Lifetime Price Tag on Smoking

Abstract

The goal of this project was to develop an expected lifetime cost for the purchasing of cigarettes. By creating a model and putting a more realistic number on the cost of cigarettes, I hope to emphasize the major economic consequences of this decision to young people. To make this model, the state-by-state cigarette ingredient and tax costs of the past 13 years were researched and future costs were projected using different trends. To find the truest estimate for the total cost, this model contemplates both the time value of money and mortality to find the expected dollar amount that a young smoker will spend throughout their life on cigarettes. After completing this model, it was clear that becoming a life-long smoker would have an extreme financial impact. I recommend all young people think seriously about the decision to begin smoking.