If I Had a Million Dollars…
Students spend a million dollars to see how far it goes – or doesn’t go.
Level: Jr/Sr High School
Originated by: Treetop Publishing
Would you be rich? Yes, even in today’s terms, a million dollars is a lot of money. However… given the responsibility of spending a million dollars with no other income, how far would it really go?
Here’s the scenario: You are 21, and you bought a lottery ticket that won $1,000,000. Now you can move out on your own. You need to find a place to live, a vehicle, and must make the money last at least 5 years.
If you buy a lottery ticket and win $1,000,000:
- How much federal income tax would you owe? (28-39.6%)
- Would you buy a home or rent?
- What luxuries would you really like to have, and what expenses would be related to them? For instance, if you want a large boat – you would need to purchase the boat, pay docking fees (unless your home is on the water and you have your own dock), maintenance, fuel, etc.
- How much money would you earn in interest over 5 years if you saved a large portion of the windfall?
Don’t forget, now that you are on your own, all of your living expenses are your own responsibility, such as:
- Health costs/insurance
- Insurance for your vehicle
Using a Bare Book, write a news article about your win using the first page or two of the book. Quote yourself saying how you plan to spend your newfound fortune. Use the rest of the book to show the research you’ve done on the items discussed above. Include images of the items you purchased and the expenses related to them. A balance sheet at the end of the book should show a summary of what you spent and how much money you have left – be sure to include any interest or dividends that you earned from savings or CDs.