7th Grade Social Studies Personal Finance – Day 3-5 FACTORY SHOALS MIDDLE SCHOOL MR. L. SMITH 7th Grade Social Studies Personal Finance – Day 3-5

FIRST FIVE Agenda Message: Personal Money Management Vocabulary Quiz I is next Friday May 6th. Class Participation grades for bringing calculators to class starts TODAY. Standard: Explain personal money management choices in terms of income, budgeting, savings, spending, credit, and investing. Essential Question for Friday April 29th : What average percentage rates should be used for a household budget? Warm-up: List three things that you need in order to make an effective budget. Today We Will: Personal Money Management- Household Budgets Using a Pie Graph Worksheet – Classwork

ANSWERS E.Q. Answer for Friday April 29th: Warm-Up: Housing – 30% Savings – 10% Food - 20% Clothing – 10% Transportation – 12% Entertainment – 4% Medical - 12% Emergency – 2% Warm-Up: Amount of income you have Amount of money going out (Needs, Wants, Savings, Donations) Knowledge of how you can make adjustments (or changes) in your budget if needed

PERSONAL MONEY MANAGEMENT What makes a good budget? Your ability to cover basic expenses Having cash for unexpected expenses Savings for the future

Personal money management Tips for Sticking To A Budget Shop with your budget in mind! Plan ahead for large purchases Compare prices at different stores

Personal money management Household Budget As a percent of total monthly income Housing costs (mortgage payment & Insurance) = 30% Food = 20% Transportation = 12% Medical (insurance plus additional expenses) = 12% Savings = 10% Clothing = 10% Entertainment = 4% “Just in Case” Funds = 2%

Personal money management Using a Budget Activity Worksheet Classwork Assignment