, car sharing).
Proficient
3 PointsIdentifies several viable alternative transportation options.
Developing
2 PointsIdentifies a limited number of alternative transportation options.
Beginning
1 PointsStruggles to identify alternative transportation options.
Cost Comparison
Accurately calculates and compares the costs associated with car ownership and alternative transportation.
Exemplary
4 PointsAccurately calculates and compares the costs associated with car ownership and alternative transportation, considering both direct and indirect costs, and opportunity costs with strong quantitative support.
Proficient
3 PointsAccurately calculates and compares the costs associated with car ownership and alternative transportation.
Developing
2 PointsCalculates and compares the costs with some inaccuracies or omissions.
Beginning
1 PointsStruggles to calculate and compare the costs effectively.
Pros & Cons Analysis
Analyzes the pros and cons of each option, considering factors beyond cost (convenience, environmental impact).
Exemplary
4 PointsProvides a nuanced and insightful analysis of the pros and cons of each transportation option, considering a wide range of factors beyond cost (convenience, environmental impact, social equity), and presents a well-reasoned argument.
Proficient
3 PointsAnalyzes the pros and cons of each option, considering factors beyond cost.
Developing
2 PointsIdentifies some pros and cons, but lacks depth in analysis or consideration of factors beyond cost.
Beginning
1 PointsStruggles to identify or analyze the pros and cons of different transportation options.
Financial Decision-Making
Synthesizes learning to make an informed and financially responsible decision about car ownership.Personal Financial Profile
Creates a personal financial profile including income, expenses, and savings goals.
Exemplary
4 PointsCreates a detailed and realistic personal financial profile that accurately reflects their current situation and future goals, using researched data for accuracy.
Proficient
3 PointsCreates a personal financial profile including income, expenses, and savings goals.
Developing
2 PointsCreates a basic financial profile, but lacks detail or accuracy.
Beginning
1 PointsStruggles to create a personal financial profile.
Justification
Justifies transportation decision based on financial responsibility, using data and analysis.
Exemplary
4 PointsProvides a compelling justification for their transportation decision, supported by thorough data analysis and a clear understanding of their personal financial profile and broader financial principles.
Proficient
3 PointsJustifies their transportation decision based on financial responsibility, using data and analysis.
Developing
2 PointsProvides a justification, but lacks sufficient data or analysis to support their decision.
Beginning
1 PointsStruggles to justify their transportation decision or connect it to financial responsibility.
Action Plan
Develops a plan for managing transportation costs, whether owning a car or using alternatives.
Exemplary
4 PointsDevelops a detailed and actionable plan for managing transportation costs, whether owning a car or using alternatives, incorporating specific strategies and timelines, and demonstrating a proactive approach to financial management.
Proficient
3 PointsDevelops a plan for managing transportation costs, whether owning a car or using alternatives.
Developing
2 PointsCreates a basic plan, but lacks specific strategies or timelines.
Beginning
1 PointsStruggles to develop a plan for managing transportation costs.