Fun with Lots of Die Rolling Todd Hospodarsky Monticello High School

Materials needed Simulation materials Calculators (phones?) Possibly computers Dice - 4, 6, 8, 10, 12, 20 sided All are optional

Budget

A financial plan

3 types of Budgets

Balanced – Spend what you make

3 types of Budgets Balanced – Spend what you make Deficit – Spend more than you make

3 types of Budgets Balanced – Spend what you make Deficit – Spend more than you make Surplus – Spend less than you make

If you Budget correctly = You will get farther (money wise) than if you don’t

Steps How to Budget

1. Set a financial goal (with a time frame)

Steps How to Budget 1. Set a financial goal (with a time frame) 2. List your income

Steps How to Budget 1. Set a financial goal (with a time frame) 2. List your income 3. Plan your expenditures

Steps How to Budget 1. Set a financial goal (with a time frame) 2. List your income 3. Plan your expenditures ****Pay yourself first

If you run a deficit

If you run a deficit then you must look at your opportunity costs

If you still can’t balance then you need to borrow = credit

NEW TOPIC

Savings

Anything you don’t spend

Things that affect Savings

1. Income

Things that affect Savings 1. Income 2. Expectations

Things that affect Savings 1. Income 2. Expectations 3. Tax Laws

What to Look for when Saving

1. Safety

What to Look for when Saving 1. Safety 2. Rate of Return (Interest Rate) -APR

What to Look for when Saving 1. Safety 2. Rate of Return (Interest Rate) -APR Compound Interest –

What to Look for when Saving 1. Safety 2. Rate of Return (Interest Rate) -APR Compound Interest – APY Interest on Interest already earned Rule of 72 =

What to Look for when Saving 1. Safety 2. Rate of Return (Interest Rate) -APR Compound Interest – APY Interest on Interest already earned Rule of 72 = 72 divided by the interest rate =# yrs it takes your $ to double

What to Look for when Saving 1. Safety 2. Rate of Return (Interest Rate) -APR 3. Liquidity – How easy it is to turn your savings into cash

High Liquidity = Low Interest Rate Low Liquidity = High Interest Rate

NEW TOPIC

Credit

Buy Now Pay for it Later

Where can you Borrow??? – Types of Loans

1.Mortgage – Property - Bank (4.5%)

Where can you Borrow??? – Types of Loans 1.Mortgage – Property - Bank (4.5%) 2.Consumer Loan – Goods/Services – Bank/Store/Company (0-8%)

Where can you Borrow??? – Types of Loans 1.Mortgage – Property - Bank (4.5%) 2.Consumer Loan – Goods/Services – Bank/Store/Company (0-8%) 3.Credit Cards – Goods/Services – Bank/Store (15-25%)

Credit Cards - Advantages 1. Flexibility

Credit Cards - Advantages 1. Flexibility 2. Safety

Credit Cards - Advantages 1. Flexibility 2. Safety 3. Emergency Funds

Credit Cards - Advantages 1. Flexibility 2. Safety 3. Emergency Funds 4. Character Reference Credit History

Credit Cards - DisAdvantages 1. Overspending

Credit Cards - DisAdvantages 1. Overspending 2. Higher Costs

Credit Cards - DisAdvantages 1. Overspending 2. Higher Costs a. Interest

Credit Cards - DisAdvantages 1. Overspending 2. Higher Costs a. Interest b. Store Charges

Credit Cards - DisAdvantages 1. Overspending 2. Higher Costs a. Interest b. Store Charges 3. Impulse Buying

Things To Look For

1. Grace Period

Things To Look For 1. Grace Period 2. Annual Fee– (want None)

Things To Look For 1. Grace Period 2. Annual Fee– (want None) 3. Interest Rate

Things To Look For 1. Grace Period 2. Annual Fee– (want None) 3. Interest Rate 4. Credit Limit

Things To Look For 1. Grace Period 2. Annual Fee– (want None) 3. Interest Rate 4. Credit Limit 5. Extras – Cash Back – Flyer Miles –get Something

Things to Watch out For 1. Cash Withdrawal 2. Checks 3. If you don’t pay all of the bill you’ll have hidden costs

NEW TOPIC

Today– Late Work and EC Due Wed– Test and Sect Reviews Due – Bring a Calculator

Insurance

Shared Risk

Premium –

Price You Pay to be Covered By Insurance

Premium – Price You Pay to be Covered By Insurance Deductable –

Premium – Price You Pay to be Covered By Insurance Deductable – How Much You Have to Pay Before Insurance Kicks In

Premium – Price You Pay to be Covered By Insurance Deductable – How Much You Have to Pay Before Insurance Kicks In Co-Pay –

Premium – Price You Pay to be Covered By Insurance Deductable – How Much You Have to Pay Before Insurance Kicks In Co-Pay – How Much You Have to pay Along With Insurance

Life Insurance –

Pays Your Family Money When You Die

Life Insurance – Pays Your Family Money When You Die 1. Term – Cheapest – No Cash Value

Life Insurance – Pays Your Family Money When You Die 1. Term – Cheapest – No Cash Value 2. Whole – Pay Same Premium get Same Coverage – Entire Life Does Accumulate a Cash Value

Life Insurance – Pays Your Family Money When You Die 1. Term – Cheapest – No Cash Value 2. Whole – Pay Same Premium get Same Coverage – Entire Life Does Accumulate a Cash Value 3. Universal – Can Eventually Stop Paying Premium and Still Covered Does Accumulate a Cash Value

Health Insurance

1. Disability – Pays You an Income if you Can’t Work

Health Insurance 1. Disability – Pays You an Income if you Can’t Work 2. Medical – Pays Your Doctor Bills

Health Insurance 1. Disability – Pays You an Income if you Can’t Work 2. Medical – Pays Your Doctor Bills HMO –Health Maintenance Organization – Pays everything but only if you Go to the right Dr.

Health Insurance 1. Disability – Pays You an Income if you Can’t Work 2. Medical – Pays Your Doctor Bills HMO –Health Maintenance Organization – Pays everything but only if you Go to the right Dr. PPO –Preferred Provider Organization -Covers you Everywhere but You’ll Pay Less if you Go to the Right Dr.

Property Insurance – Pays When Your Property is Damaged

Property Insurance – Pays When Your Property is Damaged 1. Car

Property Insurance – Pays When Your Property is Damaged 1. Car 2. Home

Property Insurance – Pays When Your Property is Damaged 1. Car 2. Home 3. Other

Liability Insurance – Pays When You Damage Other’s Property

Liability Insurance – Pays When You Damage Other’s Property -Umbrella Policy – covers you everywhere

YOU MUST GET RENTER’S INSURANCE