1. Managing Money
Chapter 30

2. Learning to Manage
Good habits start early…by becoming a good money manager you can make your money work for you!
Saving Money:
The trick to saving is making it a habit.

3. Attitudes Toward Money
Personalities affect the way people manage money.
A conservative person tends to save more.
A more liberal person tends to save less.
People may use money to fulfill emotional needs:
Security
Status
Need for love or respect

4. Living on a Budget Step 1: Determine Income – how much do you make?
Step 2: Record Expenses – keep track of what you actually spend for a period of time
Fixed expenses
Flexible expenses
Step 3: Create a Plan – determine your financial goals and make a plan.
Step 4: Stick to your plan – keep track of your income and expenses to ensure that you are following your budget.

5. Types of Accounts Savings Accounts Checking Accounts
An account that holds money you deposit and pays you interest on it.
The amount earned depends on:
Amount of money in the account
Interest rate
How long the money is in the account
How often the interest is paid
An account that holds your money and allows you to pay for things by writing a check or using a debit card instead of cash.
To open an account you must:
Deposit money in a bank
Purchase checks
Request a debit card
Record expenses in register

6. What is interest?
Interest – Payment the bank makes to you in exchange for the right to use your money.
Principal – the original amount of money in an account or taken on a loan.
Simple Interest – interest that is paid only on the principal.
Compound Interest – money you earn on your deposit plus previous interest.