1. Financial Literacy: Introduction and Financial Management
Mr. Ervin
East Hardin Middle School

2. What is financial literacy?
Knowing how to handle your finances.
Money is how our society measures economic value.
We exchange money for goods and services.
We expect money in return for labor.

3. Freedom!…Maybe
Having your own money gives you freedom. You’re in charge.
BUT as you get older, you’ll learn the risks and responsibilities that come along with money.
You can’t always buy what you want!
While it’s fun to spend money, you must learn to save.

4. Financial Management
Taking care of your money so that you can pay for your needs and as many of your wants as possible.
This requires a budget.
Set realistic limits on spending.
Includes: Income, Expenses and Savings

5. Budget TOTALS MUST MATCH Income Money received or earned.
Expense (fixed and flexible)
Money spent.
Saving
Money set aside for future expense.
TOTALS MUST MATCH

6. Family Budget Savings Housing Utilities
Transportation (car payment, insurance)
Charity
School Lunch
Food
Clothing
Medical
Entertainment
Allowances

7. Individual Budget Income Expense Allowance, Earnings, Gift
College Fund
Spending Monet
Donation
Flexible Saving/Spending
Savings

8. Individual Budget Activity
Open a Microsoft Word Document and write down TWO short-term and TWO long-term financial goals.
Create a sample monthly budget using a $200 income.
You must have at least 2 sources of income and at least 3 expense categories.