Chapter Managing Economic Resources Chapter 8

Chapter Overview I.Introductory “Quiz” II.Thought for the Week III.Handout Packet IV.Consider the Following V.A Simple Budget & Homework Analysis VI.Critical Thinking VII.Homework

I. Introductory “Quiz”

1. Financial concerns are less commonly sources of stress to the upper classes as they are to the lower classes. False

2. Wealth and happiness are strongly correlated. False

3. Happy couples are significantly less likely to have major debts than unhappy couples. True

4. Money arguments in the home are usually about power, not about money per se. True

5. During financial difficulties, one’s coping abilities (the sense of confidence in their abilities to meet changing situations) are crucial. True

6. Money is often a taboo topic during courtship. True

7. The meaning of money is often different between family members and even spouses. True

8. The difference between the incomes of males and females in Black and Hispanic families is smaller than that in White families. True

9. It could be a very good idea for a couple to pool most of their income and keep smaller but separate checking accounts and credit cards. True

10. By saving a few hundred dollars a month over 30 or 40 years, a person can become a millionaire. True

II. Thought for the Week: Fix it up. Wear it out. Make it do, Or do without.

III. Handout Packet: What Does Money Mean to You?

IV. Consider the Following A.The Nature of Interest B.The Ferrier’s “Deal” C.Mental Set

“Interest is a good servant but a terrible master.” Joseph Wirthlin

“Interest never sleeps nor sickens nor dies; it never goes to the hospital; it works on Sundays and holidays; it never takes a vacation…Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you. J. Reuben Clark Jr.

“Once you understand the nature of interest, you want it coming in, not going out.” Douglas Busaith

IV. Consider the Following (cont.) A.The Nature of Interest B.The Ferrier’s “Deal” C.Mental Set

Spend less than you earn. Learn to save. Honor your financial obligations. Buy life insurance Teach your children to follow your example

V. A Simple Budget & Homework Analysis A.The Budget B.Analyze “Expenses” Homework C.Big Discussion D.Collect Homework

VI. Critical Thinking: Do not leave yourself or your family unprotected against financial storms…Build up savings. Ezra Taft Benson Get out of debt and stay out of debt. The great majority of all our troubles today is caused through the failure to stay out of debt. Harold B. Lee In light of the above, when is it OK to go into debt?

VII. Homework A.New Couple Budget B.Reaction Paper