1. Making Plans with Money
Vault Lesson 3

2. Expense Expense The cost of the things people spend money on
Household expenses include
Food
Heat
Cable
Internet
Dog food

3. Income
Income
Money earned form working and other means

4. Assets
Assets
What a person owns of value, such as jewelry, savings, art, a home, and a car.
Examples of household assets are
A car
A boat
A house

5. Budget
Budget
A spending plan people make in order to make sure there is enough income to cover all expenses
Having a budget is one way to make sure you have enough money to cover your needs and wants

6. Balanced Budget Balanced Budget
A budget with sufficient income to cover all expenses
If you have enough money to cover all your expenses then you have a balanced budget

7. Financial Institutions
A place, like a bank, that helps its members manage their money

8. Types of Financial Institutions
Bank
a place where people put their money for safekeeping and for ease of use
Credit Union
Just like a bank, only its members own it
Brokerage Firm
Helps people invest their money

9. Peer Pressure Peer Pressure
Doing stuff just because your friends are doing it, or because your friends told you to, because you want your friends to like you and think you are cool

10. Peer Pressure and Purchases
When shopping if you buy something you need or you buy something because YOU want to then you are NOT giving into peer pressure.
While shopping an example of peer pressure would be
Buying something because your friends tell you to

11. Making Purchases
The best reason to buy something is because you NEED it not because you want it or because it is in style

12. Paying for Purchases
There are several different ways you can pay for the items you buy. You can use
Credit cards
Debit cards
Cash

13. Methods of Payment Credit Card
A plastic card used to make a purchase on credit. This creates a loan and the issuer of the card will later collect payment for the purchase.
Debit Card
Debit cards pull money out of your checking account. Debit cards do not create a loan like credit cards do.
Cash
money in the form of bills or coins

14. Paying for Purchases
If you are shopping and want to pay for the items by using only money in your checking account you would use a debit card.
Debit Card – Cash in bank account
Credit Card – Loan
Cash

15. Comparison Shopping Comparison Shopping
Finding out whether or not what you are about to buy can be found for a better price or in better shape at a different store
When shopping the best way to make sure you are getting a good value for your purchase is to compare prices and make sure you really want it

16. Charity
Charity
Giving resources or volunteering time to help those in need
Ways to be charitable
Volunteer at a soup kitchen (a place people who do not have food can go and get a free meal)
Donate items to hurricane or flood victims

17.
Use the link above to go to the Vault web site.
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Complete Lesson 3: Making Plans with Money
You might want to review this PowerPoint before you take the 10 question post assessment for this lesson.