Career Orientation—2nd Edition Unit 8: Managing Your Money

Objective 1 - Management Methods Prevention Preparation Coping with financial challenges

Objective 2 - Saving and Investing Putting money aside for future use Investing Putting money to work to make more money

Objective 3 - Achieving Savings Goals Start now. Set a goal. Plan to save a realistic amount. Pay yourself first. Save regularly and consistently. Put savings in savings account. Use a combination of savings accounts.

TIP Carry only the amount of cash with you each day that you will absolutely need to spend. Having less cash (or blank checks) on hand will reduce the temptation to give in to impulse spending, which destroys a good savings and spending plan quickly.

Objective 6 - Fixed and Variable Expenses Fixed expenses: Rent/mortgage Other real estate Income/property taxes Other taxes Installment payments Lease payments Insurance Regular payments, contributions Dues Savings

Objective 6 - Fixed and Variable Expenses cont. Food Personal maintenance Self-improvement and education Recreation and entertainment Other expenses Utilities Charge accounts Medical and dental bills Transportation Household maintenance, repair Child care

Objective 7 - Benefits of Keeping a Budget Aids in establishing goals and priorities Helps in attaining long-range goals Reduces wasteful spending Provides useful financial records Opportunity for regular financial checkups

Objective 8 - Guidelines for Using a Budget Determine goals Estimate income Estimate expenditures Earmark money available Make expenditures according to budget Compare actual and estimated expenses Evaluate budget and revise as needed

Did You Know? The Great Depression brought a different approach to viewing economic security. American became aware that individuals were not always able to provide for their own security in a modern industrial society.

Objective 12 - Deducted By Law Social Security Federal income tax State income tax Unemployment insurance Workers’ compensation City income tax

Objective 13 - Deducted By Request From Paycheck Labor union dues Savings account credits Group insurance plan Tax shelters Company retirement plans

Objective 14 - Benefits Insurance Tax shelters Leave from work Workers’ compensation Retirement plans Profit-sharing programs Unemployment compensation Savings account credits Other?

Did You Know? The compensation that employers gave to workers changed over the 20th century, from simple pay to pay plus a wide selection of benefits.

Objective 15 - Pricing a Job Offer Set personal priorities Compare dollar value Be realistic about negotiating Calculate value and contribution

Unit Review 1. List three (3) ways to manage your finances through prevention, three (3) ways to manage your finances through preparation, and five (5) ways to cope with financial challenges. 2. Compare the meanings of saving and investing.

Unit Review cont. Complete the following statements about setting and achieving personal goals for savings. Start ___________________ Set a _______________goal or goals Plan to save a ___________ amount Pay ____________ first Save _____________and consistently Place your savings in a __________ account Use a ___________ of savings accounts

Unit Review cont. 4. List eight (8) examples of fixed expenses and eight (8) examples of variable expenses. 5. What are benefits of keeping a budget? 6. To use a budget, what must you estimate (two things)?

Unit Review cont. 7. What are four (4) of the items deducted by law from your paycheck? 8. What are three (3) items that you can request be deducted from your paycheck? 9. What are six (6) of the benefits often reflected in a paycheck?

Unit Review cont. 10. Complete the following guidelines for pricing a job offer. Set your personal ________________. Compare the ____________ of the job offer to your current job or other offers. Be realistic about ________________. Calculate your ___________ and your ______ to the organization in advance.

Unit Review cont. 11. Total wages or salary after deductions is called _______________.

Career Orientation—2nd Edition Copyright 2007 Curriculum and Instructional Materials Center, Oklahoma Department of Career and Technology Education