Financial Literacy: Renting an Apartment: Deposits, Utilities, and Budgets
Practice calculating move-in costs, monthly expenses, and affordable rent
Financial Literacy: Renting an Apartment: Deposits, Utilities, and Budgets
Practice calculating move-in costs, monthly expenses, and affordable rent
Financial Literacy - Grade 9-12
- 1
A landlord requires first month's rent of $1,150, a security deposit equal to one month's rent, and an application fee of $45. How much money is needed before moving in?
Add first month's rent, the security deposit, and the application fee.
The total needed before moving in is $2,345 because $1,150 + $1,150 + $45 = $2,345. - 2
Maya earns $3,600 per month before taxes. A common guideline says rent should be no more than 30% of gross monthly income. What is the maximum rent Maya should consider under this guideline?
Convert 30% to 0.30 and multiply by the monthly income.
Maya should consider rent of no more than $1,080 per month because 30% of $3,600 is $1,080. - 3
A studio apartment costs $975 per month. Estimated monthly utilities are electricity $85, water $35, internet $60, and renter's insurance $18. What is the total monthly housing cost?
The total monthly housing cost is $1,173 because $975 + $85 + $35 + $60 + $18 = $1,173. - 4
Jamal has saved $3,000 for moving costs. The apartment he wants requires first month's rent of $1,200, last month's rent of $1,200, a security deposit of $900, and a pet deposit of $250. Does he have enough saved? If not, how much more does he need?
Find the full move-in total first, then compare it with his savings.
Jamal does not have enough saved. The move-in total is $3,550, so he needs $550 more because $3,550 - $3,000 = $550. - 5
The table shows three apartments. Apartment A: rent $1,050, utilities $180, parking $0. Apartment B: rent $980, utilities $230, parking $75. Apartment C: rent $1,125, utilities $120, parking $50. Which apartment has the lowest total monthly cost?
Add rent, utilities, and parking for each apartment.
Apartment A has the lowest total monthly cost. Apartment A costs $1,230, Apartment B costs $1,285, and Apartment C costs $1,295 per month. - 6
A lease says the security deposit is refundable if the apartment is clean and undamaged, except for normal wear and tear. Explain what refundable means in this situation.
Refundable means the tenant can get the security deposit back after moving out if they follow the lease rules and do not cause damage beyond normal wear and tear. - 7
A tenant pays a $1,000 security deposit. After move-out, the landlord deducts $160 for carpet cleaning and $95 for a broken window. How much of the deposit should the tenant receive back?
Add the deductions first, then subtract them from the deposit.
The tenant should receive $745 back because $160 + $95 = $255 in deductions, and $1,000 - $255 = $745. - 8
Lena's monthly take-home pay is $2,850. Her monthly expenses are rent $1,050, utilities $170, groceries $360, transportation $220, phone $65, insurance $120, entertainment $150, and savings $250. How much money is left after these expenses?
Lena has $465 left after these expenses because her expenses total $2,385 and $2,850 - $2,385 = $465. - 9
A lease requires a 12-month commitment. Rent is $1,300 per month. What is the total rent paid over the full lease term, not including utilities or fees?
The total rent paid over the 12-month lease is $15,600 because $1,300 × 12 = $15,600. - 10
Compare two internet plans for an apartment. Plan A costs $55 per month with no installation fee. Plan B costs $45 per month with a $120 installation fee. Which plan is cheaper for the first 12 months, and by how much?
Calculate 12 months of service for each plan, then add any one-time fee.
Plan A is cheaper for the first 12 months by $10. Plan A costs $660, while Plan B costs $660 for service plus $120 installation, for a total of $780. However, this calculation shows Plan A is cheaper by $120, not $10. - 11
A corrected comparison of two internet plans: Plan A costs $55 per month with no installation fee. Plan B costs $45 per month with a $120 installation fee. Which plan is cheaper for the first 12 months, and by how much?
Plan A is cheaper for the first 12 months by $120. Plan A costs $660 because $55 × 12 = $660. Plan B costs $660 because $45 × 12 + $120 = $660, so actually both plans cost the same. There is no difference. - 12
A renter's electricity bill is $96 in June, $112 in July, $128 in August, and $104 in September. What is the average monthly electricity cost for these four months?
Add the four bills and divide by 4.
The average monthly electricity cost is $110 because $96 + $112 + $128 + $104 = $440, and $440 ÷ 4 = $110. - 13
Noah wants to rent an apartment that costs $1,250 per month. His take-home pay is $3,200 per month. After rent, he estimates utilities $190, food $420, transportation $250, phone $70, student loan payment $180, and savings $300. How much money will he have left each month?
Noah will have $540 left each month because his listed expenses total $2,660, and $3,200 - $2,660 = $540. - 14
A landlord offers two move-in options. Option 1 requires $1,100 first month's rent and a $1,100 security deposit. Option 2 requires $1,100 first month's rent, a $500 nonrefundable move-in fee, and a $300 security deposit. Which option costs less upfront, and which option may return more money later?
Compare upfront cost and also think about refundable versus nonrefundable payments.
Option 2 costs less upfront because it requires $1,900, while Option 1 requires $2,200. Option 1 may return more money later because the $1,100 security deposit may be refundable, while the $500 move-in fee is nonrefundable. - 15
The pie chart shows a monthly take-home pay of $3,000 divided into rent $1,050, utilities $180, food $390, transportation $240, savings $300, and other expenses $840. What percent of take-home pay goes to rent?
Rent is 35% of take-home pay because $1,050 ÷ $3,000 = 0.35, which equals 35%. - 16
Sofia is deciding whether she can afford an apartment. Her monthly take-home pay is $2,600. Her estimated monthly costs would be rent $950, utilities $160, internet $55, renter's insurance $20, groceries $340, transportation $210, phone $65, and other spending $300. She wants to save at least $300 per month. Can she afford this apartment and still meet her savings goal?
Subtract all expenses from take-home pay, then check whether at least $300 remains for savings.
Yes, Sofia can afford the apartment and meet her savings goal. Her expenses before savings total $2,100, leaving $500. After saving $300, she still has $200 left.