Making Plans with Money Vault Lesson 3

Expense Expense The cost of the things people spend money on Household expenses include Food Heat Cable Internet Dog food

Income Income Money earned form working and other means

Assets Assets What a person owns of value, such as jewelry, savings, art, a home, and a car. Examples of household assets are A car A boat A house

Budget Budget A spending plan people make in order to make sure there is enough income to cover all expenses Having a budget is one way to make sure you have enough money to cover your needs and wants

Balanced Budget Balanced Budget A budget with sufficient income to cover all expenses If you have enough money to cover all your expenses then you have a balanced budget

Financial Institutions A place, like a bank, that helps its members manage their money

Types of Financial Institutions Bank a place where people put their money for safekeeping and for ease of use Credit Union Just like a bank, only its members own it Brokerage Firm Helps people invest their money

Peer Pressure Peer Pressure Doing stuff just because your friends are doing it, or because your friends told you to, because you want your friends to like you and think you are cool

Peer Pressure and Purchases When shopping if you buy something you need or you buy something because YOU want to then you are NOT giving into peer pressure. While shopping an example of peer pressure would be Buying something because your friends tell you to

Making Purchases The best reason to buy something is because you NEED it not because you want it or because it is in style

Paying for Purchases There are several different ways you can pay for the items you buy. You can use Credit cards Debit cards Cash

Methods of Payment Credit Card A plastic card used to make a purchase on credit. This creates a loan and the issuer of the card will later collect payment for the purchase. Debit Card Debit cards pull money out of your checking account. Debit cards do not create a loan like credit cards do. Cash money in the form of bills or coins

Paying for Purchases If you are shopping and want to pay for the items by using only money in your checking account you would use a debit card. Debit Card – Cash in bank account Credit Card – Loan Cash

Comparison Shopping Comparison Shopping Finding out whether or not what you are about to buy can be found for a better price or in better shape at a different store When shopping the best way to make sure you are getting a good value for your purchase is to compare prices and make sure you really want it

Charity Charity Giving resources or volunteering time to help those in need Ways to be charitable Volunteer at a soup kitchen (a place people who do not have food can go and get a free meal) Donate items to hurricane or flood victims

http://vault.everfi.net Use the link above to go to the Vault web site. Log in Complete Lesson 3: Making Plans with Money You might want to review this PowerPoint before you take the 10 question post assessment for this lesson.