1. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

2. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

3. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

4. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

6. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

7. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

8. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Assignments For Today  Complete/Correct Resume Rough Draft, print, turn in  Complete station activity 1-6  Study Guide

9. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

10. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

11. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Student Budget  Save as Budget Template  Save again as Budget tracking Oct 2014

12. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

13. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

14. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Many factors influence daily financial decisions, ranging from age and household size to interest rates and inflation. Three main elements affect financial planning activities: life situation personal values economic factors

15. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Graduation (high school or college)  Engagement  Birth of a child  Career change  Changes in health  Divorce

16. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Angela just graduated from high school and will be going to college in the fall. She will move out of her parents’ house and live in the college dorms.

17. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Ideas and principles that a person considers correct, desirable, and important. Example: continuing school versus getting a job

18. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona She values independence, and so she plans to move to an apartment with a roommate in her sophomore year. She will experience more personal freedom, but with her independence will also come more financial responsibility.

19. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Market forces – supply & demand  Financial Institutions – increase/decrease financial activity (interest rates)  Global Influences – competition  Economic Conditions – interest rates, unemployment, consumer spending, money supply, and gross domestic product

20. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Angela has been working while she was in high school and has been saving for college. Her parents will contribute to her college fund. She thought she had the full $15,000 fall tuition saved but just received a notice that the tuition has increased by 10%.

21. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Meet targeted financial goals sooner by allowing money to grow  Make money through compounding interest  Make money through investment growth

22. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Increase in prices of products  Measured by the Consumer Price Index (CPI)  As inflation rises, the purchasing power of the dollar falls.

23. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Increase in prices of products  Dan at the grocery store with a 5% inflation rate.  Inflation target of 2-3% per year

24. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  C.O.L.A = Cost of living adjustment – Pay increase from employers to keep up with inflation, keeps the purchasing power equal

25. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Disinflation – rising prices slow down Ex: Swimsuits in the winter  Reflation – high prices followed by low prices and then high prices again Ex: Gasoline prices  Hyperinflation – rapidly rising prices that are out of control Ex: Following a war  Deflation – decrease in prices Ex: Computers, phones, dvd players

26. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  A dollar you will receive in the future is less than a dollar you receive today Based on the assumption that prices are rising (Inflation)

27. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  A dollar today is worth more than a dollar tomorrow.  Lottery: Money now vs. future Take it now! Earn interest!

28. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Suppose you loan a friend $20 today. Your friend promises to pay you back the $20 one year from today.  The money you receive one year from now will not have the same value as today.  Prices will be higher one year from today and the money will not buy as many goods as today.

29. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  If money is put into a financial institution or invested, it may keep up with inflation (2- 3%).  The value of money saved depends on the amount invested and the interest rate.

30. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

31. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  The percentage rate paid on the money invested or saved  Higher interest = More Money Earned $1,000 Invested Compounded Monthly Interest Rate1 Year5 Years10 Years 4%$1,040.74$1,221.00$1,490.83 6%$1,061.68$1,348.85$1,819.40

32. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Earning interest on interest  “Make your money work for you” $1,000 Invested Compounded Annually at 10% Interest 1 Year2 Years $1,100.00$1,210.00

33. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Puts away $3,000 per year in her IRA account earning 10% - she does this for 10 years then stops.  Accumulates $1,239,564 by the age of 65  Waits until he is 28. He must contribute $3,000 to his IRA account earning 10% for 38 years.  Accumulates $1,102,331 by the age of 65 Sally Saver Ed Uninformed Difference of $137,233

34. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Invested at age 18 at 8% interest until age 65 ItemAverage Yearly Expense Future Value Daily cup of coffee at $2.50 $912.50$38,704.46 Eating lunch out 5 days per week ($5- $10) $1,300.00- $2,600.00 $55,140.60- $110,281.21 Daily can of soda or chips at $1.00 each $365.00$15,481.78

35. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Consumer Awareness (Video)  Chapter 5 Part 1

36. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona  Complete Paycheck Project  Complete Ch3 Vocab – show me when finished  Start Resume Project (Resume Worksheet)

37. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

38. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

39. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Rational buying o Economizing is saving money and spending only when necessary. o Optimizing is getting the highest value for money spent. Emotional buying –desire rather than logic (sad, angry) Impulse buying –spur of the moment without any planning

40. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Before You Shop Research and plan (create lists) While You Shop Avoid impulse and emotional buying After You Buy Keep receipts and warranties

41. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Project Time  Complete and turn in your FUTURE PAYCHECK activity Complete and turn in your  RESUME – (Resume Worksheet)

42. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

43. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

44. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

45. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

46. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

47. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

48. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

49. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

50. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Understanding Income Careers & College Purchasing Power Paychecks

51. Careers & College: Income and Education Demand vs. Supply The Business Cycle Hard vs. Soft Skills Formal vs. Informal Ed. The Interview The Resume Job Shadowing Job Description Purchasing Power: Time Value of Money Inflation & Inflation Types Compound Interest (Sally & Ed) Paychecks: Gross vs. Net Pay Required vs. Optional Deductions Taxes & Benefits & Perks W4 vs. W2 Forms Lifestyle vs. Venture Businesses Entrepreneur Overtime Employer Contributions Purchasing Power: COLA vs. CPI Consumer Awareness Buying Strategies & Products

52. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

53. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

54. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

55. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

56. 2.1.3.G1 © Family Economics & Financial Education – February 2006 – Get Ready to Take Charge of Your Finances – What Does Your Future Hold? Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona