1. Personal Finance or

2. Managing Your Money
The consumer or someone who buys a product or service, has responsibilities:
Income Types:
Disposable- money after all taxes have been paid
Discretionary- money after paying for all necessities; can be used on wants

3. Protecting Consumers caveat emptor- “let the buyer beware”
Consumerism- movement to educate buyers about the purchases they make and demand better and safer products from manufacturers

4. Consumer Bill of Rights
Right to a safe product- cause no harm
Right to be informed-no fraud or misleading information
Right to choose-variety of products
Right to be heard-listened to when laws are being written
Right to redress- payment of product caused damage or financial strain

5. Smart Buying Strategies
Gather information-use consumer magazines etc.
Use advertising but be careful
Comparison shop- visit stores, check flyers, magazines, ads, etc.
Look for brand name and identical generic products
Think about used products
VS.

6. Other Responsibilities
Report a faulty product:
Report immediately
Use the warranty- promise of repair or replacement
Contact the seller or manufacturer and suggest a fair solution

7. Other Responsibilities
Keep accurate records of efforts to solve the problem
Allow reasonable time to solve the problem
Always contact the manufacturer personally by phone, or typed letter
Keep your composure!

8. Make a Budget- Stick to it!
The best way to handle your money is with a budget-careful record of all the money your ear and spend.
Your income is the money your earn
Your expenses are the money your spend on everything

9. How to make a budget
Make a list of everything you spend for a couple of weeks
Record everything you earn and it’s source
Analyze your data- do you need to cut expenses and work more?
Keep a surplus for emergencies
Monitor your spending

10. Credit
Borrowing money to pay for something now while promising to pay it later is credit

11. Credit Terms Lender- person who loans the money
Borrower- receives the loaned money
Interest- cost for the use of the money
Annual percentage rate (APR)-the annual cost of credit expressed as a percentage of the amount borrowed

12. Credit Terms
Credit rating- evaluation of the likelihood a borrower will default, not pay, a loan- use past payment history
Collateral- property, house, car or other valuable items that a borrower pledges as security for a loan

13. Credit sources Banks Credit unions Finance companies Stores
Credit cards- be careful!!!!!!
ex.- $2,000 with 18% interest will take you 10 years to pay it off with minimum payments! $1,142 in interest!
Some purchases require a down payment or part of the purchase price; usually large purchases like homes or cars

14. Credit Benefits and Drawbacks
Allows you to buy now
Teach financial discipline
Helps the economy
Can borrow too much
Bankruptcy- inability to pay debts
(stays on your credit for 7-10 years)

15. Why Save…….
Saving gives other individuals and businesses borrowing power –place $ in bank- bank loans $
Save regularly- gets you use to it
Have access when needed
Earn interest-payment bank gives you for using your money

16. Savings Types Savings account- banks, savings and loans, credit unions
can earn money on your principal, or amount initially deposited
Checking account- some banks pay interest
write checks from the account- don’t over spend or “bounce a check”
Money Market Account-require a high balance
CD- Certificate of Deposit long term
US Savings Bond- loan money to US government

17. Investments Stocks- partial ownership
Bond- lending money to a company or government
Mutual fund- pools of money from groups of people

18. What kind of spender are you?
Don’t be an impulse buyer- emotional purchase “on the spot”

19. One Million------------00/100
Can you write a check?
Tina Bartlett
1,000,000
One Million /100
Bill Gates
Gift