2. Will Work for Food Candy 1. p.1 If you bring back the packet 2.p.2 If you wrote a plan… Discuss with family… 3.p.4 If you did the 1 st week of 13-week Budget. 4.p.12 If you completed the five stocks.

3. Personal Management Merit Badge $ Lots of effort, but totally worth it!

4. HANDOUT Fill in the blanks. OR use your own pages. You may use the words I’ll suggest, or - You may use other words you like better! Brainless attendance

5. HANDOUT Boxed portions: To be reviewed with your Merit Badge Counselor. To help you in the future: Keep it! Read again in 5 yrs! If I go too fast, stop me. Bring this handout back next time: 2 nd ____________ Name ______________________________________ Date of merit badge classes: 1 st ____________ * AFTER you’ve completed EVERYTHING (ready to discuss)!

6. p.2, Requirement #1: Do the following: 1(a) Choose an item that your family might want to purchase that is considered a major expense. 1(b) Write a plan that tells how your family would save money for it. We can save money by: _____________________________ Item chosen: _______________ Approximate cost: ___________ HDTV Mostly _______ earnings, but each of us could contribute. $1,000

7. p.2, Requirement #1b (continued): 1(b)1. Discuss the plan with your merit badge counselor.* *When are you going to discuss this with your merit badge counselor? (FHE, or?) 2. Discuss the plan with your family. **When are you going to do this? 3. Discuss how other family needs must be considered in this plan.

8. p.2, Requirement #1c: c. Develop a written shopping strategy for the purchase: 1. Determine the quality of the item (using consumer publications or rating systems). _______________________________________ EBay, Amazon, Consumer Reports…

9. p.2, Requirement #1c: 2. Comparison shop for the item. Find out where you can buy the item for the best price. Call around Who you called:What you learned: ____________ ________________ Sleazy’s Pawn ShopDon’t go there!

10. p.2, Requirement #1c: 2. Comparison shop for the item. Find out where you can buy the item for the best price. Study ads Where you looked:What you learned: ________________ ____________________ Newspaper Online sellers Sears had a great sale Include shipping costs…

11. p.2, Requirement #1c: Did you find a great sale or a discount coupon? ________ ____________________________________________ Can you buy the item used? ___________________ Should you wait for a sale? ___________________ Maybe, but________ I could, but… Yes Consider alternatives:

12. p.3 Req. #2a: Prepare a budget reflecting: Track your actual. Your expected income (allowance, gifts, wages), Your expected expenses & savings. 1 st Week INCOME Expected Actual Allowance______ ______ Job______ ______ Gifts______ ______ _______________ ______ Total in ______ ______ EXPENSES & SAVINGS Expected Actual Donations______ ______ Savings______ ______ Savings (for… ______ ______ Save to Buy______ ______ Junk food______ ______ _______________ ______ Total Out ______ ______

13. INCOME Expected Actual Allowance _____ Job _____ Gifts _____ _______________ _____ Total in _____ OUTGO Expected Actual Donations ______ Savings ______ Savings (for… ______ Save to buy ______ Junk food ______ ______ _______________ ______ Total Out ______ $10 $30 $ 3 $30 $42 2(b). Compare expected income with expected expenses (outgo). determine steps to balance: working more EXAMPLE I can increase income by ___________ 2. If outgo exceeds income, or decrease expenses by_______________ buying less junk

14. INCOME Expected Actual Allowance _____ Job _____ Gifts _____ _______________ _____ Total in _____ OUTGO Expected Actual Donations ______ Savings ______ Savings (for… ______ Save to buy ______ Junk food ______ ______ _______________ ______ Total Out ______ $10 $30 $ 3 $12 2(b). Compare expected income with expected expenses. 2. If expected income exceeds expected outgo, state how you would use the excess money: I could have some for __________________ Another EXAMPLE better stuff later.

15. INCOME Expected Actual Allowance _____ Job _____ Gifts _____ _______________ _____ Total in _____ OUTGO Expected Actual Donations ______ Savings ______ Savings (for… ______ Save to buy ______ Junk food______ ______ ______ ______ Total Out ______ $10 $30 $ 3 $12 $10 $20 $50 $ 5 $20 $40 What actually happened? Presents This guy should have EXAMPLE $10 more now than 1 week ago. If you finish one week of expected and actual by next class...

16. (How about putting it on your pillow?) p. 3-7, Req 2a Track your actual income, expenses, and savings for 13 consecutive weeks. Income SourceActual ___________ _______ Total_______ Expenses WhereActual ___________ _______ Total_______ How are you going to remember to do this each day? Share this with your merit badge counselor.

17. p.8 Req. 3a, 3b Discuss with your merit badge counselor Five of the following concepts: a.The emotions you feel when you receive money: b.How the amount of money you have with you affects your spending habits: * If I have lots of money, I tend to spend ______ If I’d stolen the money, I’d feel _____ When I honorably earn money, I feel ______ more. If I don’t have my money, it is ______ to spend. harder (Unless I have a credit card, then its easy to spend money I don’t have.) Good Bad!

18. I’m usually less __________ about it. p.8, Req. 3c c.Your thoughts when you buy something new: Your thoughts about the same item 3 months later: I usually feel ___________________ excited happy excited happy

19. c. Explain the concept of: buyers remorse Often after buying something people feel _______ sorrow (remorse) Especially if they ________ $, when it is time to make payments, they feel sorry or have _______ _______. borrowed and wish they could undo the _________. purchase buyer’s remorse p.8 Req. #3c Discuss with your merit badge counselor Five of the following concepts:

20. p.8, Req. 3d, 3e 3d. How hunger affects you when shopping for food items: Did the item work as well as advertised? ___ _______ When hungry, I tend to buy. 3e. Your experience of buying an item after seeing or hearing advertisements for it. Not always. Once in awhile it is actually _____ than I expected. Often, the ad makes it sound _____ than it actually is. better better more

21. then, most of it gets ___________________ then into the ___________ p8, Req. 3f. Your understanding of what happens when you put money into a savings account: They pay me _______ for the use of my money. They can afford to because they charge the borrowers interest at a ______ rate than the rate they pay me. interest higher It goes into the ______________, teller’s drawer bank’s safe loaned out or invested or into the ___________ bank’s bank

22. Charitable Giving 3g. Explain its purpose and your thoughts about it: I think it is a _______ idea to give to a charity or church. Good charities use money to help the ____ and _____, build buildings for __________ and other __________ purposes. poor sick worship worthwhile

23. I can save _____ of my earnings for more important things I’ll need in the future. I can use my money for ____ worthwhile purposes. p.8, Req. 3h. What you can do to better manage your money: I can use ____ of it for junk. more less more

24. usually means: a ____ risk way to accumulate money. “Saving” p. 9, Req. #4. Explain the following to your mb counselor: 4a. The difference between saving and investing, including reasons for using one over the other. low- * My father seemed to want me to save ever penny I got. I didn’t like that. But, I learned to stash 10%!

25. Example Save $100 each month at 5%

28. û Now earning > $110+ each month

29. p. 9, Req. 4a Three Recommended Savings: 1. Save _____% in an Emergency Fund. Try to never, ever spend this money! 10 2. Save enough for your “_____ ______” expenses. Stuff you know you’ll be spending money on once a year! for sure 3. Save whatever you can just to _____ ______. buy stuff

30. Example Savings Goal:

31. p. 9, Req. 4a. Explain the following to your Merit Badge Counselor: 4a. The difference between saving and investing, including reasons for using one over the other. Stocks & Bonds “Investing” usually means ______ -risk with a hope of a ______ return. higher higher

32. Reasons for saving rather than investing: People who save money in a bank or credit union are much ____likely to lose it. And more likely to be able to get it when they ______ ___ p.9, Req. 4a (continued). Reasons for saving: People typically save money for future needs including ____________. emergencies less Banks and credit unions are usually very careful with our $, and (in some states—like Utah) our savings are insured by agencies of the U.S. Government: _____ & _______ FDIC NCUA want it

33. Reasons for investing rather than saving: Although the risk of loss is higher, and some investments require lots more ______, some investments earn ___ _____ money. p.9, Requirement 4a. Reasons for investing: People invest in hopes of earning ____ ______. more money lots more Stocks & Bonds work

34. p.9, Requirement 4b. 4b. Explain the concepts of return on investment and risk. Return on investment refers to the amount you receive __ _____ of the amount you invested. in excess Risk is a measure of the possibility of suffering harm or ____. loss (Why would anybody choose 5% when they could invest at 25%?) risk Also: The greater the rate claimed, the higher probability for _______. scams expected actual The higher the rate, the greater the ____.

35. p. 9, Requirement #4c Explain the concepts of simple interest and compound interest. Suppose you bury $1,000, and dig it up 20 years from now. Instead, suppose you put it in the bank and earn 5% for 20 years PRINCIPAL

36. p. 9, Requirement #4c Simple interest. Simple interest is: Interest paid only on the ________ balance. principal You withdraw the interest, and if you bury your earnings P R I N C I P A L INTEREST

37. p. 9, Requirement #4c Explain the concepts of simple interest and compound interest. Now, suppose you have them add your interest to your balance. interest. Compound interest: Interest paid on both the principal and previously paid _______ Principal Compound Interest Simple Interest

38. p. 9, Req. 4c Explain how these (simple interest & compound interest) affect the results of your investment exercise (p.12). If I save or invest $1000 and I spend all the earnings as I get it, I do not get the advantage of _____________. If I have my earnings added to the investment, I earn interest not only on the ________ but also on the ______ _________ compounding principal prior earnings Thus, I get simple interest and compound interest.

39. whether to ___, ___, ____, ____, or _____ a stock. p. 10, Req. 5 Select 5 publicly traded stocks from the business section of the newspaper. [Or, internet] Explain to your merit badge counselor the importance of the following information for each stock: a. Current price: It is important to know how _____ an investor can buy, and help him decide much The current price may be obtained ______, from a ____ ______, or estimated from _________. stock broker buy sell trade hold avoid newspaper on-line

40. p. 10, Req. #5b Explain to your MB Counselor the importance of: b. How much the price changed from the previous day: If it went down a lot, something might be seriously ______ with the company, wrong It is important to see if the price changed, and how _____, and whether it went __ or ____. muchup down Or, something might be seriously ______ with the ______ _______ in general. wrong stock market

41. p. 10, Req. 5c. Explain the importance of: c. The 52-week high and the 52-week low prices: If it went down a lot, something might be seriously ______ with the company, or with the stock market __ _______. wrong It is important to see if the price has been about the same, or ______, or _____ than it is now. higher lower It might be a good time to ___. But it might be a good time to _____ __. buy avoid it [Knowing this is enough to realize you need to know __ ___ ______!] in general a lot more

42. Example p. 10, Req. # 5 Obtain the business section of your newspaper

43. Example p. 10, Req. # 5 Obtain the business section of your newspaper and obtain the following for 5 stocks: Date of Newspaper: ________ Name1 st stockClose PriceNet Change 52-wk high “Name”“Last”“Chg”“1yrhi” _______________________ _________ ___________ Explain: The importance for this stock: Current price (est: _______) __________________________ Change from previous day: __________________________ The 52-week high: __________________________ 10/2/04 DeltaAir3.34+.1915.54 3.50Low enough to buy a bunch Gain 19¢ per share (good) Lost $12.20 p/share: danger Usually buy 100 shares at a time.

44. Example Should I buy? (on 8/28/06: 68¢, then down to $0)

45. SATURDAY Example

46. p. 10, Req. # 5 Obtain the business section of your newspaper and obtain the following for 5 stocks: (I’ve already given you 1, do the other 4 by next class for another candy) Date of stock quote: ________ Name 2 nd stockClose PriceNet Change 52-wk high “Name”“Last”“Chg”“1yrhi” _______________________ _________ ___________ Explain: The importance for this stock: Current price (est: _______) __________________________ Change from previous day: __________________________ The 52-week high: __________________________

47. Will Work for Food Candy Make sure your wrappers get in the garbage!!! Honor System 1. p.1 If you brought back the packet 2.p.2 If you wrote a plan… Discuss with family… 3.p.4 If you did the 1 st week of 13-week Budget. 4.p.12 If you completed the five stocks.