What do you think is the best way to become a millionaire? Bell Work What do you think is the best way to become a millionaire?

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

What do you think is the best way to become a millionaire? Bell Work What do you think is the best way to become a millionaire?

Unit 2 Statistics 2 3 4 5 6 TOTAL A 16 B 12 14 9 8 49 C 10 34 D 11 30 F 27 AVG 74.8 75 76.7 70.2 69.3 73.2

What are the characteristics of demand? the desire and ability to buy a product the ability and resources to buy a product the willingness and desire to buy a product a credit card with a high limit.

To estimate elasticity, compare the _________ of a price change to the _________ of the change in total revenue. amount, amount direction, amount amount, direction direction, direction

At which stage of production does the concept of “diminishing returns” first become significant? Stage I Stage II Stage III It is significant throughout the production process.

At which point in the stages of production does the maximum profitable number of workers become most apparent? the end of Stage I the beginning of Stage I the end of Stage III the beginning of Stage III

Which term is generally associated with machines and other capital goods in the short run? total cost variable cost fixed cost marginal cost

Which of these best enables a firm to establish its profit-maximizing quantity of output? a periodic marginal analysis a periodic analysis of total revenue a periodic determination of its overhead a periodic determination of its break-even point

In a competitive market economy, prices are considered dictated uncompromising favorable neutral

Which is an example of a public good? a rock band the army a car bread

1st Quarter Reflection What did we do in class 1st quarter that was most helpful to your learning? Why? What did we do 1st quarter that made it more difficult for you to learn? Why? What would you like to see us do differently 2nd quarter? Why? What else would you like to tell me that would help you to learn better?

Personal Finance How can I avoid (or get out of) debt? How can I build wealth so I can live the way I want to live?

7 Baby Steps Basic emergency fund Debt Snowball 3 – 6 months expenses in savings Invest 15 College funding Home payoff Build wealth and give

Which baby step do you think you are on now? Reflection Which baby step do you think you are on now?

Bell Work For each statement below, indicate whether you agree or disagree: The amount of money you save depends on the amount of money you earn. You will save more when you earn more. A savings account at your bank is the best place to put your emergency fund It is okay to use your emergency fund to pay cash for big purchases such as a TV or a cell phone You should pay yourself first, before you pay your bills

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

Bell Work For each statement below, indicate whether you agree or disagree: The amount of money you save depends on the amount of money you earn. You will save more when you earn more. A savings account at your bank is the best place to put your emergency fund It is okay to use your emergency fund to pay cash for big purchases such as a TV or a cell phone You should pay yourself first, before you pay your bills

Baby Step 1: Basic Emergency Fund 70% of Americans live “paycheck to paycheck” The United States has a -.6% savings rate Only 41% of Americans save regularly Emergencies are going to happen $1000 in a savings account ($500 if you are still in high school) so you can deal with EMERGENCIES This is your first savings priority – do it fast

How long do you think it will take you to get $1000 in the bank? Reflection How long do you think it will take you to get $1000 in the bank?

Bell Work Indicate whether you agree or disagree with each of the following statements: Cash advance and title pawning are good ways to get cash when you need it Leasing a car is a smart way to drive a new car for a lower monthly payment. You need to have a credit card to rent a car or check into a hotel You spend about the same amount whether you pay with cash or you use a credit card.

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

Bell Work Indicate whether you agree or disagree with each of the following statements: Cash advance and title pawning are good ways to get cash when you need it Leasing a car is a smart way to drive a new car for a lower monthly payment. You need to have a credit card to rent a car or check into a hotel You spend about the same amount whether you pay with cash or you use a credit card.

Baby Step 2: Debt Snowball History of Credit Your great-great grandparents thought debt was evil Your great-grandparents thought debt was stupid Your grandparents borrowed on a few things Your parents borrow on almost everything The average American has 7 different credit cards The average interest rate on credit cards is 18%

Baby Step 2: Debt Snowball Credit and Teens 29% of teens are already in debt with an average amount owed of $293 29% of teens would prefer to buy things with a credit card than cash 51% say using a credit card is easier than cash

Baby Step 2: Debt Snowball Debt is heavily marketed to young people The fastest-growing group of bankruptcy filers consist of people under 25 years old Car payments don’t have to be a way of life You don’t need to build your credit score by applying for a credit card The best way to build wealth is to quit borrowing money and live on less than what you make

Bell Work What do you think is the advantage of paying more than the minimum monthly payment on a loan?

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

Bell Work What do you think is the advantage of paying more than the minimum monthly payment on a loan?

Creditor Total Payoff Minimum Payment New Payment Target $150 $15 Garage Sale Sears $250 $10 $25 Visa $500 $75 $100 MasterCard $1500 $90 $190 Car $4000 $210 $400 Student Loan $65 $465

If your debts are so large that you can’t make this work… credit.org Consumer Credit Counseling Service (CCCS) Negotiate with your creditors Eliminate interest rates on some loans One monthly payment to CCCS and they pay your creditors (less than the total of your current monthly payments) Can be debt free in 18 to 24 months

Baby Step 3: Complete Emergency Fund (3 – 6 Months) If you lost your job tomorrow, how much money would you need to survive? Rent Utilities Phone Insurance Food Medications Clothing Save in a Money Market Account from a mutual fund company

Invest 15% of your income into Baby Steps 4 and 5 Invest 15% of your income into college savings Roth IRAs pre-tax retirement plans

Make a plan for your money Tell it where to go before you get it Budgeting is the Key Make a plan for your money Tell it where to go before you get it Account for every dollar Stick to the plan no matter what If you receive unexpected money, have a plan for it

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