A course syllabus for consumer mathematics

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A COURSE SYLLABUS FOR CONSUMER MATHEMATICS

A P ro je c t P re se n te d

to

t h e F a c u l t y of t h e S c h o o l of E d u c a tio n The U n i v e r s i t y o f S o u th e r n C a l i f o r n i a

In P a r t i a l F u lfillm e n t o f t h e R e q u ir e m e n ts f o r th e D egree M a s te r o f S c ie n c e i n E d u c a tio n

by C o n k lin B. G-entry A u g u st 1950

UMI Number: EP46325

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/- ,J

‘S'/ 6 - 3 3 , 9 P r^ . This pr o je c t report, writ ten under the direction of the candidateJs ad vi ser a n d a p p r o v e d by him, has been presen ted to and a c c e p te d by the F ac u lt y of the S c h o o l of E du c at io n in p a r ti a l fu lfillme nt of the requirements f o r the de gre e of M a s t e r of Science in Education.

Date

............................

Adviser

Dean

ii

TABLE OF CONTENTS CHAPTER 1.

PAGE

CAR FINANCES:

HOW TO REDUCE THE COST OF OWNING-

AND OPERATING YOUR C A R ........................................................... -1.

How t o a v o i d th e e x c e s s i v e l o s s o f money on y o u r c a r .................................

1

2.

How t o r e d u c e y o u r g a s c o n s u m p tio n . . . . .

2

3*

Howt o p r o l o n g t h e l i f e

2

of your t i r e s

. . .

How t o k ee p down t h e m ile a g e on y o u r c a r . . 5*

6.

2.

2

How t o c l a i m y o u r g a s o l i n e t a x . . . . . . .

FAMILY BUDGET: 1.

HOW TO BUDG-ST YOUR INCOME

3

. • .

How t o d e t e r m in e y o u r a c t u a l r e q u i r e m e n t s

.

6 6

How t o d i s t r i b u t e y o u r m o n th ly incom e i n t o a l l o t m e n t s f o r s a v i n g s and c u r r e n t e x p e n s e s .

3.

2

Howt o f i g u r e t h e m ile a g e r e m a in in g in y o u r t i r e s .............................................................

2.

1

OWNING- VERSUS RENTING-:

6

HOW TO CHOOSE BETWEEN

OWNING- AND RENTING- YOUR HOME

.......................

.

10

1.

Howt o o b t a i n t h e p r o p e r l o c a t i o n of a home.

10

2.

Howt o com pare t h e c o s t o f r e n t i n g w ith t h e c o s t of owning y o u r home . . . . . . . .

3*

11

How t o c h o o se b e tw e e n p u r c h a s i n g an e x i s t ­ i n g h o u se and b u i l d i n g a new o n e ..............................12

ill PAGE

CHAPTER 4.

INCOME TAX: RETURNS

HOW TO PREPARE YOUR INCOME TAX ................................................................................. 15

1*

Howt o c h o o s e y o u r r e t u r n f o r l o w e s t t a x . .

2.

Howt o c o u n t y o u r e x e m p t i o n s ........................................16

3*

Howt o f i g u r e y o u r incom e

4-.

Howt o d e t e r m i n e y o u r t a x by t h e s h o r t form 10^0

5*

* ....................................... 16

.... ..................................... .................................16

How t o c l a i m n o n b u s in e s s d e d u c t i o n s f o r re p o rtin g

6.

15

on t h e

l o n g - f o r m ........................................IS

Howt o com pute y o u r t a x by t h e l o n g - f o r m . .

THRIFT:

19

HOW TO SAVE AND INVEST PART OF YOUR

INCOME.........................................................................................

.

21

1.

Howt o sa v e e f f e c t i v e l y .................................

21

2.

Howt o make a sound in v e s tm e n t . . . . . . .

22

3*

Howt o i n v e s t i n s e c u r i t i e s ,

s t o c k s , and

b o n d s ...........................................................................................23 How t o manage y o u r s t o c k ex ch an g e t r a n s ­ a c t i o n s fro m 6.

BANK BOOKS: YOUR BANK

th e

t i c k e r ta p e re a d in g . . . .

2^

HOW TO CARRY ON BUSINESS WITH ................................

29

1.

Howt o f i g u r e y o u r i n t e r e s t r a t e s ......................... 29

2.

Howt o com pute y o u r c h e c k in g c h a r g e s . . . .

3°

3*

Howt o r e c o n c i l e y o u r b an k s t a t e m e n t . . . .

30

iv CHAPTER 7»

PAGE

HEALTH:

HOW TO COJNT THE CALORIES AND VITAMINS

NEEDED IN YOUR PIET 1.

..........................................................33

How t o c o u n t f o r m a i n t a i n i n g y o u r i d e a l w e ig h t . . . .

8.

.

.................................

. . . . . . .

2.

How~to~hount f o r r e d u c i n g y o u r w e ig h t

3.

How t o c o u n t

SURVEYING: 1.

f o r g a i n i n g w e ig h t

3g

How t o l o c a t e t h e f i r s t s t a t i o n from t h e .........................................................

3&

How t o l o c a t e t h e s e c o n d s t a t i o n r e c o r d e d on t h e r e c o r d map.

3*

3^

......................... 33

HOW TO SUBDIVIDE PARCELS OF LAND . .

re fe re n c in g p o in t. 2.

. . .

33

............................................^-1

How t o r u n y o u r t r a v e r s e t o l o c a t e th e o t h e r s t a t i o n s w h e th e r o r n o t t h e la n d i s l e v e l ...................................................

k*

^1

How t o d e t e r m i n e t h e b e s t d i v i d i n g p o i n t s fo r c re a tin g

BIBLIOGRAPHY

new a r e a s of l a n d .................................... k-2 ............................

1^5

v TABIE OF FIGURES FIGURE

PAGE

1.

INCOME TAX F O R M .................................................................

2.

TICKER T A P E ...................................................................................... 25

3-

ILLUSTRATION OF HOW TO SUBDIVIDE L A N D ....................... 39

.

17

vi TABLE OF CHARTS CHART 1.

PAGE

SHOWS LINE OF DECLINATION FOR YOUR LOCALITY . * . 40

v ii PREFACE Some c o n c e p t s o f m a th e m a tic s can he a p p l i e d t o e v e r y ­ d a y l i f e a c t i v i t i e s and s i t u a t i o n s .

I t i s th e p u r p o s e o f

t h i s c o u r s e t o make s u c h a p p l i c a t i o n s . I f you would l i k e t o make y o u r know ledge o f m athem at­ i c s f u n c t i o n t o h e l p you make l i f e a d j u s t m e n t s , t h i s c o u r s e s h o u l d h e l p you t o do s o . I n w r i t i n g t h i s s y l l a b u s an e f f o r t h a s been made t o c o v e r s i t u a t i o n s r e l a t i v e t o t h e home f i n a n c e s . I f you a r e a s t u d e n t you w i l l f i n d t h i s s y l l a b u s q u i t e d i f f e r e n t fro m t h o s e u s e d i n t h e t r a d i t i o n a l c l a s s r o o m .

1 CHAPTER 1 .

CAR FINANCES

HOW TO REDUCE’THE COST OF OWNING AND OPERATING YCUR CAR A.

MOTIVATION:

B e n e f i t s w h ich you may r e c e i v e I f you

le a r n to p r a c t i c e t h r i f t re g a rd in g your o a r . 1-

FINANCIAL GAIN:

C ar e x p e n s e s am ount t o a s i z e ­

a b l e sum o v e r a p e r i o d o f t i m e .

I t i s a good

r u l e ' t o sa v e money * 2.

ECONOMY OF TIME:

I f you c a r se ld o m n e e d s r e p a i r ,

you w i l l n o t h a v e t o w a s te tim e i n t a k i n g i t t o th e g a ra g e . 3.

GREATER USE:

Y our c a r w i l l be n e a r l y a lw a y s

a v a i l a b l e f o r your t r a n s p o r t a t i o n and p l e a s u r e . B.

DIRECTIONS:

Key p o i n t s t o g u id e you w i t h r e s p e c t t o

your c a r . 1.

How t o a v o i d th e e x c e s s i v e l o s s o f money on y o u r car. a.

Compute t h e d e p r e c i a t i o n o f s e v e r a l o t h e r c a r s o f t h e same make o v e r a p e r i o d o f y e a r s and e s t i m a t e y o u r p r o b a b l e d e p r e c i a t i o n fro m y e a r to y e a r.

b.

From t h e y e a r l y d e p r e c i a t i o n s c a l e c h o o s e t h e b e s t tim e t o s e l l .

How t o r e d u c e y o u r g as c o n s u m p tio n . a.

Keep a r e c o r d o f y o u r s p e e d o m e te r r e a d i n g .

b.

F i g u r e y o u r a v e r a g e m ile a g e when a b o u t one o r two g a l l o n s o f g a s h av e b ee n d r i v e n o u t o f th e ta n k .

The am ount o f g a s u s e d can b e

m e asu red by r e f i l l i n g a p e r f e c t l y f u l l t a n k . c.

From t h e above d a t a you have a s a m p lin g o f th e c o n d itio n of y o u r c a r; ta k e i t to a m ech anic f o r a c h e c k - u p on i t s c o n d i t i o n .

How t o p r o l o n g t h e l i f e o f y o u r t i r e s . a.

Have w h ee ls a l i g n e d p r o p e r l y w it h o u t t o e - i n or to e -o u t.

b.

Have w h e e ls a d j u s t e d f o r cam ber an d

c.

Have b r a k e s a d j u s t e d .

c a ste r.

How t o k e e p down t h e m il e a g e on y o u r c a r . a.

Go t h e s h o r t r o u t e s .

b.

B u d g e t y o u r m ile a g e w i t h

resp ect

to n e c e ssa ry

t r i p s and p l e a s u r e t r i p s . How t o f i g u r e th e m ile a g e r e m a i n i n g i n y o u r t i r e s . a.

M easure t h e t r e a d t h i c k n e s s o f a new t i r e w i t h a t h i n s t e e l v e s t p o c k e t r u l e and t h e n m e a su re y o u r t i r e s i n t h e same way.

b.

S u b tra c t each of your t i r e tre a d th ic k n e s s e s fro m t h e new t i r e

th ic k n e ss .

c.

Keep a r e c o r d o f y o u r t i r e m ile a g e fro m t h e b e g in n in g of i t s u s e .

d.

S e t up t h e p r o p o r t i o n ; p r e s e n t t h i c k n e s s i s t o new t i r e t h i c k n e s s a s p r e s e n t t i r e m ile a g e i s t o new t i r e m il e a g e .

S o lv e f o r new t i r e

m ile a g e . 6.

How t o c l a i m g a s o l i n e t a x . a.

Keep a r e c o r d o f t h e g a l l o n s of g as t h a t you buy.

b.

Compute t h e t a x w hich you p a y on g as f o r one y ear.

c.

C laim t h i s t a x a s a d e d u c t i o n on y o u r income ta x .

7-

SOURCES FOR THIS CHAPTER:

Where to g e t fu rth er

a s sista n c e . a.

M e c h a n ic s; g a r a g e f lo o r m e n .

b.

Such o r g a n i z a t i o n s a s t h e A m erican A u to m o b ile A s s o c i a t i o n ; t h e A m erican S a f e t y C o u n c il.

c.

U s e r s g u i d e s ; m a g azin es su ch a s th e Consumers G u id e .

d. C.

O f f i c e s of th e c o l l e c t o r of i n t e r n a l r e v e n u e .

ACTIVITY ASSIGNMENTS:

P r o j e c t s t o make you c o n s c i o u s

o f ways t o r e d u c e owning and o p e r a t i n g c o s t s o f y o u r

1.

CHECKING-:

Take y o u r c a r t o a g a r a g e an d h av e

them r o a d - c h e c k y o u r c a r .

C o n s u lt th e f lo o r m a n

a b o u t a n y t h i n g w h ich you may b e l i e v e t o be w rong. A f a u l t y c a r c o s t s more t o o p e r a t e i n t h e lo n g run .

G et h i s e s t i m a t e o f t h e c o s t f o r t h e c o r ­

re c tio n . 27

'SERVICING:

Go o v e r y o u r c a r and f i x a l l m in o r

d e f e c t s y o u r s e l f and c l e a n an d wax.

Compute how

much you sa v e d i n money by d o in g t h i s work y o u r ­ se lf. 3*

SERVICING:

Check o v e r a f r i e n d ' s c a r and f i x a l l

m in o r d e f e c t s .

C lean i t and wax i t .

Compute how

much y o u r f r i e n d h a s sa v e d b y t h i s s e r v i c e . D.

EVALUATION:

A c h e c k -u p on how w e l l you t a k e c a r e o f

your c a r . 1.

TRUE-FALSE:

P l a c e an X i n t h e c o r r e c t s p a c e f o r

tru e o r f a ls e . T a.

F

( ) ( ) You s h o u ld p a y $ 1 . 3 ^

5 i g a llo n s

of

g a s o l i n e a t $ . 2^ p e r g a l l o n . b . ( )(

) You s h o u ld p a y $ 2 .1 0 f o r 1§ g a l l o n s o f o i l w hich c o s t s you $*35

2.

BEST ANSWER:

q u a rt.

P l a c e t h e number o f t h e b e s t a n s w e r

i n th e p a r e n t h e s e s .

5 a.

( ) I f you s h o u ld b u y a $ 1 ,0 0 0 c a r on tim e f o r one t h i r d down you would p a y :

( 2 ) #350. b.

( 3 ) #331-

W

(1 ) $335*

f333*3i*--

( ) I f you a v e r a g e d 15 m i l e 3 p e r g a l l o n f o r c i t y d r i v i n g t o go 100 m i l e s you s h o u ld burn:

(1 ) 6 g a l l o n s .

( 3 ) 5- V ^ g a l l o n s . (5) 7 g a llo n s.

(2 ) 7 g a l l o n s .

(4=) 6- 2 /3 g a l l o n s .

6 CHAPTER 2 .

FAMILY BUDGET

HOW TO BUDGET YOJR INCOME A.

MOTIVATION:

A d v a n ta g e s o f a- s t a t e m e n t o f th e f i n a n ­

c i a l n ee d o f y o u r home* 1.

FREEDOM FROM WORRY:

The f a m il y w i l l he h a p p i e r .

2.

FINANCIAL SECURITY:

T h e re w i l l be money a v a i l a b l e

f o r a l l t h e t h i n g s i n c l u d e d i n y o u r b u d g e t i f you fo llo w your b u d g et. 3.

MORE ECONOMICAL PURCHASES:

You may t a k e a d v a n ta g e

o f a l l b a r g a i n s , q u a n t i t y d i s c o u n t s , and d i s c o u n t s f o r p ro m p t p a y m en t. 4-.

HIGHER STANDARD OF LIVING:

By c o n t r o l o f t h e h u d -

g e t you may have a h i g h e r s t a n d a r d o f l i v i n g . B.

DIRECTIONS:

Key p o i n t s t o g u id e you i n m aking a b u d ­

g e t o f y o u r in c o m e . 1.

How t o d e t e r m in e y o u r a c t u a l r e q u i r e m e n t s . a.

Keep t r a c k i n a c l a s s i f i e d fo rm o f w hat you sp e n d f o r a m onth.

b.

L i s t th e e x p e n d i t u r e s w h ich w ere n o t n e c e s ­ sary .

c. 2.

L i s t t h e e x p e n d i t u r e s w hich were n e c e s s a r y .

How t o d i s t r i b u t e y o u r m o n th ly income i n t o a l l o t ­ m ents f o r s a v i n g s and c u r r e n t e x p e n s e s .

7 a.

D e te rm in e y o u r income f o r t h e y e a r , s a l a r y , c o m m is s io n s , i n t e r e s t s , and g i f t s , and a r r i v e a t a m o n th ly a v e r a g e .

b.

D iv id e t h e m o n th ly income i n t o a l l o t m e n t s f o r s a v i n g s and c u r r e n t l i v i n g e x p e n s e s u n d e r th e fo llo w in g h ea d in g s: (1)

S a v in g s:

R e g u la rly p u t a s id e a d e f i n i t e

sum. (2 )

S h e lte r: re n t.

Own y o u r home; buy on tim e ; o r ( T w e n ty - f iv e p e r c e n t o f m o n th ly

income i s i d e a l r e n t . ) (3)

F ood:

Make y o u r fo o d b u d g e t by t h e week;

i t may am ount up t o t h i r t y - s i x and f o u r t e n t h s p e r c e n t of t h e m o n th ly income a s a n a tio n a l av erag e. (*0

C lo th in g :

A llo w f o u r t e e n and s i x - t e n t h s

p e r cen t f o r c lo th in g as a n a tio n a l ave­ rage . (5)

M e d ic a l c a r e :

A llow f i v e and o n e - h a l f

p e r c e n t f o r m e d ic a l c a r e . (6)

P e rso n a l o p e ra tin g :

I n c l u d e income t a x ,

h e a l t h an d a c c i d e n t i n s u r a n c e ,

la u n d ry ,

c l e a n i n g , p r e s s i n g , c a r f a r e , an d s o on .

5 (7 )

A dvancem ent o r d e v e lo p m e n t:

Set a s id e a

fu n d of a p p r o x i m a t e l y tw e n ty p e r c e n t f o r s p e c i a l and s e a s o n a l e x p e n s e s beyond th e bare n e c e s s itie s o f l i f e c h a rity ,

su ch a s c h u r c h ,

c l u b s , b o o k s , m a g a z in e s , new s­

p a p e r s , e d u c a t i o n , g i f t s , a u t o s , arausem e n ts, v a c a t i o n , e n t e r t a i n i n g .

C.

ACTIVITY ASSIGNMENTS:

Some lea rn in g exp erien ces to

h elp you acq u ire s k i l l in budget making. 1.

Make a b u d g e t o f y o u r in c o m e.

2.

H elp a f r i e n d b u d g e t h i s in c o m e .

3*

Draw up a b u d g e t f o r a, y e a r l y income o f $3>500 a f a m i l y o f f o u r p e o p l e who own t h e i r home.

D.

EVALUATION:

Samples of ev a lu a tio n procedures to help

you budget your income. 1.

THUE-FALSE:

P l a c e an X i n t h e / c o r r e c t s p a c e f o r

tru e or f a ls e . T a.

( )(

F ) You s h o u ld k ee p t r a c k of what you spen d sy ste m a tic a lly .

b . ( )(

) You s h o u ld p u t a s i d e r e g u l a r l y a d e f i n i t e sum of money.

c.

( )(

) You s h o u ld a l l o c a t e y o u r income on a p e r ­ c e n ta g e b a s i s f o r th e ite m s i n y o u r b u d g e t .

BEST ANSWER:

P lace the number o f the b e st answer

in the p a ren th eses. a.

() I f you should save $15 per week in one year you w i l l have: $ 7 SO.

b.

( 1) #755.

( 2) $7 7 5 -

(3)

( ^ ) #7^5-

() T w enty-five per cent of an income of $760 is : $180.

( 1) #185-

( 2 ) $176.

(3) $190.

(40

10 CHAPTER 3-

OWNING- VERSUS RENTING

.HOW TO CHOOSE BETWEEN OWNING AM) RENTING YOUR HOME A.

MOTIVATION:

S u g g e s t i o n s w hich w i l l h e l p you i n making

d e c i s i o n s a b o u t t h e m anner I n w hich you a r e h o u s e d . 1.

LOSS OP OPPORTUNITY:

V a lu a b le tim e may be p a s s i n g

w h ile you a r e making no p r o p e r c h o i c e . 2.

LOSS OF MONEY:

I t may be more p r o f i t a b l e t o you

t o make a d i f f e r e n t c h o i c e a b o u t owning o r r e n t ­ i n g y o u r home. 3.

.

SATISFYING NEEDS!

T h ere may be a b e t t e r a d j u s t ­

ment b e tw e e n y o u r n e e d s an d w an ts w ith r e s p e c t t o your ca se . B.

DIRECTIONS:

R u le o f thumb t h a t \?1I1 h e l p you i n d e ­

c i d i n g w h e th e r t o own o r t o r e n t . 1.

How t o o b t a i n t h e p r o p e r l o c a t i o n o f a home. a.

D e te rm in e i n te r m s o f d i s t a n c e s th e l o c a t i o n o f t h e house you h av e s e l e c t e d o r p l a n t o b u i l d r e l a t i v e t o th e zo n e s o f zo n in g o r d i ­ nances p e r ta in in g to a p a rtm e n ts, b u s in e s s , and i n d u s t r i a l d e v e lo p m e n t.

b.

M easure th e a p p r o x im a te d i s t a n c e t o c h u r c h e s , s c h o o l s , s h o p p in g f a c i l i t i e s ,

re c re a tio n a l

11 fa c ilitie s,

c o n v e n ie n c e t o w ork i n c l u d i n g

tra n s p o rta tio n c o s ts. c.

Compare y o u r income w i t h t h e s t a n d a r d s o f l i v ­ i n g i n t h e com m unity.

d.

E s t i m a t e t h e p r o b a b l e Income o f t h e ty p e o f p e o p l e who l i v e i n t h e com m unity.

e.

F i g u r e t h e t o t a l p r o b a b l e r a i n f a l l on t h e l o t and i n v e s t i g a t e w h e th e r t h e a r e a i s s u b j e c t to flo o d s.

f.

D e te rm in e by m e asu rem e n ts t h e d i s t a n c e t h e h o u s e w hich you have s e l e c t e d o r p l a n t o b u i l d i s fro m t h e s t r e e t .

g.

E s t i m a t e t h e e x t e n t t o w hich t h e n e ig h b o rh o o d i s d e v e l o p i n g and t h e ty p e o f new d e v e lo p m e n ts r e l a t i v e t o t h e ty p e o f h o u se you h av e s e l e c t e d o r p la n to b u ild .

2.

How t o com pare t h e c o s t o f r e n t i n g w i t h t h e c o s t o f owning y o u r home. a.

F in d t h e a p p r o x im a te t o t a l r e n t t h a t w ould b e p a i d o v e r t h e same p e r i o d o f y e a r s a s i t would t a k e t o p ay f o r t h e h o u se .

b.

I f you p l a n t o b u y , t a k e two o r two and a h a l f ti m e s y o u r a n n u a l income a s t h e amount w hich you may s a f e l y i n v e s t i n a h o u se and l o t .

o.

F ig u re th e t o t a l o f a d d i t i o n a l p r e lim in a ry c o s ts such as a r c h i t e c t 's fe e ,

in sp e c tio n

f e e s , in su ra n c e , i n t e r e s t d u rin g c o n s tru c tio n i f you "buy on t i m e , and b a s i c h o u s e h o ld e q u i p ­ ment . d.

D e te rm in e y o u r a n n u a l s t a b l e incom e.

e.

D e te rm in e w h e th e r i t i s c h e a p e r f o r you t o own o r t o r e n t by co m p arin g t h e c o s t s .

3*

How to choose between purchasing an e x is tin g

house

an d b u i l d i n g a new o n e . a.

I n q u i r e i n t o t h e ag e o f t h e h o u s e and compare i t s v a l u e when i t was new w i t h i t s p r e s e n t v a l u e on t h e b a s i s o f d e p r e c i a t i o n .

b.

M easure t h e s t o r a g e s p a c e i n c l o s e t s , a t t i c s , an d b a se m e n t o f t h e e x i s t i n g h o u se an d t h e s i z e o f th e ro om s.

c.

O b ta in an e s t i m a t e o f t h e c o s t of b u i l d i n g a h o u s e w hich you w ould c h o o se a c c o r d i n g t o y o u r n e e d s an d p r e f e r e n c e s .

d.

F ig u re th e c o s t o f co n n e c tin g to p u b lic u t i l ­ i t y s e r v i c e s i f you a r e t r y i n g t o d e c id e on b u ild in g .

e.

Compare th e c o s t o f an e x i s t i n g house w i t h b u i l d i n g one t o s u i t y o u r n e e d s and p r e f e r ­ ences •

13 f.

I n b u i l d i n g a new house g iv e c o n s i d e r a t i o n t o t h e em ploym ent o f a n a r c h i t e c t .

F ig u re th e

c o s t of h is s e r v ic e s . g.

M easure t h e s i z e o f t h e r o o m s 't o s e e i f th e y a r e a d e q u a te .

h.

O b ta in an e s t i m a t e o f t h e c o s t o f b u i l d i n g a h o u se w h ich you w ould c h o o se a c c o r d i n g t o y o u r n e e d s and p r e f e r e n c e s .

i»

Compare t h e p r i c e o f p u r c h a s i n g an e x i s t i n g h o u se and. t h e c o s t o f b u i l d i n g a new h o u se and make y o u r d e c i s i o n .

C.

ACTIVITY ASSIGNMENTS:

Some l e a r n i n g e x p e r i e n c e s t o

e n h a n c e y o u r s k i l l i n m aking a c h o i c e b e tw e e n owning an d r e n t i n g a home. 1.

F in d t h e sum o f t h e money w hich you w ould have t o sp e n d on r e n t i n g a h o u se t o s u i t y o u r n e e d s a f t e r you h ave f i g u r e d t h e c o s t o f b u y in g an e x i s t i n g h o u se o r b u i l d i n g a new one t o co n fo rm t o y o u r n e e d s and make a c h o i c e .

2.

Make a c h o i c e b e tw e e n owning and r e n t i n g a home a f t e r you h av e made a th o r o u g h s t u d y o f t h e p r o b ­ lem and r e p o r t y o u r f i n d i n g s .

inD.

EVALUATION:

Sam ples o f ways I n w h ich you may t e s t

y o u r a b i l i t y i n making a c h o i c e b e tw e e n owning; and r e n tin g ; a home. 1*

TBUE-FALSE:

P l a c e an X i n t h e c o r r e c t s p a c e f o r

tru e or f a ls e . T a.

( )(

F ) You s h o u ld p a y a maximum o f t w e n t y - f i v e p e r c e n t o f y o u r incom e f o r r e n t i n g a house.

h . ( )(

) You s h o u ld f i g u r e d e p r e c i a t i o n c o s t s i n b u y in g a home.

2.

BEST ANSWER:

P l a c e t h e number o f th e b e s t a n s w e r

in th e p a r e n th e s e s . a.

( ) The i n t e r e s t p ay m en ts on a $ 1 ,0 0 0 15 y e a r home lo a n a t 5% d e c r e a s e s m ost a b r u p t l y th e :

( 1 ) 15 t h y e a r .

13t h y e a r.

(2 ) l^ th y ear.

(3)

(^ ) 12t h y e a r .

b . ( ) You s h o u ld buy a h ou se t h a t has b e e n : A pproved f o r a b a n k l o a n . lo c a te d . c o n d itio n .

(3 ) In su red .

(1 )

(2 ) P ro p e rly

(k-) K ept i n

good

15 CHAPTER U-.

INCOME TAX

HOW TO PREPARE XOUR INCOME TAX RETURNS A.

MOTIVATION:

A pproved s u g g e s t i o n s t o r e d u c e y o u r i n -

come t a x e s . 1*

FEWER WORRIES:

You c a n a v o i d l a s t m in u te r u s h e s

in f i l i n g . 2.

FREEDOM FROM GUILT:

You may c o o p e r a t e w i t h t h e

g o v e r n m e n t s income t a x p l a n . 3.

FINANCIAL GAIN:

4-.

EMPLOYMENT:

V a lu a b le r e f u n d s a r e r e c e i v e d .

You may r e n d e r s e r v i c e s t o o t h e r s by

f i l i n g o u t t h e i r incom e t a x r e p o r t s . 5.

GREATER SATISFACTION:

You may f i g u r e i t o u t y o u r ­

s e lf. B.

DIRECTIONS:

H e l p f u l i n f o r m a t i o n on how t o p r e p a r e

y o u r U. S. incom e t a x r e t u r n i f y o u r income i s w h o lly fro m s a l a r i e s , w ages, d i v i d e n d s , an d I n t e r e s t . 1.

How t o c h o o s e y o u r r e t u r n f o r lo w e s t t a x . a.

I f y o u r n o n b u s in e s s d e d u c t i o n s a r e more t h a n t e n p e r c e n t o f y o u r income i t e m i z e y o u r d e ­ d u c t i o n s on t h e l o n g - f o r m .

(S e e p ag e 3

F ig u re 1 .) b.

F o r s i m p l i c i t y i f y o u r n o n b u s in e s s d e d u c t i o n s a r e t e n p e r c e n t o r l e s s u s e e i t h e r s h o r t form 104-0 o r lO^OA.

c.

D o n 't f i l e a j o i n t r e t u r n i f

t h e com bined s a l ­

a r y o f h u sb and an d w if e e x c e e d s

sin c e

t h e law f o r b i d s s u c h f i l i n g . 2.

How t o c o u n t y o u r e x e m p tio n s . a.

Count t h e t o t a l o f t h e f o l l o w i n g p e o p l e : w if e an d c l o s e r e l a t i v e s r e c e i v i n g o v e r

your one-

h a l f o f h i s o r h e r s u p p o r t from y o u . b.

I f h u sb a n d and w ife h ave s e p a r a t e income file

an d

s e p a r a t e r e t u r n s , d o n ' t c l a im t h e same

e x e m p tio n s on b o t h r e t u r n s . c.

I f you f i l e a j o i n t r e t u r n l i s t d e p e n d e n t r e l a t i v e s o f b o t h b u sb a n d and w i f e .

3*

How to fig u r e your income. a.

F in d t h e sum o f a l l income f o r t h e y e a r

from

w ages, s a l a r i e s , b o n u s e s , c o m m issio n s, t i p s , and o t h e r c o m p e n s a tio n , b e f o r e p a y - r o l l d e ­ d u c tio n s f o r ta x e s , dues, in s u ra n c e , bonds, and so o n . b.

I f you r e c e i v e d any o t h e r incom e such a s i n ­ t e r e s t , u n l e s s w h o lly exempt from t a x a t i o n , add t h i s amount t o y o u r in c o m e .

(See p ag e 1

of F ig u re 1 .) 4.

How t o d e t e r m i n e y o u r t a x b y t h e s h o r t form 10^0. a.

F in d y o u r t a x b y t h e t a x t a b l e on t h e b a c k o f t h e fo rm .

(S ee F i g u r e 1 . )

, 1949, and ending

_ _ _ _ _ _ _ _ _ _ _ , 1950

_

For calendar year 1949 or fiscal year beginning

EMPLOYEES: Instead of this form, you may use Form 1Q40A if your total income was less than $5,000, consisting wholly of wages shown on Forms W-2, or of such wages and not more than $100 of other wages, dividends, and interest. _______

N am e

(PLEASE PR IN T .

HOME ADDRESS

- --------------------------

File Code Serial N o._____________________

(Cashier’s Stamp)

-....... -................-..............................................

(City, tow n, or post office)

(State)

(Postal zone number)

S o c ia l S e c u rity N o . ________________________________

O c c u p a tio n

List names of other close relatives (as defined in Instructions) with 1949 incomes of less than $500 who received more than one-half of their support from you in On lines a and b below— Write 1 if neither 65 nor blind; Write 2 if either 65 or blind; Write 3 if both 65 and blind.

Check below whether you (or your wife) were at the end of your taxable y e a r -

Name (please print)

65 OR OVER

_______ _____ ______ __________ ______ Your name Wife’s (or ---------------------------husband’s) name------- -- ------------

BLIND

Yes □

No □

Yes □

N oD

a. Number of exemptions for you

Yes □

No □

Yes □

N oD

b. Number of her (his) exemptions

Relationship

Name of Other Dependent Relative

Enter here total number of exemptions claimec

___ _____

Address—If different from yours

(yours and your w ife’s plus one for each dependent listed above)-^ |

2 . Enter your total wages, salaries, bonuses, commissions, and other compensation received in 1949, BEFORE PAY-ROLL DEDUCTIONS fortaxes, dues, insurance, Print Employer’s Name

-..............

Street and number or rural route)

"1. List your own name. If married and your wife (or husband) had no income, or if this is a joint return

Your fticome

Do not write in these spaces

If this is a joint return of husband and wife, use first names of both)

(PLEASE PR IN T .

Your txemp tions

1949

U. S. INDIVIDUAL INCOME TAX RETURN

FORM 1040

U .S . T re a s u ry D e p a rtm e n t In te rn a l R evenue Service

|

bonds, etc. Also enter amount of income tax withheld. Persons claiming traveling or reimbursed expenses, see Instructions.

Where Employed (City and State)

Amount of Income Tax Withheld

Enter totals_ $ 3. Enter here the total amount of your dividends_____________________________________ 4. Enter here the total amount of your interest (including interest credited on savings accounts; also

Total Wages

$-

interest from Government obligations unless wholly exempt from taxation)______________________________

5. If you received any other income, give details on page 2 and enter the total here___ 6. Add income shown in items 2, 3, 4, and 5, and enter the total here__________________

Howto figure the tax

Tax due or refund

IF YOUR INCOME WAS LESS THAN $5,000.—You may find your tax In the table on page 4. This table allows about 10 percent of your total income for charitable contributions, interest, taxes, medical expenses, etc. If such deductions exceed 10 percent, it will usually be to your advantage to itemize them and .compute your tax on page 3.

IF INCOME WAS $5,OOO.OR MORE.— Do not use tax table. Compute tax on Pa2e 3. Use standard deduction or itemize deductions, whichever is to your advantage. HUSBAND AND WIFE.—For split-income benefits, file a joint return. If filing separate returns, and one itemizes deductions, both must itemize.

7. Enter your tax from table on page 4, or from line 18, page 3_____ H ow much have you paid on your 1949 income tax? (A ) By tax withheld (in item 2, above). Attach Original Forms W -2- $_________ (B ) By payments on 1949 Declaration of Estimated Tax________

$-

Enter total here

9. If your tax (item 7) is larger than payments (item 8), enter BALANCE OF TAX DUE here____ This balance of tax due must be paid in full with return.

10. If your payments (item 8) are larger than your tax (item 7), enter the OVERPAYMENT here... Check ( |/ ) whether you want this overpayment: Refunded to you □ ; or Credited on your 1950 estimated tax □ Do you owe any prior year Federal tax for which you have been billed?_ _ _ _ _ _ _ _ _ _ _ (Yes or N o )

If you filed a return for a prior year, state latest year

County in which you reside----------------------------------------- —

Where filed___________________________________

Is your wife (or husband) making a separate return for 1949?

To which Collector’s office did you pay amount claimed in item 8 (B), above?

(Yes or N o )

If “ Yes,” write her (or his) name

______________________

I declare under the penalties of perjury that this return (including any accompanying schedules and statements) has been examined by me and to the best of

(Signature of person, other than taxpayer, preparing this return)

(N am e of firm or employer, if any)

\1N

(Signature of taxpayer’s wife or husband if this is a joint return)

(JlglldlU lC Ul U A p a ^ i o W iu va Xiujomiu **

(D ate) (D ate)

T o assure any benefits of split-income provisions, husband and wife must include all their income, and BOTH MUST SIGN, even though only one has income.

b.

E n t e r t h e t a x you f i n d t h e r e i n ite m 7> Page 1 o f t h e t a x form*

5-

How t o c l a i m n o n b u s in e s s d e d u c t i o n s f o r r e p o r t i n g on t h e l o n g - f o r m . a*

Compute f i f t e e n p e r c e n t o f y o u r t o t a l income an d c l a im t o t a l c o n t r i b u t i o n s t o r e l i g i o n s , c h a r ita b le , e d u c a tio n a l, s c i e n t i f i c ,

or l i t ­

e r a r y o r g a n i z a t i o n s , an d o t h e r s i m i l a r o r g a n ­ i z a t i o n s up t o f i f t e e n p e r c e n t o f y o u r t o t a l in c o m e . b.

D e d u c t i n t e r e s t p a i d d u r i n g t h e y e a r on y o u r p e rso n a l d e b ts.

c.

D ed u c t n o n - F e d e r a l t a x p a i d by you e x c e p t t h o s e a s s e s s e d on t h i n g s w h ic h t e n d t o i n ­ c re a s e th e v a lu e o f your p r o p e r ty .

d.

D ed u c t l o s s e s fro m f i r e ,

s to r m , o r o t h e r

c a u s e o r t h e f t o v e r w hich you have no co n­ tro l. e.

Don’ t d e d u c t l o s s e s due t o m i s l a y i n g an a r ­ t i c l e o r to your w il f u l a c t of n e g lig e n c e .

f.

D educt t h e n e t m e d ic a l and d e n t a l e x p e n s e s w h ich e x c e e d f i v e p e r c e n t o f y o u r a d j u s t e d g r o s s in com e; r e d u c e t h i s d e d u c t i o n by an y c o m p e n s a tio n you r e c e i v e f o r t h e s e e x p e n s e s o f y o u r s o r i f any d e p e n d e n t s .

19 g.

D ed u c t any m i s c e l l a n e o u s e x p e n se a l lo w e d by la w .

6.

h.

Ite m iz e each d e d u c tio n .

i.

F in d t h e t o t a l o f a l l n o n b u s in e s s d e d u c t i o n s .

How t o com pute y o u r t a x b y t h e l o n g - f o r m . a.

S u b t r a c t t h e t o t a l o f t h e n o n b u s in e s s d e d u c ­ t i o n s from y o u r a d j u s t e d g r o s s income t o ob­ t a i n y o u r n e t in co m e.

b.

S u b t r a c t s i x h u n d re d d o l l a r s tim e s y o u r t o t a l e x e m p tio n s fro m y o u r n e t incom e.

c.

F in d o n e - h a l f o f i t e m k above and f i g u r e y o u r t e n t a t i v e t a x by t h e t a x r a t e s c h e d u l e .

d.

Compute a c c o r d i n g t o i t e m e l e v e n o f t h e l o n g fo rm t h e p e r c e n t a g e o f y o u r t e n t a t i v e t a x w h ich you must s u b t r a c t from i t .

e.

M u l t i p l y t h e am ount i n i t e m d above by two to fin d your ta x .

f. C.

F i l l o u t c o m p le t e ly t h e lo n g - f o r m .

ACTIVITY ASSIGNMENTS:

P r o j e c t s t h a t w i l l h e l p you

d e v e lo p t h e a b i l i t y t o f i g u r e Income t a x e s . 1.

F ig u r e an e s t i m a t e o f y o u r incom e t a x f o r t h e y ear.

2.

Compute t h e income t a x o f a f r i e n d .

3*

F ile a j o i n t ta x r e tu r n fo r a f r ie n d .

if,

Subm it y o u r incom e t a x r e t u r n f o r t h e c a l e n d a r y ear.

5* D»

F i l l o u t y o u r j o i n t income t a x r e t u r n ,

EVALUATION:

Sam ples o f ways i n w hich y o u r m a s te r y of

incom e t a x f i l i n g ; may be c h e c k e d , 1.

TRUE-FALSE:

P l a c e an X i n t h e c o r r e c t sp a c e f o r

tru e or f a ls e . T a,

F

( ) ( )You s h o u ld f i g u r e y o u r t a x b o t h t h e s h o r t way an d t h e lo n g way*

b.

( )( ) On t h e lo n g - f o r m you s h o u l d i t e m i z e your d e d u c tio n s.

2.

BEST

ANSWER: P l a c e t h e number o f t h e b e s t a n sw e r

in th e p a r e n th e s e s . a.

( ) I f you a r e i n t h e lo w e s t income t a x b r a c k e t you s h o u ld u s e f o r t h e r a t e : ( 2 ) 20$ .

( 3 ) 10$*

( 1 ) 22$ .

(4) 6$ .

b . ( ) I f y o u r a c t u a l t a x i s $ 2 1 3 .2 6 and you have p a i d by w i t h h o l d i n g t a x $ 2 3 3 - 5 ° y o u r o v e r ­ p ay m en t i s : $63. 30.

( 1 ) $65-

(4) $ 6 0 , 4 3 .

( 2 ) $ 6 5 *2 4.

(3)

21 CHAPTER 5 .

THRIFT

HOW TO SAVE AND INVEST PART OF YOUR INCOME A.

MOTIVATION:

Rewards t h a t may come fro m s a v i n g and

i n v e s t i n g y o u r money. 1.

A FEELING- OF SECURITY:

You may g u a r d f i n a n c i a l l y

your fu tu re 2.

PROTECTION FOR YOUR DEPENDENTS:

You may make y o u r

r e l a t i v e s more s e c u r e . 3.

SOCIAL APPROVAL:

You may become an i n f l u e n t i a l

p e r s o n i n y o u r com m unity. B.

DIRECTIONS:

G-uiding p r i n c i p l e s t h a t w i l l h e l p you t o

s a v e and t o i n v e s t . 1*

How t o s a v e e f f e c t i v e l y . a.

Make a b u d g e t o f y o u r in co m e.

b.

B e g in e a r l y t o s a v e .

c.

C o n s id e r r e g u l a r s a v in g a s much a n o b l i g a t i o n a s t h e p a y in g o f r e n t .

d.

Save tw e n ty p e r c e n t of y o u r income i f p o s ­ sib le .

e.

Shun b u y in g on t h e i n s t a l l m e n t p l a n .

f.

You s h o u ld sa v e a t l e a s t t e n p e r c e n t o f y o u r in c o m e .

g.

D o n 't l i v e beyo nd y o u r m ean s.

h.

P l a c e y o u r money i n a s e c u r e p l a c e su ch a s a "bank o f i n s u r e d d e p o s i t s o r a p o s t o f f i c e *

i.

Don’ t bo rrow money when i t i s a v o i d a b l e .

j.

D e p o s i t y o u r money i n s u c h a manner t h a t i t i s n o t so e a s i l y a c c e s s i b l e when you w ant i t .

k. 2.

D on’ t f a l l b a c k upon y o u r s a v i n g s t o o h e a v i l y .

How t o make a sound i n v e s t m e n t . a.

B e f o r e you i n v e s t i n v e s t i g a t e .

b.

Don’ t b e l i e v e anyone a l i v e c a n g u a r a n t e e p r o f ­ its

c.

on i n v e s t m e n t s .

You s h o u ld i n v e s t i g a t e t h e r e p u t a t i o n o f a b u s i n e s s c o n c e r n b e f o r e p u t t i n g y o u r money in to i t .

d.

N ever s i g n an y docum ent t h a t you have n o t read c a re fu lly .

e.

Don’ t i n v e s t on a p r o m is e o f l a r g e p r o f i t s in a s h o r t tim e .

f.

B e f o r e you i n v e s t i n p r o p e r t y have t h e t i t l e search ed .

g.

I n b u y in g p r o p e r t y make a t e s t o f how much money a b a n k w i l l l e n d on i t .

h.

G uard alw ay s a g a i n s t b u y in g a n y t h i n g i n a h u rry .

How t o i n v e s t i n s e c u r i t i e s , s t o c k s , and b o n d s . a.

D o n 't buy ev e n t h e b e s t s e c u r i t y u n t i l you have a few h u n d re d d o l l a r s i n t h e s a v i n g s b a n k , l e t u s sa y f i v e h u n d r e d .

b.

A f t e r you have sa v e d f i v e h u n d re d d o l l a r s i n th e bank tu r n to bonds.

c.

I n v e s t i n h ig h g r a d e b o n d s . r a t h e r t h a n i n sto c k s•

d.

Choose a c o r p o r a t i o n t h a t i s d o in g an d w i l l c o n t i n u e t o do a p r o f i t a b l e b u s i n e s s .

e.

A f t e r you have p u t a few t h o u s a n d d o l l a r s i n t o b o nd s t u r n t o s t o c k s .

f.

S e le c t sto c k s th a t w i l l y ie ld d iv id e n d s be­ f o r e a l l t h e p r o f i t s a r e p a i d o u t on o t h e r lo w e r g r a d e s t o c k o f t h e same s o u r c e .

g.

Buy o n ly l i s t e d s t o c k s .

h.

I f you a r e an i n e x p e r i e n c e d i n v e s t o r ,

in v e st

i n U n i t e d S t a t e s G overnm ent, s t a t e , o r c i t y b o n d s r a t h e r t h a n i n an y o t h e r s e c u r i t y . i.

D o n 't p u t a l l y o u r money i n one c o n c e r n .

j.

I f t h e b a n k s w i l l n o t le n d money on t h e s e c u r i t y f i n d o u t why.

k*

N ever p i c k a s e c u r i t y m e re ly b e c a u s e one f a c t o r seems f a v o r a b l e .

2^ M-*.

How t o manage y o u r s t o c k ex c h an g e t r a n s a c t i o n s fro m t h e t i c k e r t a p e r e a d i n g . a.

T a b u l a t e th e r e c o r d s of t h e t i c k e r t a p e w h ich p e r t a i n to y o u r i n v e s t m e n t s . (1)

(See F ig u r e 2 . )

R e co rd t h e sym bols p e r t a i n i n g t o y o u r se c u ritie s.

(2 ) b.

T r a n s l a t e t h e s y m b o ls .

Compare t i c k e r t a p e r e a d i n g s , s t o c k m a rk e t q u o t a t i o n s from n e w s p a p e r s , and s t o c k i n d e x e s t o d e t e r m in e t h e s a f e n e s s o f y o u r i n v e s t m e n t .

c.

D on*t buy s t o c k s o r bo nds t h a t f l u c t u a t e sh a rp ly .

d.

I f y o u r s t o c k s o r b o nd s d e c l i n e much i n mar­ k e t v a l u e name a c e r t a i n p r i c e b elo w t h e mar­ k e t p r i c e a t w h ich you w i l l have y o u r b r o k e r se ll*

e.

D on*t p u t y o u r s t o c k c e r t i f i c a t e o r b o n d s away and f o r g e t a b o u t them .

f. C.

Compute t h e p e r c e n t of d i v i d e n d o r i n t e r e s t .

ACTIVITY ASSIG-NMENTSs

Some l e a r n i n g e x p e r i e n c e s t o

h e l p you make p l a n s t o sa v e and i n v e s t . 1.

Make a b u d g e t o f y o u r income to a l lo w f o r b a n k i n g te n p e r cen t of i t .

25

i t k

Oq rn

^ 10o ft

^ICo

"fO

R

r^joo 9 ,0 0 0 s q u a r e

( 3 ) 9 2 ,0 0 0 s q u a r e f e e t .

sq u are f e e t .

(1)

W

9 0 ,0 0 0

( 5 ) 9 3 ,0 0 0 s q u a r e f e e t .

c.

( ) If

th e e a s t d e c l i n a t i o n i s IS d e g r e e s and

t h e compass r e a d i n g i s z e r o d e g r e e s , you s h o u ld f i n d t h e d i r e c t i o n o f t r u e n o r t h t o th e l e f t : g rees.

( 1 ) 15 d e g r e e s .

( 3 ) 22 d e g r e e s .

W

( 2 ) 21 d e ­ 9 d eg rees.

( 5 ) lg d e g re e s . RATING- SCALE:

P l a c e an X i n e a c h s p a c e f o r w hich

you q u a l i f y . a.

( ) F o llo w e d t h e d i r e c t i o n s on how t o s u r v e y a p a rc e l.

b . ( ) Can u s e a t r a n s i t . c . ( ) R eached r e a s o n a b l e a c c u r a c y

i n s u rv e y in g a

p a r c e l of la n d . d . ( ) S u b d iv id e d a p a r c e l o f l a n d . e . ( ) P e r fo r m e d some s u r v e y i n g on la n d w i t h a slo p e . f.

( ) P erform ed s u rv e y in g v ery h i l l y la n d .

g . ( ) Can l o c a t e t r u e n o r t h an d t h e f i r s t s t a t i o n . h. (

) L o c a te d a l l t h e s t a t i o n s .

i.

(

) L o c a te d th e r e f e r e n c i n g p o i n t ,

j.

( ) L o c a te d p o i n t s f o r s u b d i v i s i o n s .

(

) T o ta l.

BIBLIOGRAPHY

B ro u ch ard , H arry:

S u rv e y in g .

I n t e r n a t i o n a l T ex tb o o k

Company, S c r a n t o n , P e n n s y l v a n i a , 194?* Brown, M a rio n :

P o c k e t G uide f o r C a l o r i e C o u n t e r s .

S tu b b s an d Montgomery, I n c . , C o o ley , D o n ald G . :

C h icag o , 194-6.

The New Way t o B a t and G et S lim .

W i l f r e d Funk, I n c . , New Y ork, 1949. War D e p a rtm e n t T e c h n i c a l M anual TM5-235:

S u rv e y in g .

U. S . G overnm ent P r i n t i n g O f f i c e , W a sh in g to n , D. C ., 1940.

university of Southern OfeliftMfftita