1. Characteristics of financial responsibility (How to Be Smart with your $$) Objective 7.13

2. Fiscal responsibility= (Fiscal= using $)
Managing $ and making good financial choices

3. Making good financial choices NOW can determine your financial future
Making good financial choices NOW can determine your financial future. $$ is easy to spend and once it’s gone, it’s gone!!
There are several tips you can follow to make sure you get the most from your $$

4. Tip#1: Make careful spending decisions
The first way to be responsible with your $$ is to spend carefully

5. Make careful spending decisions
Smart spenders avoid:
Impulse spending
Buying overpriced goods
Unnecessary spending

6. The Price of a Cup of Coffee

7. Budget= tool to track income ($), expenses, and spending
Tip #2: Keep a budget
Budget= tool to track income ($), expenses, and spending
Benefits of keeping a budget:
keep track of how you spend $$
shows how much $$ you have after paying expenses

8. Tip#3: Save and invest for the future
What expenses will you have in the future??
-car? -travel? -college?
-apartment? -house?
Put $$ aside NOW to pay for the FUTURE

9. Tip#3: Save and invest for the future
Save your money!!!
Save a little to save a lot!!
$20 a month=$240 a year
5yrs=$ yrs= yrs=3600

10. Tip#3: Save and invest for the future
Invest your money!!!
Invest $$ into stocks, bonds etc. and watch it increase over time

11. Tip #4: Use credit wisely
Credit= Buying now, paying back later w/ interest
Allows you to make purchases of things you cannot afford, pay back little each month

12. Tip #4: Use credit wisely
BEWARE!!!

13. Tip #4: Use credit wisely
BEWARE!!!
interest adds up
Easy to fall behind on payments
Bad credit can prevent important future purchases

14. Tip #4: Use credit wisely

15. Tip #5: Have insurance Insurance=
A plan to protect property and cover costs of major expenses
EX- (Car, Medical, Home)

16. Tip #5: Have insurance
Having insurance can protect you from having to pay LARGE expenses
Ex- ER visit w/ insurance $100
ER visit w/o insurance $5,000

17. Tip #6: Understand Contracts and warranties
Certain products require you to sign a contract or enter a warranty agreement. These are LEGAL agreements between buyer and seller…
Do You Know What You are Agreeing to??

18. Tip #6: Understand Contracts and warranties
Business agreement to guarantee certain terms are met
Ex- 2yr contract on new phones, customer cannot cancel phone service

19. Tip #6: Understand Contracts and warranties
Warranty=
Product protection plan,
protects against buying bad products
Ex- 50,000 mile warranty on a new car
If car breaks before 50,000 miles, company will fix it!

20. Tip #6: Understand Contracts and warranties
NEVER sign or agree to something without reading EVERYTHING!!
You will be required by law to follow the agreement!