Name: ______________________________________
FINANCE PACKET
Hour:_____
Planet Paycheck
Directions: Use the note taking guide to record information during the PowerPoint presentation.
Taxes:________________________________________________________________________________
___________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________
Form W-4:
_____________________________________________________________________________________
______________________________________________________
_____________________________________________________________________________________
_____________________________________________________________
I-9:
_____________________________________________________________________________________
_____________________________________________________________
Form W-2:
_____________________________________________________________________________________
_______________________________________________________
_____________________________________________________________________________________
_____________________________________________________________
Methods for paying employees
Paycheck
Direct Deposit
Payroll Card
Description:
Description:
Description:
Pro:
Pro:
Pro:
Con: Least secure, employee
responsible for getting it to the
bank.
Employee knows exactly
when they will be paid.
Con: May charge fees for use
of the card
Reading a paycheck stub
Personal Information:
_____________________________________________________________________________________
____________________________________
Pay Period: The length of time for which an employee’s wages are calculated (usually weekly, bi-weekly,
monthly).
Gross Income:
_____________________________________________________________________________________
______________________________________________
Payroll withholdings:
_____________________________________________________________________________________
_______________________________________
Withholding Tax:
_____________________________________________________________________________________
___________________________________________
FICA: Federal Insurance Contribution Act
Social Security: helps provide retirement income for the elderly and pays disability benefits.
Medicare:
_____________________________________________________________________________________
________________________________________________________
Net Income:
_____________________________________________________________________________________
__________________________________________________
Year-to-date: Totals all of the deductions which have been withheld from an individual’s paycheck from
January 1 to the last day of the pay period indicated on the paycheck stub.
Depository Institution Discovery
Depository Institutions
A depository institution is a business that offers and sells financial services to people, such as
____________________________________ and _________________________________ tools.
They assist people with daily financial tasks and play an important role in day-to-day living. There are
many different types of depository institutions such as credit unions, savings and loan institutions and
____________________________________ banks.
A commercial bank is the most popular type of
________________________________________________ which lends, issues, borrows and protects
money.
Commercial banks also present a better way for people to manage money. They provide records of money
put into an account, or ___________________________________ , and money taken out of account, or
______________________________________.
Checking Account
What does the Check Clearing for the 21st
Century act enforce?
It makes it difficult to bounce a check, because
money is automatically withdrawn from an
account as soon as a check is written.
Therefore, an individual must have money in
his/her account to make a purchase.
Describe the characteristics and benefits of an
interest earning checking account.
An interest-earning checking account pays a
small amount of interest and usually requires a
minimum balance which is the smallest amount
of __________________ that must be kept in
the account in order to keep paying interest.
Describe the steps to opening a checking account.
1.
2.
3.
What must be included on a signature authorization card?
• Printed Name
•
•
•
• Social Security Number
•
Savings Tools
Savings tools keep money safe until the owner needs to use it for
__________________________________ or to purchase __________________________ items.
Money deposited in a savings tool has the opportunity to earn __________________________ which is
calculated by taking a percentage of the total amount of money to see what is gained.
Name of Savings Tools
Characteristics and Benefits
Pays interest on the amount of money deposited in the account.
Money can be deposited and withdrawn an unlimited number of times
during a month.
There is no check writing privileges.
A debit card may be used with certain savings accounts to make purchases.
Pays a higher interest rate than a savings account.
Requires more money to open than a savings account.
Money can be withdrawn through a limited number of transactions each
month.
It pays interest on a lump sum of money.
Money is required to stay in a CD for a specific period of time.
If money is withdrawn early, a penalty fee will be charged.
The money and interest earned from a CD can be withdrawn at the end of
the time period.
The rate of interest increases as the time period a person agrees to keep
their money in the CD increases.
Investment Tools
Earn higher _________________________________________ than savings tools but funds are not as
easily accessible. Also, these are not insured against loss. Examples are
_________________________________ and ________________________.
Insurance
Risk-
How much money should you have in emergency savings?
What is insurance?
Insurance policyThe risks that are covered and the amount of money paid for the loss is known as
_________________________________________.
______________________________________ is money paid to the insurance organization to purchase
the policy.
What are the three sources of insurance?
1.
2.
3.
Match the type of insurance to its description
Health
Provides payment for extended nursing care due to accidents, illness, or old age.
Disability
Long-Term Care
Provides payment to beneficiaries if the insured person dies.
Provides money to pay for health care for illness, injury, or in some cases, preventative
care.
Property
Provides payment to replace earnings during times when workers cannot work due to
illness or injury.
Liability
Provides payment to others if a member of the insured household accidently causes harm to other
people or property.
Life
an accident.
Provides payment to the insured person if his or her property is damaged or destroyed by
Checking Account and Debit Card Reading Guide
1. Checking Accounts
Define checking accounts:
_____________________________________________________________________________________
___________________________________
_____________________________________________________________________________________
________________________________________________________________________
Why do people use check accounts? Reduces the need to carry large amounts of cash. Convenient because
you don’t have to carry cash or get money orders. Written record of expense, you track when your money
goes. Safety.
List the ways you can easily access funds: (5 different ways)
CHECKS- Legal documents that function like _____________________. Check can “bounce” if there are
insufficient funds, or
_____________________________________________________________________________________
______ to cover the total check amount. A checking account register and checkbook are used to record
___________________________________.
ATM- ___________________________________________________________ that is electronically
connected to an individual’s bank account. Can be used to _______________________________ cash or
make ___________________________. Additional bank fees may be charged.
DEBIT CARD- Plastic card that is electronically connected to an individual’s bank account. When
purchases are made,
_____________________________________________________________________________________
___________________________________________________________. Requires a PIN or
_________________________________________________________ to confirm the user of the debit
card is authorized to access the account.
Pros
•
• Small
•
• Carry less cash
•
Cons
•Can lose track of balance if transactions
are not written down.
•
• Others can gain access in PIN is known
2. Endorsing a check
Define endorsed:
_____________________________________________________________________________________
___________________________________
Blank Endorsement:
Restrictive Endorsement:
Special Endorsement:
Endorse the three checks below with your signature. The restrictive endorsement is for account number
987654321 and the special endorsement will be paid to Rachel Hamilton.
3. Using a debit card
Debit card:
_____________________________________________________________________________________
________________________________________________________
Personal Identification Number:
_____________________________________________________________________________________
_________________________
1. _________________________________- This sixteen digit number is the account number that links all
purchases made with the card to a designated bank account.
2. Expiration date- The debit card is valid and may be used until that date.
3. ____________________________________________- The cardholder’s full name is written out.
4. Magnetic strip5. _____________________________________________- The cardholder must sign in the signature box
of the back of the debit card to authorize payments. The cardholder should also write, “See ID” in the
signature box to ensure the person using the card is authorized to do so.
6. _____________________________________________- Three digit code by the signature area that
helps ensure the card is in the cardholder’s possession when making purchases.
4. Bank Statement
What do bank statements show?
If you check your statement you are reconciling your account. Reconciling the account each month allows
individuals
_____________________________________________________________________________________
________________________________________________________________________________.
Why?
Taking Charge of Credit
What is credit?
What is interest?
The price of money.
When referring to credit it is
the charge for borrowing
money.
What is a credit card?
A credit card is a
form of credit!
What is a credit limit?
Maximum amount of money that can be ________________________________ on a card.
What is a minimum payment?
What are your two options to pay your credit card bill?
1.
2. Make smaller payments- the same each money (ex:
$150)
or different (ex: $50 one month, $170 another month,
$92….)
What is Annual percentage rate (APR)?
How can interest charges be avoided on a credit card?
What two steps are involved with getting a credit card?
1. Examine credit card offers which display main ___________________ of a potential credit
card.
2.
What is the restriction to getting a credit card?
UNLESS?
What are the Advantages and Disadvantages to Using a Credit Card?
Advantages
Disadvantages
*
* Paying interest if balance is kept on card.
* Useful for emergencies
*
* Often required to hold a
* Tempting to
*
_______________________________
*
__________________________________
______
*
*
Responsible for lost/stolen cards.
Possibility of receiving bonuses such as
frequent flyer miles and cash rebates.
of
Responsible CreditRisk
Card
Use
__________________________________
__
Don’t
Do
* Pay amount charged in full every month
* Make late payments
*
*
*
* Go over the credit limit
* Check monthly credit card
*
______________________________ for
errors
What are late payment fees?
What is an over the limit fee?
Charged if the amount of
transactions goes over credit
limit.
What are two credit card safety tips?
1.
2.
What should you write on the back of your credit card?
What is Penalty APR?
Spending Plans
Term
Definition
Value
Need
Want
A spending plan
is:___________________________________________________________________________________
___________________________________________________.
Spending plans help people1.
2.
3.
Income
Expense
What you need to know for the test
1. What could you use in place of cash?
2. Why do people save money?
3. What is interest, what kinds of accounts earn it, what kinds charge it?
4. Are investments protected against love?
5. Why do you need to check your bank statements?
6. What are the different types of insurance?
7. What are the different services offered by depository institutions (there are 4)?
8. What should you write on the back of your credit card?
9. How do spending plans help people?
10. How do you avoid paying interest on a credit card?
11. What is the difference between debit cards and credit card?
Find these words and know the definitions!!
Income
Expense
Value
Want
Need
Withdraw
Deposit
APR
Credit
Credit limit
Interest
Late payment fee
Minimum payment
Over-the-limit fee
Penalty APR