Housing Vehicles & Equipment
Section I / Section II

Compare up-front costs, monthly costs, lost interest, termination fee, and the residual value on the vehicle after your lease or payments have been completed in deciding between buying and leasing a vehicle. Build assets by keeping the vehicle for years after it is paid. Consumer Reports, April 1993 provided this illustration:

Obtain the brochure Keys to Vehicle Leasing: A Consumer Guide from Publications Services, Board of Governors of the Federal Reserve System, Mail Stop 127, Washington, DC 20551. Compare residence hall versus apartment living or living at home. Students have found that independent housing is less costly than a residence hall but the food costs are more. Time, energy, and transportation need to be in the formula for making a good decision.

Get information and know alternatives to maximize your resources. See Consumer's Report, Consumer Information Catalogue, and Consumer Action Handbook for handling disputes about products and services.

• Use the "Rule of Three" - Compare at least three places, three products, or three types of financing when purchasing durable goods.
  
  
• Consider transportation costs in housing decisions and vice versa.
  
  
• Continually evaluate your housing for saving money on utilities and on payments. Continue evaluating your method of transportation to save money on payments, insurance, upkeep, repairs, and efficiency in number of trips.
  
  
• Remember the "60- 40 rule" (Williams) in housing and in transportation to more accurately estimate cost. (Payment is only 60% of total cost or mortgage payment is only 60% of total housing cost).
  
  
• Calculate maintenance and cost over time, not just the initial cost.
  
  
• Buy a good used car rather than a more expensive one, and pay more towards college debt.
  
  
• When graduating, consider living at home or sharing an apartment to defray other start up costs.
  
  
• Do not bind yourself financially or emotionally to specific housing that would prevent you from moving to realize better opportunities.
  
  
• When buying a house to build assets, remember that most of the monthly payment in the beginning is interest, which is tax deductible to the high salaried graduate. It will appreciate in value depending on care and location.

Housing, Vehicles & Equipment Section I / Section II Advance to Insurance Return to Credit

Family - Government & Community - Education & Skills - Employment - Management - Credit - Housing, Vehicles & Equipment - Insurance - Savings - Investment - Financial Planning
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