Applications of Exponential Functions

Introduction:

This training module explores asset-based pedagogy of exponential functions in financial contexts. The focus is on real-world scenarios involving saving for college expenses, managing living costs, and planning family gatherings. These exercises are tailored for students who are employed and living in Texas metropolitan areas such as Dallas, San Antonio, Austin, and McAllen, incorporating average wages and cost-of-living considerations.

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Exercise 1: Budgeting for Monthly Living Expenses

Scenario: You are a recent graduate working full-time in one of the following metropolitan areas: Dallas-Fort Worth-Arlington, San Antonio-New Braunfels, Austin-Round Rock, or McAllen-Edinburg-Mission.

Introduction:

- 1. Determine Your Monthly Net Income:
- Use the following average annual salaries for each region:
- Dallas-Fort Worth-Arlington: $79,502
- San Antonio-New Braunfels: $66,889
- Austin-Round Rock: $61,623
- McAllen-Edinburg-Mission: $49,340
- Calculate your monthly gross income by dividing by 12.
- Estimate your monthly net income after a 20% deduction for taxes and benefits.

Allocate Your Monthly Expenses:

- Assign percentages of net income to various categories:
- Housing: 30%
- Utilities: 5%
- Groceries: 10%
- Transportation: 10%
- Healthcare: 7%
- Savings: 10%
- Miscellaneous: 28%

Adjust for Regional Cost Variations:

-Compare the cost of living across the cities and adjust your budget accordingly.

Exercise 2: Saving For College Expenses

Scenario: You are planning to enroll in a local university while working part-time.

Instructions:

1. Estimate Annual College Costs:
- Research in-state tuition and additional expenses (books, transportation).
2. Calculate Part-Time Employment Income:
- Assume you work 20 hours per week at $14.24 per hour.
- Determine monthly and annual earnings.
3. Develop a Savings Plan:
- Compare your annual earnings with total college costs.
- Identify financial gaps and potential solutions (scholarships, grants, loans).
- Set a monthly savings target.

Exercise 3: Planning a Family Gathering on a Budget

Scenario: You want to host a family gathering in your city.

Instructions

1. Set a Budget:
- Define a total spending limit based on disposable income.
2. Estimate Costs:
- Venue: Research affordable or free community spaces.
- Food & Beverages: Compare catering vs. home-cooked meals.
- Entertainment & Decorations: Budget accordingly.
3. Explore Cost-Saving Measures:
- Organize a potluck-style meal.
- Use digital invitations to save money.

Summary & Writing Components

In a short essay (250-300 words), reflect on the financial challenges faced by students
balancing work, education, and personal expenses. Discuss how exponential functions help
model savings growth, budget planning, and financial decision-making.

This training module demonstrates how exponential functions apply to real-life financial
planning, helping students make informed decisions about their future.