1. FACTORY SHOALS MIDDLE SCHOOL MR. L. SMITH

2. Agenda Message Agenda Message: Personal Money Management Vocabulary Quiz #1 is Friday, May 6 th. Bring your calculators to class everyday for a class participation grade of “100”. Standard: Standard: Explain personal money management choices in terms of income, budgeting, savings, spending, credit, and investing. Essential Question for Monday, May 2 nd : Essential Question for Monday, May 2 nd : What is “Gross Income”? What is “Net Income”? Warm-Up Warm-Up: What is the very first item you need to know before developing a budget? Today We Will: 1. Personal Household Budget 2. Gross Income & Net Income

3. E.Q. Answer for Monday May 2 nd E.Q. Answer for Monday May 2 nd : Gross Income is what you are paid “before” taxes and deductions are taken out. Net Income is what you actually receive in your pay check “after” taxes and deductions are taken out. Warm-Up: The first item you need to know before developing a budget is how much “income” you have.

4. Agenda Message Agenda Message: Personal Money Management Vocabulary Quiz #1 is Friday, May 6 th. Bring your calculators to class everyday for a class participation grade of “100”. Standard: Standard: Explain personal money management choices in terms of income, budgeting, savings, spending, credit, and investing. Essential Question for Tuesday, May 3 rd : Essential Question for Tuesday, May 3 rd : What is the average income for someone with a Bachelor’s degree? Warm-Up Warm-Up: What is the number one factor impacting your ability to make money? Today We Will: 1. Personal Household Budget 2. Annual Incomes based on Educational Achievement

5. E.Q. Answer for Tuesday May 3 rd E.Q. Answer for Tuesday May 3 rd : Average income for someone starting out with a Bachelor’s Degree is $47,500. Warm-Up: The amount of education and training that you have is the biggest factor impacting your ability to make money,

6. What makes a good budget? 1. Your ability to cover basic expenses 2. Having cash for unexpected expenses 3. Savings for the future

7. Tips for Sticking To A Budget 1. Shop with your budget in mind! 2. Plan ahead for large purchases 3. Compare prices at different stores

8. Household Budget As a percent of total monthly income 1. Housing costs (mortgage payment & Insurance) = 30% 2. Food = 20% 3. Transportation = 12% 4. Medical (insurance plus additional expenses) = 12% 5. Savings = 10% 6. Clothing = 10% 7. Entertainment = 4% 8. “Just in Case” Funds = 2%

9. Using a Budget Activity Worksheet Classwork Assignment

10. Annual Income of $46,300 (Bachelors Degree-4 year College) Compute monthly income Annual Income divided by 12 (months in a year) = $3,858 Compute monthly budget using average percentages

11. Monthly Household Budget Housing Cost $1,157.00 Food 771.00 Medical 463.00 Transportation 463.00 Clothing 385.00 Savings 385.00 Entertainment 154.00 “Just in Case” funds 77.00 Grand Total $3,855.00

12. Compare Annual Income of $28,800 (High School Graduate) Compute monthly income Annual Income divided by 12 (months in a year) = $2,400 Compute monthly budget using average percentages

13. Housing Cost $720.00 Food 480.00 Medical 288.00 Transportation 288.00 Clothing 240.00 Savings 240.00 Entertainment 96.00 “Just in Case” funds 48.00 Grand Total $2,400.00

14. Gross Income is what you are paid “before” taxes and deductions are taken out. Net Income is what you actually receive in your pay check “after” taxes and deductions are taken out.

15. Federal Taxes 25% State & Local Taxes + 5% Total Taxes 30% Deductions 5% Total Taxes & Deductions 35%

16. Agenda Message Agenda Message: Personal $ Management Vocabulary Quiz is Thursday May 7 th. Social Studies Progress Report goes home next Monday. Standard: Standard: Explain personal money management choices in terms of income, budgeting, savings, spending, credit, and investing. Essential Question for Tuesday May 5 th : Essential Question for Tuesday May 5 th : What average percentage rates should be used for a household budget? Warm-up: Warm-up: List three things that you need in order to make an effective budget. Today We Will: 1. Personal Money Management- Household Budgets 2. Using a Pie Graph Worksheet – Classwork

17. E.Q. Answer for Tuesday May 5 th : Housing – 30%Savings – 10% Food - 20%Clothing – 10% Transportation – 12%Entertainment – 4% Medical - 12%Just In Case – 2% Warm-Up: 1. Amount of income 2. Amount of money going out (Needs) 3. Knowledge of how you can make adjustments or changes in your budget if needed