Personal Finance or.

Slides:



Advertisements
Similar presentations
Chapter 19 Lesson 2 Budgeting Your money.
Advertisements

Ch. 20 Section 1 Managing Your Money.
Credit/Consumer Rights
Warmup Why does the dollar on the left have value, while the one on the right does not? What is money? Define Salary? How does it differ from other types.
Warmup  Why does the dollar on the left have value, while the one on the right does not?
Warmup Why does the dollar on the left have value, while the one on the right does not?
Chapter 19, Lesson 3 Saving and Investing.
Personal Finance and Economics
YOUR ROLE AS A CONSUMER CHAPTER 3. MAIN IDEA: AS A CONSUMER, YOU PLAY AN IMPORTANT ROLE IN THE ECONOMIC SYSTEM CHAPTER 3 SECTION 1: CONSUMPTION, INCOME,
Your Role as a Consumer. Disposable and Discretionary Income Disposable – Income a person has left after all taxes have been paid – Used to buy necessities.
Chapter 16 Credit in America
WARMUP  Why does the dollar on the left have value, while the one on the right does not?
Chapter 20 Objectives: 7.02, 7.03, 8.07, 8.08,. Managing Your Money Consumer: someone who buys a product or service –Have rights and responsibilities.
Managing Your Money Consumer Rights Consumer: someone who buys goods or services You can enter any profession or business that you choose You can.
The Right to:  To purchase products and brands that you want and reject the others  To become any profession that you want  Enter into any enterprise.
Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.
Personal Finance The economy in our state is affected not only by national and global markets, but is also affected by actions and decisions we make about.
Chapter 19.4 The Economy and You. Consumer Rights and Responsibilities  Consumers have rights and responsibilities in our free enterprise system.  Consumerism.
Personal Finance and Economics
Credit. What is it? – the ability of a customer to buy goods or services before paying for them, based on an agreement to pay later. Always investigate.
 What are advantages of credit  What are disadvantages of credit.
Money, Banking, & Finance Money & Banking Federal Reserve Managing Your Money Planning & Budgeting Saving & Investing Bonds & Other Financial Assets The.
Managing Your Money Chapter 23.
Your Role as a Consumer Chapter 3. Consumption, Income, & Decision Making  Consumer – a person or group that buys or uses goods and services to satisfy.
Consumerism UNIT IV. Disposable and Discretionary Income Consumer- a person or group who buys or uses goods and services to satisfy needs/want Disposable.
Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.
Credit – You’re in Charge.  Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.
Unit 3 Economics Practical Economics: Credit, Debt, Loans, & Investing.
You and Your Credit UNIT VII – Personal Financial Literacy.
Economics. Chapter 18 Section 1 How Economics Works Economics is the study of how we deal with scarcity. ▫Unlimited needs and wants with limited resources.
MATH BELL RINGERS SKILLS FOR EVERYDAY By: Mindy Lingo M.Ed. Sooner Scholar University of Oklahoma.
Chapter 3 Your Role as a Consumer.
Personal Finance and Choices Chapter 11: Consumer Spending
UNIT VII – Personal Financial Literacy
Unit 5 - Personal Finance #
Spending, Saving, and Investing
Personal Finance & Economics
Money, Banking, Credit & Consumer Rights
Personal Finance.
Personal Financial Literacy
Credit / Borrowing Money
Becoming a Smart Consumer
math BELL RINGERS: Skills for Everyday
Student created review
Personal Finance (part II)
Theme 4: Banking and Credit
Credit/Consumer Rights
It’s just as exciting as you think!
Unit 6 Personal Finance.
Credit and Consumer Rights
Personal Finance & Economics
Preparing for College and Careers
Budgeting and Financial Planning
18 Consumer Credit 18-1 Credit Fundamentals 18-2 Cost of Credit
Sources of consumer credit
The Economy and You.
You the Consumer.
Budgeting and Financial Planning
Credit; in America Consumer Math.
Consumption, Income, & Decision Making
Budgeting and Financial Planning
Budgeting and Financial Planning
Interest, Payments, and Credit
UNIT VII – Personal Financial Literacy
Credit, Credit Scores, and Investing
Review Questions (Try with No notes)
Chapter 19.4 The Economy and You.
Chapter 6 Review.
Individual Responsibility and the Economy Unit 1 Mr. Vaccaro
$$$ Management What is the difference between credit & debit?
Presentation transcript:

Personal Finance or

Managing Your Money The consumer or someone who buys a product or service, has responsibilities: Income Types: Disposable- money after all taxes have been paid Discretionary- money after paying for all necessities; can be used on wants

Protecting Consumers caveat emptor- “let the buyer beware” Consumerism- movement to educate buyers about the purchases they make and demand better and safer products from manufacturers

Consumer Bill of Rights Right to a safe product- cause no harm Right to be informed-no fraud or misleading information Right to choose-variety of products Right to be heard-listened to when laws are being written Right to redress- payment of product caused damage or financial strain

Smart Buying Strategies Gather information-use consumer magazines etc. Use advertising but be careful Comparison shop- visit stores, check flyers, magazines, ads, etc. Look for brand name and identical generic products Think about used products VS.

Other Responsibilities Report a faulty product: Report immediately Use the warranty- promise of repair or replacement Contact the seller or manufacturer and suggest a fair solution

Other Responsibilities Keep accurate records of efforts to solve the problem Allow reasonable time to solve the problem Always contact the manufacturer personally by phone, e-mail or typed letter Keep your composure!

Make a Budget- Stick to it! The best way to handle your money is with a budget-careful record of all the money your ear and spend. Your income is the money your earn Your expenses are the money your spend on everything

How to make a budget Make a list of everything you spend for a couple of weeks Record everything you earn and it’s source Analyze your data- do you need to cut expenses and work more? Keep a surplus for emergencies Monitor your spending

Credit Borrowing money to pay for something now while promising to pay it later is credit

Credit Terms Lender- person who loans the money Borrower- receives the loaned money Interest- cost for the use of the money Annual percentage rate (APR)-the annual cost of credit expressed as a percentage of the amount borrowed

Credit Terms Credit rating- evaluation of the likelihood a borrower will default, not pay, a loan- use past payment history Collateral- property, house, car or other valuable items that a borrower pledges as security for a loan

Credit sources Banks Credit unions Finance companies Stores Credit cards- be careful!!!!!! ex.- $2,000 with 18% interest will take you 10 years to pay it off with minimum payments! $1,142 in interest! Some purchases require a down payment or part of the purchase price; usually large purchases like homes or cars

Credit Benefits and Drawbacks Allows you to buy now Teach financial discipline Helps the economy Can borrow too much Bankruptcy- inability to pay debts (stays on your credit for 7-10 years)

Why Save……. Saving gives other individuals and businesses borrowing power –place $ in bank- bank loans $ Save regularly- gets you use to it Have access when needed Earn interest-payment bank gives you for using your money

Savings Types Savings account- banks, savings and loans, credit unions can earn money on your principal, or amount initially deposited Checking account- some banks pay interest write checks from the account- don’t over spend or “bounce a check” Money Market Account-require a high balance CD- Certificate of Deposit long term US Savings Bond- loan money to US government

Investments Stocks- partial ownership Bond- lending money to a company or government Mutual fund- pools of money from groups of people

What kind of spender are you? Don’t be an impulse buyer- emotional purchase “on the spot”

One Million------------00/100 Can you write a check? 3-23- 2011 Tina Bartlett 1,000,000 One Million------------00/100 Bill Gates Gift