personal finance basics
DESCRIPTION
Help! I’m out of money!. Personal Finance Basics. Created by Camille Krum. Activity: How Much Do They Make?. Earning. Spending. Credit. Income. Credit Cards. Careers. Expenses. Variable. Fixed. Differential. Earning. Careers. Learn and Earn. How much is your time worth?. - PowerPoint PPT PresentationTRANSCRIPT
Created by Camille Krum
Help! I’m out of money!
Personal Finance BasicsPersonal Finance Basics
Activity: How Much Do They Make?
Spending CreditEarning
Careers
Income Credit Cards
Expenses
Variable
Fixed Differential
Earning
Careers
Learn and Earn
High School Degree
Associate Degree
Bachelor Degree
Masters Degree
Doctorate Degree
$18,571 $26,536 $40,387 $48,872 $60,729
How Education Pays: For the Rest of Your Life
How much is your time worth?
Salary Year Salary Week
Benefits=40%
Total Salary
Total Week Value Per Hour
Value Per Minute
$15,000 $288.46 $115.38 $403.84 $10.10 $0.17
$20,000 $384.62 $153.85 $538.47 $13.46 $0.22
$25,500 $480.77 $192.31 $673.08 $16.83 $0.28
$30,000 $576.92 $230.77 $807.69 $20.19 $0.34
$40,000 $769.23 $307.69 $1,076.92 $26.92 $0.45
$50,000 $961.54 $384.62 $1,346.16 $33.65 $0.56
$60,000 $1,153.85 $461.54 $1615.39 $40.38 $0.67
$70,000 $1,346.15 $538.46 $1,884.61 $47.12 $0.79
$80,000 $1,538.46 $1,884.61 $2,153.84 $53.85 $0.90
$90,000 $1,730.77 $692.31 $2,423.08 $60.58 $1.01
Activity
Do you get tired of going to class every day? Complete the assignment and see what the value of a day’s education is over a 40-year work life. How much is attending each class really worth?
How Much is Class Attendance Worth?
Spending
Income
Expenses
Variable
Fixed Differential
Lifestyle costs
• Where you live• Clothes• Food• Transportation• Entertainment• Vacations• Other costs-car repairs
insurance
Reality Check
Take the reality check quiz online to see what your life style choice requires you to earn per hour.
URL:http://www.jumpstart.org/madmoney/pgv_money_rc_main.html
Activity: Cookie Monster• Select student to be employee
• Select student to be State Tax collector
• Select student to be Social Security Tax collector
• Select student to be Federal Tax collector
• Select student to be Health Insurance collector
• Select student to be Life Insurance collector
• Select student to be Donation collector
REALITY BITES
Do you know where your money goes?
Identify your spending traps—
For the next two days keep a spending log. Record everything you spend.
Financial GoalsShort term goal—pay for
immediate needs such as school, entertainment, clothes, etc.
Medium term goal—college education, cars, vacation.
Long term goal—retirement plans, change in career, travel
Activity: Road Map to Spending
• Divide into groups of three. In two minutes list as many items as they can in the following categories:
• Fixed Expenses• Variable Expenses• Differential Expenses• Each student completes A Road
Map For Spending
BudgetGo to computers in groups of three—if
not enough computers for all students.
Go to web site
and select career and salary from list.
Go to “Where does your salary go” and complete the activity.
Credit
Credit Cards
Three C’s of Credit
• Character—borrower’s willingness to pay you based on past history paying back loans
• Capability—ability to pay back money borrowed
• Collateral—property used to cover amount owed if fail to pay back money– Group students to do scenarios
A Credit Check
Perhaps you have not developed a personal credit history, but you do have a personal education performance history that reflects similar behavior patterns. On a piece of paper, answer the following questions:
1. Number of times you have missed class this semester.
2. Number of times you have been tardy this semester.
3. How many times have you turned in late assignments this semester.
4. How many times have you turned in incomplete assignments this semester?
5. How many times have you not turned in an assignment at all this semester?
6. How many times have you been asked by the teacher to change or improve your behavior in class this semester?
7. How many times have you forgotten to bring the required materials (pencil, disk, notebook, etc.) to class this semester?
TOTAL (Add the numbers listed for 1-7 above)
How did you do?
4 or less…………… Credit Granted!!
5o-7 ……………… You are going to need a cosigner
8 or more………… CREDIT DENIED!
FALSE
TRUE
FALSE
TRUE
FALSE
TRUE
FALSE
TRUE
FALSE
TRUE
Credits and Referencs
www.themint.org
www.jumpstartcoalition.org