what does this mean to you?. fcs 7 th grade money management
TRANSCRIPT
What does this mean to you?
FCS 7TH GRADE
Money Management
Income
Income: The amount of money you have coming in (ADDITION)
Money you receive from: Babysitting Mowing Lawns Allowance
Expenses
Expenses: The goods and services you spend money on (SUBTRACTION)
2 Categories of Expenses: Fixed: Expenses that must be paid and don’t vary in
amount (NEED) Transportation Lunch Money
Flexible: Expense that vary from time to time (WANT) Concert Tickets New Shoes
Budgets
Budget: A plan for spending and saving the money you have available.
Steps to creating a budget:1. Decide what are you most important
expenses and write them in order.2. Record your expected income-keep weekly
records.3. Write down what you plan to spend on
your expenses.4. Review your budget periodically.
Accounts
Checking Accounts: Consumers place money into an account and use checks or debit cards as cash to withdraw or take out the money in the account.
Accounts
Savings Accounts: Increase the amount you deposit by paying you interest. Used to save for a major goal
College Car Vacations
Checks
• Checks: Used the same as cash, fill out completely and in ink.
• You can only write checks up to the balance you have in your account.
• Check Register: Small booklet used to help keep a record of your account.
You should check your monthly banking statement and make sure it matches the balance you have written down for your account.
WHY?
Debit Cards
Debit Card: Used the exact way as filling out a check and using it. There is no interest on debit cards like on a credit
card. The money comes straight from your account.
Depositing Money
Deposit: Putting money into an account.Fill out a deposit slip for the amount you
want to put into your account.
ATM
ATM: Automatic Teller Machine You can use your debit card at the ATM to do several
things: Withdraw money Deposit money Check your account balance
Credit
Credit: An arrangement that lets you buy things now and pay for them later.
2 Major Types: Loans: Borrow money from a bank and pay back on a
payment plan Sales credit/Charge accounts: Receive purchase now
and pay a store or credit card company later for what you owe.
Interest
Interest: The money a financial institution pays at regular intervals for the use of your money.
Example: I have a credit card with a limit of $1,000 with a 5%
interest. How much will I have to pay monthly?
$1,000x5%=$50 OR $1,000x0.05=$50