1. Personal Money Management
Mr. Banks

2. SS8E3 Explain the principles of effective personal money management
Explain that income is the starting point for personal financial management.
Explain
Describe the reasons for and the benefits of a household budget.
Describe
Describe the reasons for and the benefits of saving.
Describe the uses of debt and associated risks.
SS8E3 Explain the principles of effective personal money management

3. Words to know
___________ - an amount of money spent, as a whole or on a particular thing.
__________ - the amount of money a person earns during a year.
___________- using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
___________ - setting aside of income for future use.
___________ - the amount a person purchases.
___________ - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

4. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
___________ - the amount of money a person earns during a year.
___________- using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
___________ - setting aside of income for future use.
___________ - the amount a person purchases.
___________ - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

5. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
___________- using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
___________ - setting aside of income for future use.
___________ - the amount a person purchases.
___________ - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

6. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
___________ - setting aside of income for future use.
___________ - the amount a person purchases.
___________ - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

7. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
___________ - the amount a person purchases.
___________ - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

8. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
___________ - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

9. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
Budget - a plan for spending
___________ - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

10. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
Budget - a plan for spending
Bankruptcy - a legal proceeding involving a person or business that is unable to repay outstanding debts.
__________ - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

11. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
Budget - a plan for spending
Bankruptcy - a legal proceeding involving a person or business that is unable to repay outstanding debts.
Credit - an amount of money loaned to a person that must be paid back along with additional interest.
___________- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

12. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
Budget - a plan for spending
Bankruptcy - a legal proceeding involving a person or business that is unable to repay outstanding debts.
Credit - an amount of money loaned to a person that must be paid back along with additional interest.
Debt- an amount of money borrowed by one party from another party.
___________ - an additional amount you pay to use borrowed money.

13. Words to know
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
Budget - a plan for spending
Bankruptcy - a legal proceeding involving a person or business that is unable to repay outstanding debts.
Credit - an amount of money loaned to a person that must be paid back along with additional interest.
Debt- an amount of money borrowed by one party from another party.
Interest - an additional amount you pay to use borrowed money.

14. Words to know Blooper’s word of the Day
Expenditure - an amount of money spent, as a whole or on a particular thing.
Income - the amount of money a person earns during a year.
Investing - using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits.
Savings - setting aside of income for future use.
Spending - the amount a person purchases.
Budget - a plan for spending
Bankruptcy - a legal proceeding involving a person or business that is unable to repay outstanding debts.
Credit - an amount of money loaned to a person that must be paid back along with additional interest.
Debt- an amount of money borrowed by one party from another party.
Interest - an additional amount you pay to use borrowed money.
Blooper’s word of the Day

15. Is a Financial Literacy Campaign Necessary?
How many families filed for personal bankruptcy in 2005?
__________
What is the percentage of families who live beyond their means?
_________
How many credit cards does the average household have?
What is the average debt of compulsive gamblers?
____________

16. Is a Financial Literacy Campaign Necessary?
How many families filed for personal bankruptcy in 2005?
1.5 Million Families
What is the percentage of families who live beyond their means?
_________
How many credit cards does the average household have?
What is the average debt of compulsive gamblers?
____________

17. Is a Financial Literacy Campaign Necessary?
How many families filed for personal bankruptcy in 2005?
1.5 Million Families
What is the percentage of families who live beyond their means?
40% of American Families
How many credit cards does the average household have?
____________
What is the average debt of compulsive gamblers?

18. Is a Financial Literacy Campaign Necessary?
How many families filed for personal bankruptcy in 2005?
1.5 Million Families
What is the percentage of families who live beyond their means?
40% of American Families
How many credit cards does the average household have? 9
What is the average debt of compulsive gamblers?
____________

19. Is a Financial Literacy Campaign Necessary?
How many families filed for personal bankruptcy in 2005?
1.5 Million Families
What is the percentage of families who live beyond their means?
40% of American Families
How many credit cards does the average household have? 9
What is the average debt of compulsive gamblers?
$70,000

20. Budgets and savings
What are the 2 MOST important pieces of a budget that you need to know before starting to make your budget?
______________ and
______________

21. Budgets and savings Income and
What are the 2 MOST important pieces of a budget that you need to know before starting to make your budget?
Income and
______________

22. Budgets and savings Income and Expenditures
What are the 2 MOST important pieces of a budget that you need to know before starting to make your budget?
Income and
Expenditures

23. Why should you save? “Savings is the portion of income not spent on current expenditures”
Sudden Loss of Income
Unexpected Medical Expenses
Breakdown of Necessary Appliance
Planning for Retirement
Education
Large Purchases
Ability to Pursue Opportunities
Volatility of Social Security
Longer Life Expectancy
Travel
Investments

24. The Burden of Debt
Every debt comes with a risk to both the borrower and the lender

25. Debt and Associated Risks
_____________ is an amount of money borrowed by one party from another party.
While we typically thing of debt as a _______________ consequence of poor planning or circumstances beyond one’s control, debt can provide ___________ opportunities for individuals.
Acceptable uses of debt include purchasing a home (___________), advancing ______________, starting or expanding a _____________, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the ____________ payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

26. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a _______________ consequence of poor planning or circumstances beyond one’s control, debt can provide ___________ opportunities for individuals.
Acceptable uses of debt include purchasing a home (___________), advancing ______________, starting or expanding a _____________, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the ____________ payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

27. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (___________), advancing ______________, starting or expanding a _____________, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the ____________ payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

28. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (mortgage), advancing ______________, starting or expanding a _____________, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the ____________ payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

29. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (mortgage), advancing education, starting or expanding a _____________, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the ____________ payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

30. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (mortgage), advancing education, starting or expanding a business, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the ____________ payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

31. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (mortgage), advancing education, starting or expanding a business, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the delayed payment for goods or opportunities and usually comes with a ____________, known as _____________ (an additional amount you pay to use borrowed money).

32. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (mortgage), advancing education, starting or expanding a business, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the delayed payment for goods or opportunities and usually comes with a cost, known as _____________ (an additional amount you pay to use borrowed money).

33. Debt and Associated Risks
Debt is an amount of money borrowed by one party from another party.
While we typically thing of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals.
Acceptable uses of debt include purchasing a home (mortgage), advancing education, starting or expanding a business, and fulfilling dreams.
However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future.
Debt allows for the delayed payment for goods or opportunities and usually comes with a cost, known as interest (an additional amount you pay to use borrowed money).

34. Car loans For example The interest would amount to $____________.
If you finance a vehicle for $20,000 with an interest rate of 3% for a 60 month period
the entire loan total would be $____________.
The interest would amount to $____________.

35. Car loans For example The interest would amount to $____________.
If you finance a vehicle for $20,000 with an interest rate of 3% for a 60 month period
the entire loan total would be $___21,562_________.
The interest would amount to $____________.

36. Car loans For example The interest would amount to $___1,562_________.
If you finance a vehicle for $20,000 with an interest rate of 3% for a 60 month period
the entire loan total would be $___21,562_________.
The interest would amount to $___1,562_________.

37. Credit- How much are you really spending?
Take the monthly rate and x by the number of months in the loan term
How much would a car cost if you had a 2% interest loan for 12 month?
How much would the same car at 2% cost if you had a loan for 48 months?
How much would a car cost if you had a 12% loan for 12 months? 48 months?

38. The cost of credit Any observations?
12 2% = ___________________ 48 2% = _______________
12 12% = __________________ 48 12% = _______________

39. The cost of credit Any observations?
12 2% = $15, % = _______________
12 12% = __________________ 48 12% = _______________

40. The cost of credit Any observations?
12 2% = $15, % = $15,620.64
12 12% = __________________ 48 12% = _______________

41. The cost of credit Any observations?
12 2% = $15, % = $15,620.64
12 12% = $15, % = _______________

42. The cost of credit Any observations?
12 2% = $15, % = $15,620.64
12 12% = $15, % = $ 18,960.48
Remember that the better your credit core, the lower interest rate you can get

43. Personal Finance & careers
This project is going to give you a chance to plan your “future”
You will…
Choose a career
Write a paragraph about why you chose that particular career (7-9 well formed sentences)
Research Career
Salary- Bureau of Labor Statistics
Training- Internship, Apprenticeship, College
Answer a question about the geography of your career choice
Create a basic budget
Includes lines for
Housing
Food
Transportation
Utilities
Insurance
Student Loans
Etc.

44. Blooper’s word of the day
Remember to fill out and turn in you Blooper Paper (BP)
Each correct BP is worth 1 point on a test