Money Management
ATTITUDES ABOUT MONEY
Answer the questions below:
1.
2.
3.
4.
5.
6.
If I could spend $1,000, I would……….
Rich People…………..
Saving Money ………………….
Credit should be used ………………….
Budgeting is …………………………..
The most important thing money does for me is………………….
Financial Planning: A process individuals engage in to achieve longterm financial success while having a quality standard of daily living.
A spending plan is: A paper or electronic document used to record both planned and
actual income through expenditures over a period of time.
A goal: the end result of
something a person intends to
acquire, achieve, do, reach or
accomplish in the near of distant
future.
A financial goal is: are
specific objectives to be
accomplished through
financial planning.
Income:
Money
earned
Fixed Expense: May have a fixed amount
due each month.
Flexible Expenses: Can vary each month
in the amount owed.
WANT:
Something
unnecessary
but desired.
NEED:
Something
thought to
be an
essential for
life.
Value: A
belief about
what is
desirable &
important to
an individual
INCOME
Payment for
providing
resources in
the market.
Wages –
computed by X an
hourly pay rate by
the number of
hours worked.
Gross Earnings:
Money earned
before any
deductions or
taxes withheld.
Form W-2
123-45-6789
XXXXXXXXXX
ABC Mart
10 Washington St.
Our Town, USA 12345
$3,598
$539.70
$3,598
$223.08
$3,598
$52.17
John a. Dough
123 Main St.
Our Town, USA 12345
This form is used when reporting earnings for the entire year to the IRS.
W-4
Federal Form- Determines what amount of
income tax they should deduct from each
employee’s paycheck based on that person’s situation.
Methods Of Deposits
Direct Deposit – employee’s paycheck is deposited into an authorized
account electronically.
* MOST secure way to pay employees.
Paper paycheck – most common method of paying employees.
* Must sign the back on designated line to cash or
deposit.
Payroll Credit – payment electronically loaded on to plastic card.
Methods of Debits
Checks – Paper receipt of payment to the one owed.
Debit Card - A credit card that automatically debits your
account upon placing a purchase.
Making a DEPOSIT
1. Write the date of the deposit in this field.
2. If you are depositing currency (paper bills),
write the total amount here.
3. If you are depositing coins, write the total
amount here.
4. If you are depositing a check, write the bank
transit number here, which is the top portion
of the two-part number printed in the upper
corner of the check.
5. Write the amount of the check here.
6. If you are depositing more checks than can be
listed on the front, continue to list them on the
back, and write the total amount of the checks
on back here.
7. Write the total amount you are depositing here.
8. If you are making a deposit inside a bank with
a teller and you want to receive cash back from
your deposit, write the amount you want in
this field.
9. Write the total amount (less cash back) of your
deposit in this field.
teens – lesson 6 - slide 6-D
Writing a Check
1. Date Enter the date on which you are writing the check.
2. Payee Enter the name of the person or the company you are going to give the check to.
3. Amount of check in numerals Enter the amount of the check, in numbers. Don’t leave any space
between the pre-printed dollar symbol ($) and the numbers indicating the amount of the check; there
should be no room for someone to add in extra numbers.
4. Amount of check in words Enter the amount of the check in words. Start writing at the far left side of
the line. Follow the dollar amount by the word “and,” then write the amount of cents over the number
100. Draw a line from the end of the 100 to the end of the line.
teens – lesson 6 - slide 6-Fa
EXPENSES
Keeping a running
BALANCE !
Check
Date
Number
Description
Deposit
Amount
611
4/22
Chili’s
24.32
ATM
4/30
CASH
40.00
5/1
AEP
500.00
Withdraw
Amount
Why Use Banks ?
Service – banks provide a place to keep money safe and
accessible.
Manageable – provide you with information that keeps
checks/balances on your finances.
Investment – provide you with tools to increase your overall
worth.
Lender – provide you with funds to make large purchases
with the intent to repay.
Savings accounts - keep your money safe and make it grow with interest.
Checking accounts - allow for purchases and pay bills using paper checks
instead of cash.
Loans - help with purchase expensive items and then pay the money back
over time, plus interest.
Credit cards - can be a convenient way to buy things and pay for them over
time, but the interest rate is frequently higher than with loans.
Investment accounts - make their money grow over time, and be prepared
for large expenses, for example college education.
Reading A Bank Statement
teens – lesson 6 - slide 6-H
SHOW ME THE MONEY:
Reaching Your Goals:
What’s
your
goal?
Timeline
in
reaching
goal?
Total
needed
to save ?
What will
be your
monthly
savings?
What
steps can
you take
to reach
monthly
goals?
What
“wants”
can you
cut to
help with
goal?
Managing A Budget
Budget Goals
Actual Budget
Savings
$200
$0
Cell Phone
$100
$150
Car Payment
$100
$100
Gas
$50
$80
Entertainment
$50
$160
Clothes
$60
$100
Total
Net Income: $590
$560
$590
Fixed Expenses
Variable Expenses
Borrowing/Credit Cards
Credit History
Borrow only what you can repay.
Establish a steady work record.
Read and understand the credit contract.
Pay all bills promptly.
Pay debts promptly.
Open a checking account and don’t bounce
checks.
Notify creditor if you cannot meet
payments.
Report lost or stolen credit cards
promptly.
Never give your card number over the
phone unless you initiated the call or are
certain of the caller’s identity.
Open a savings account and make regular
deposits.
Apply for a local store credit card and make
regular monthly payments.
Get a co-signer on a loan and pay back the
loan as agreed.
CREDIT CARDS
TYPES OF CREDIT CARDS
1. Bank Card
a. Visa, MasterCard
2. Store Card
a. Macy’s, Chevron
3. Travel and entertainment card
a. American Express
1.
2.
3.
4.
5.
6.
7.
PROTECTING YOURSELF
Keep record credit card numbers
Keep record of phone number to call if lost.
Keep receipts of purchase until bill arrives.
Limit giving card no. on telephone
Report card lost or stolen immediately
Shop on secure websites
Destroy old credit cards
1.
2.
3.
4.
5.
6.
SHOPPING FOR CREDIT CARD
Schedule of payment (monthly)
APR (annual percentage rate)
Annual Fee
Late Fee (timeline)
Credit Limit
How widely is card accepted
CREDIT CARD STATEMENT
SAVINGS
• A little can add up!
•
•
•
•
•
•
Save this each week … at % interest … in 10 years you’ll have
$7.00
5%
$4,720
14.00
5%
$9,440
21.00
5%
$14,160
28.00
5%
$18,880
35.00
5%
$23,600
• You can buy … two fast food meals or one movie ticket
(and a candy bar) or save $7.00 this week.
• You can buy … two small cheese pizzas or one large pepperoni pizza,
delivered or one new CD or save $14.00 this week.
• What can you give up to save for your financial goals?
TYPES OF SAVINGS
Money Market Savings
Bonds
Retirement Investment
Real Estate
Certificates of Deposit (CD)
Mutual Funds
Stocks
College Fund
Comparing Savings and Investment Plans
instrument
maturity
risk
yield
minimum
balance
taxable?
Savings
Account
Immediate
None if insured
Low
$5
Yes
90 days or more
None if insured
Moderate
Varies
Yes
Corporate
5–30 years
Some
Moderate
$1,000
Yes
Municipal
1–20 years
Some
Moderate
$5,000
No federal,
some states
Stocks
Immediate
Low to high
Low to high
Varies
Yes
1 year or less
None
Moderate
$10,000
Federal only
Notes
1–10 years
None
$1,000
Federal only
Bonds
10–30 years
None
$1,000
Federal only
Varies
Low to high
Moderate
Varies
Usually
When buyer is
60 years old
Low
Moderate
Varies
At maturity
Certificate of
Deposit
Bonds
U.S. Treasury
Bills
Mutual Funds
Retirement
Funds
Be Smart with Your
MONEY !