1. Personal Finance
Chapter 3

2. Establishing Financial Habits Share Save Spend®
Sharing
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3. Establishing Financial Habits Share Save Spend®
Sharing
Saving
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4. Establishing Financial Habits Share Save Spend®
Sharing
Saving
Spending
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5. Family Love Peace Success Charity Sports Environment
Establishing Financial Habits Your Values
Your values vary from those of others and influence your financial decisions
Family
Love
Peace
Success
Charity
Sports
Environment
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6. What do you think? Discussion What do you value?
What do you think most Americans your age value?
How do your values affect how you spend your money?
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7. Establishing Financial Habits Your Financial Plan
Determine your current situation.
Identify and prioritize your goals.
Develop a long-term plan.
Organize your records.
Set up a budget.
Keep it simple.
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8. Establishing Financial Habits Your Financial Plan
Determine your income.
Determine your expenses.
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9. Establishing Financial Habits Your Financial Plan
Identify and prioritize your goals.
Financial Goals
1. Buy new car
2. Pay off student loan
3. Move to bigger apartment
4. Buy new shoes
5. Vacation at Yellowstone
6. Eat at fine restaurant
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10. Establishing Financial Habits Your Financial Plan
Distinguish between short-term, medium-term, and long-term goals.
Adjust your plan and goals over time.
Short-Term Goals
1. Eat at fine restaurant
2. Buy new shoes
3. Move to bigger apt.
Medium-Term Goals
1. Buy a new car
2. Finish college
3. Vacation at Yellowstone
Long-Term Goals
1. Buy travel trailer
2. Pay off student loan
3. Save for retirement
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11. Your Financial Plan Sharing
Sharing is also called charitable giving, philanthropy, and altruism.
Sharing connects people and gives them a sense of pride.
Research an organization that meets your interests.
Volunteer now.
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12. Your Financial Plan Sharing Suggestions
Birthdays
Holidays
Service-learning
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13. What do you think? Discussion Why do people share?
Who benefits from people sharing?
What kinds of opportunities do you have to share in your community?
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14. Freely spend your money. Prioritize your goals.
Which of the following is not one of the suggested ways to plan your finances?
Set up a budget.
Set goals.
Determine your income.
Freely spend your money.
Prioritize your goals.
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15. Freely spend your money. Prioritize your goals.
Which of the following is not one of the suggested ways to plan your finances?
Set up a budget.
Set goals.
Determine your income.
Freely spend your money.
Prioritize your goals.
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16. Your Financial Plan Keeping Records
Organize your records.
Alphabetical
Numerical
Chronological
Manage your money with a computer-based system.
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17. Your Financial Plan Paying Taxes
Types of Taxes
Social Security / Medicare
Sales
Property
Estate
Income
User fees
FICA
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18. Your Financial Plan Paying Taxes: Forms
Form W-4: Withholding
Form W-2: Wage and tax statement
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19. Your Financial Plan Paying Taxes: Forms
Form 1040EZ
Form 1040A
Form 1040
State and local
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20. Your Financial Plan Calculating Your Taxes
Adjusted gross income (AGI) = sum of all sources of income − adjustments
Wages / business income
Interest income
Unemployment
Social Security / pensions
IRA contributions
Student loan payments
+$20,179 (Wages)
+$15 (Interest)
+$650 (Unemployment)
−$2,000 (Student Loan)
$18,844 (AGI)
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21. Your Financial Plan Calculating Your Taxes
Adjusted gross income (AGI)
Tax deductions
Itemized
Schedule A
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22. Your Financial Plan Calculating Your Taxes
Adjusted gross income (AGI)
Tax deductions
Itemized
Schedule A
Standard
2007 Standard Deduction (Fed)
$5,350 = Single
$7,850 = Head of household
$10,700 = Married filing jointly
$5,350 = Married filing separately
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23. Your Financial Plan Calculating Your Taxes
Adjusted gross income (AGI)
Tax deductions
Itemized
Schedule A
Standard
Tax credits
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24. Which of the following forms lists your wages and income from the previous year?
Form 1040EZ
Form 1040A
Form W-4
Form W-2
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25. Which of the following forms lists your wages and income from the previous year?
Form 1040EZ
Form 1040A
Form W-4
Form W-2
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26. What do you think? Discussion Why do we pay taxes?
What type of taxes do you pay?
What type of taxes are the most fair?
What are some examples of tax deductions and tax credits?
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27. The End
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