Personal Finance

Personal FinanceUnit 13 Georgia Produces; Georgias Trade; Starting a Business; Sources of State Revenue; Personal Money ManagementTrade in GeorgiaTrade in Colonial times was with Native Americans and shipping goods back to Europe.

Antebellum trade involved wagons, river boats, steam ships and trains.

Free TradeFree Trade is trade between countries that is unrestricted by tariffs.

Georgia Products: AgriculturePoultryCottonTobacco LeafPeanutsPeanut ProductsGOLD KIST nations 2nd largest poultry company is in GA.

Georgia Produces: ManufacturingSoft drinks, carpet, transportation equipment, & forest products

Coca-Cola most recognized GA productShaw Industries largest manufacture of carpet in the worldLockheed-Martin in Marietta makes C-130 aircraft for global customersGeorgia-Pacific: Worldwide supplier of forest products: pulp, paper, & building products

Georgia Produces: TransportationDelta Airlines: Atlanta based air carrierUnited Parcel Service (UPS): Largest single transportation network in the world. Both help move Georgians and cargo across the globe every day. Shipyard at Savannah & Brunswick also play a role in international shipping.

Starting A BusinessEntrepreneur: A person who takes a risk to produce goods and services in search of a profit. A profit is a company's earnings after all expense are paid. Profit provides incentive for entrepreneurs.

Entrepreneurs Entrepreneurs invest personal resources and risks losing those resources if the business fails. They share the risk when borrowing from banks or a wealthy investor. Entrepreneurs are good for the economy.

Georgia Entrepreneurs:

Delta AirlinesCoca-ColaGeorgia-PacificHome Depot

Sources of State RevenueSales TaxFederal GrantsConsumption TaxA sales tax which is placed on things that people buy and consume. Cars, groceries, clothes, etc. U.S. Government gives states federal grants to help fund education or build interstate highways.

Sources of State RevenuePersonal Income TaxProperty TaxesStates and the U.S. Government tax the earnings of individual citizens & money they earn from investments. Private homes, land, and business property and taxed according to their value. Major source of revenue for the local governments.

WHO GETS THE MONEY?Revenue is used to pay for state & local programs like education, roads, public transportation, police & fire protection.

Citizens pay taxes citizens use services.

State BudgetGA Constitution says that the State must operate under an annual budget. That budget details how much money is spent where. The General Assembly must pass an appropriation which permits the spending from the budget. Many levels of the State Government participate in planning the budget.

Planning A State BudgetProcess begins in SpringHead of each agency decides how much money they need during the year. In the Fall, the Office of Planning & Budget looks at the requests and decides what can be cut. In January the Governors proposed budget is presented to the General Assembly. State law requires that the budget be balanced; meaning the state cannot go into debt EVER. Personal Money ManagementMoney is the medium of exchange to buy goods and services. Your income provides you with money to spend on whatever you choose.

Personal Money ManagementPeople use CREDIT to buy something now and pay for it later. When you use CREDIT, you have to pay the amount you borrowed plus and additional amount of interest. Banks make money from interest payments interest is a fee paid for the use of someone elses money.

Making Your Money Grow! Putting money in a bank or credit union can make you EARN interest. Saving money allows you to increase your money by INVESTING.

Making Your Money Grow! Ways to Invest Your Money:

Stocks and BondsReal EstateNatural ResourcesCollectiblesBusiness (your own or someone elses)

Safeguarding Your MoneyThe Federal Deposit Insurance Corporation (FDIC) was created in the New Deal by FDR in the Great Depression.

The FDIC provides insurance for Americans who have money in banks.

Safeguarding Your MoneyThe FDIC insures banks in case of bank failure. If a bank fails, $100,000 of your money is insured by the Federal Government. Since the FDIC was created, no American has lost money to a bank due to bank failure.