1. CREDIT AND BUDGETS

2. MONEY Each person makes unique decisions about money Most people have a mixture of different attitudes, values and beliefs about money. Statistics show that the average person earns $1.5 million. The question becomes, what do you do with the money you earn throughout your life?

3. MONEY Earning – Making money through investments, employment, etc. Budgeting – Deciding how to save, use, and invest your money. Time-value of money – Saving – Spending – Compound interest

4. SAVINGS In banking: – Banks offer savings accounts as a place to safely store your money for future purchases. – Why do this? – Banks offer interest on your savings accounts in order to attract you to do business with them. – Interest rates vary per account created.

5. SAVINGS Bank of America & Wells Fargo Standard Savings Account Minimum Balance: $300 per day Penalty for less than $300: $5 Interest Rate: 0.01%

6. INTEREST Money that is added to the principal. – Used as a means of making profit or incentive for banks. Debt – Interest is used as a means to make profit on loaned money. Bank Accounts – Interest is used as an incentive to keep your money within the bank. Compound Interest – Interest that is added to the principal, so that the interest also earns interest at any given timely interval.

7. COMPUND INTEREST Principal: $1000 Interest Rate: 15% compounded annually Total after one year: $1150 One year passes… Principal: $1150 Interest Rate: 15% compounded annually Total after one year: $1322.50 Table on page 320.

8. CREDIT Money lent for any purchase. Usually used for large purchases. Balance due at end of next billing cycle. Minimum payment required to avoid penalty. Credit Score: Shows your level of risk when people lend you money. – Higher value means you are less likely to be late or not make your payments. Loans & Credit Cards

9. CREDIT (WELLS FARGO STANDARD)

10. CREDIT (BANK OF AMERICA STANDARD)