FINANCE$ “Dollars and Sense”

“How Do I Pay For Stuff??” When buying a product or service you can use… When buying a product or service you can use… Cash Cash Debit Cards Debit Cards Credit Cards Credit Cards Loans Loans Checks Checks

CA$H

CA$H The simplest form of payment. The simplest form of payment. Keeps your spending “in check.” Keeps your spending “in check.” You may not always have enough for big ticket items. You may not always have enough for big ticket items.

DEBIT CARD$

Closest to cash Closest to cash Amount of purchase is deducted from your bank account right away. Amount of purchase is deducted from your bank account right away.

DEBIT CARD$ If there’s not enough money in your account to cover your purchase: If there’s not enough money in your account to cover your purchase: Your card will be refused. Your card will be refused. Or- Or- You will be charged an overdraft fee. You will be charged an overdraft fee.

7 $igns of $mart Debit Card Use 1. Memorize and protect your pin. 1. Memorize and protect your pin. 2. Immediately record transaction 2. Immediately record transaction 3. Sign back of card 3. Sign back of card 4. Keep receipts 4. Keep receipts 5. Use your bank’s ATM 5. Use your bank’s ATM 6. Be aware of your surroundings 6. Be aware of your surroundings 7. Immediately report lost/stolen card 7. Immediately report lost/stolen card

CREDIT CARD$

Easy to take a “buy now, pay later” attitude. Easy to take a “buy now, pay later” attitude. You DO pay an interest amount on anything you don’t pay in full right away. You DO pay an interest amount on anything you don’t pay in full right away.

CREDIT CARD$ With unpaid balances, the “real” cost adds up fast. With unpaid balances, the “real” cost adds up fast. If you pay only the minimum balance each month, it could take years to pay off your balance. If you pay only the minimum balance each month, it could take years to pay off your balance. Credit card debt is one of the top financial problems teens face. Credit card debt is one of the top financial problems teens face.

LOAN$

LOAN$ Another form of credit. Another form of credit. You agree to pay interest for a set amount of time (months/years) in addition to the amount borrowed. You agree to pay interest for a set amount of time (months/years) in addition to the amount borrowed.

LOAN$ If you don’t make your payments on time, you can lose the item you purchased. If you don’t make your payments on time, you can lose the item you purchased. You can risk ruining your credit history as well. You can risk ruining your credit history as well.

CHECK$

CHECK$ When you write a check, money is deducted from you checking account balance once the merchant deposits it in the bank. When you write a check, money is deducted from you checking account balance once the merchant deposits it in the bank.

Using a Checking Account “Writing Checks”

6 Things The date The date Person receiving the check Person receiving the check Amount in numerical form Amount in numerical form Amount spelled out Amount spelled out Signature Signature Memo Memo

Deposit Slips Name Name Amount deposited Amount deposited The date The date How the money is being deposited How the money is being deposited

Recording Why is it important to record all charges or credits? Why is it important to record all charges or credits? Fill in the following: Fill in the following:

Recording Check number Check number Date Date Description of transaction Description of transaction Payment/debit Payment/debit Fee if any Fee if any Deposit/credit Deposit/credit Balance Balance

How to Save Just a few tips…

Keep Track of Spending  Try this: for 1 month, write down every penny you spend.  Whether it is $2 for a drink at the mall, or $200 dollars for your new video game.

Keep Track of Spending  Don’t be surprised to find that you’re spending a lot on things that you really don’t need.  Impulse purchases add up fast.  Stories?

Do It Yourself  Cooking your own meals.  Using a home dry-cleaning kit.  Changing your own oil in your car.  Be sure to stick to jobs you can handle.  Ideas?

Think Before You Spend  Wait a day or two before making a purchase.  Ask yourself: Do I really need a digital camera to take on my trip?  Could I get a disposable camera?  Could I borrow my sister’s camera?

Think Before You Spend  If you’re replacing an item that’s broken, first see if it makes sense to have the old one repaired.  Stories?

Get it For Less  Save money by choosing store brands.  Use coupons.  Watch for sales.  Shop at discount stores.

Get it For Less  Online shopping saves money too.   Buy in bulk when it makes sense.  Consider buying second hand  Platos closet  Stories?

Be Creative  You can get more use out of old things by seeing them in a new way.  Ripped jeans could be used as new shorts.  You can frame calendar pages or make something yourself for wall decorations.

Be Creative  Before investing in something new, look for a creative way to reuse something you have or create some new works of art!  Stories?

Bank Accounts Know the facts….

Minimum Balances You may need a certain amount in the account. You may need a certain amount in the account. If you drop below that level you have to pay a penalty. If you drop below that level you have to pay a penalty.

Fees Some accounts have a service charge each month just to maintain your account. Some accounts have a service charge each month just to maintain your account. You may also be charged for each check you write. You may also be charged for each check you write.

Fees You can be charged for each use of your ATM/debit card. You can be charged for each use of your ATM/debit card. Avoid accounts with these types of charges. Avoid accounts with these types of charges.

Transaction Limits Some accounts limit the number of withdrawals or other transactions you can make each month. Some accounts limit the number of withdrawals or other transactions you can make each month.

Types of Bank Accounts

Savings Account  Simplest type of account.  When you have money to deposit, you take it to the bank and give it to the teller.

Savings Account  When you want to take money out, you go to the bank and make a withdrawal.  If you prefer you can make deposits and withdrawals at an automatic teller machine (ATM).

Money Market  When you open a money market account, the bank invests the money you deposit.  This means that money market accounts pay higher interest rates than regular savings accounts.

Money Market  The catch is that you usually have to keep a minimum amount, such as $2,500 in the account.  Most money market accounts limit the number of checks you can write on the account.

CDs  With a CD (certificate of deposit) you agree to deposit your money for a certain length of time.  This can be anywhere from three months to five years.

CDs  This is in exchange for a specific interest rate that is usually higher than any other accounts.  If you withdraw your funds early, you pay a penalty.  Don’t commit for a long period if there’s a good chance you will need the money sooner.

Checking  You can use checks to pay for things you buy, and the money comes out of your account.  Using checks lets you make purchases without having to carry large amounts of cash.  Its also better to mail a check than cash.