1. Warm UP 1.What is the difference between gross pay and net pay? 2.What is the difference between a deduction and a bill? 3.What is the difference between revenue and expenditures in your budget? 4.What is the difference between a premium and a co-pay on your insurance policy?

2. 1= That’s me 2= Sometimes 3= That’s not me 1. I count the change I’m given by cashiers in stores and restaurants. 123 2. I always pick up all the change I receive from a transaction in a store; even it’s only a few cents. 3. I don’t buy something right away if I’m pretty sure it will go on sale soon. 4. I feel a real sense of accomplishment if I buy something. 5. I always remember how much I paid for something. 6. If something goes on sale soon after I’ve bought it, I feel cheated. 7. I have money in at least one interest-bearing bank account. 8. I rarely lend people money. 9. If I lend money to someone repeatedly without getting it back, I stop lending it to that person. 10. I share resources (e.g. CDs, books, magazines) with other people to save money. 11. I’m good at putting money away for big items that I really want. 12. I believe most generic or off-brand items are just as good as name brands My Savings Style Survey

3. Add up your ratings and answer these questions. 12-15 Very aggressive saving style 16-20: Careful saving style 21-27 Fairly loose saving style 28-32 Loose saving style 33-36 Nonexistent saving style 1.What are the advantages and disadvantages of your saving style? 2.How do you think your saving style would affect your ability to keep to a budget? 3.If you are dissatisfied with your saving style, how might you be able to change it?

4. 5.3 manage a checking and savings account $371.00 $1029.00 $1200.00 Credit Card Savings Account Debit Card

5. 5.3 Credits and Debits

6. What is the purpose of a financial institution? An institution that collects deposits and provides a financial reason to do so. Types: financial reason Bank: give out loans, provides low interest rate Credit Union: give out loans, provides higher interest rate Insurance Company: pays money if someone is in trouble Investment Institution: helps individual to invest money in a place where they can make more (ex. Stock Market)

7. Debit vs. Credit Debit: Taking money out of your account (*NOTE* this is different than DEBT) Credit: Putting money in your account

8. Checking v. Savings Checking Account: A bank account where you can easily transfer and use the money

9. Checking Account cont… Debit Card: Money that can be easily transferred in any transaction from checking account (online, store, atm machine) Check: written statement asking for money to be taken out of checking account

10. Balancing your checking account Your first paycheck is $4000.00 Fill out the deposit slip Write in CHECK in the box under CASH Add this deposit (credit) to your account.

11. $516.27 $2576.21 $40.00 $46.23 $237.19 $15.72 Using Card Using Check #1000 ATM for cash Using Card Using Check # 1001 Using Card

12. 5.4 Compare and contrast the purposes of credit and debit Fill out the last blank check to Shinn Enterprises for Rent for this month. Your rent costs $425.85. Record This transaction in your check register.

13. Savings: A bank account where you store money and can earn money (interest) Interest: earning extra money for lending it out

14. Credit Credit: money is “credited/deposited” to your account as a loan (borrowing money) Interest: Paying extra money for borrowing

15. Types of Credit: Credit Card: can borrow a certain amount of money to spend Student loan Car loan Mortgage (home loan)

16. Credit line: how much money is available for borrowing “Financing”: borrowing money to pay for an item that you will pay off over time Debt: money that you owe

17. Collateral: the borrower agreeing to give up property in the event he/she can’t pay off the loan Ex. Foreclosure: giving up home as collateral when the borrower can’t pay it off.