2. Vocabulary Disposable Income Discretionary Income Budget Income Expenses Credit Down Payment Annual Percentage Rate (APR) Collateral Bankruptcy Interest Principal Return Stock Dividend Bond Mutual Funds

3. Consumer Rights Federal and state laws protect consumers from buying bad products. Warranty: a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time. Many products undergo intense product testing, either by the producers or a third party, before coming to market.product testing

4. Smart Buying Strategies Research products. Consumer Reports: Service which provides reports on thousands of products. Consumer Reports: Reviews: look at reviews of products, the more reviews there are the better! Reviews: Sometimes warranty's must be purchased for products. Sometimes they come with the product for free.warranty's

5. Planning and Budgeting Budgeting splits up your disposable income to be able to pay your expenses until your next paycheck or income period.

6. How to Make a Budget 1.Calculate your disposable income. 1.Tax BracketsTax Brackets 2.Calculate your immediate necessary expenses per pay period (usually every two weeks, or monthly). 1.Housing (rent/mortgage/utilities), food, gas, healthcare, car insurance, car payments*. 3.Determine how much you want to save. 4.What’s left over is your discretionary income.

7. Warren Buffet Video

8. Credit Credit is money given to you without an immediate trade of work for income. But always remember, this money is not free!!! You have to pay for this money later: that payment is called interest. Always add in the price of credit over time to know if you can afford it! Mortgage Calculator.Mortgage Calculator.

9. Revolving Credit A revolving credit line is one that involves different payments each month, depending on how much you utilize that particular line of credit. The amount you pay is subject to a monthly minimum payment and you have the option to push the rest of what you owe to the next month, subjecting yourself to additional interest in exchange for extra time.additional interest The most common examples of revolving accounts are credit cards. Home equity lines of credit (HELOCs), which allow you to borrow against the value of your home, also fall under this category.credit cards

10. Installment Credit As opposed to a revolving credit line, an installment account has a fixed payment due each month. The total amount borrowed with an installment account is to be paid back over a set period of time and a set amount of interest is charged over the duration of the loan. Installment accounts include any loans on your credit report. Mortgages, auto loans, student loans, business loans and home equity loans are all paid back as part of an installment plan and fall under this category.home equity loans

11. Sources of Credit Credit Cards Banks Merchants: installment plans. Government Loan Companies

12. How to Get Credit Credit is given out based on the borrowers ability to pay. Credit scores give businesses information on potential borrowers.

13. How to Get Credit A credit reporting agency (CRA) is a company that collects information about where you live and work, how you pay your bills, whether or not you have been sued, arrested, or filed for bankruptcy. All of this information is combined together in a credit report. A CRA will then sell your credit report to creditors, employers, insurers, and others. These companies will use these reports to make decisions about extending credit, jobs, and insurance policies to you. You are entitled to order (every 12 months) a free copy of your credit report from each of the major credit reporting agencies (Equifax, Experian, and TransUnion) through AnnualCreditReport.com. This website is the only one that is government authorized to provide you with free copies of your credit report.AnnualCreditReport.com

14. How Credit Cards Work How credit cards work? Why use credit cards?

15. Pros v. Cons of Credit Pros Get money now. Learn financial responsibility. Build up credit score to get even better credit later. Cons Can quickly get expensive if not paid off correctly. Future income never guaranteed.

16. Saving and Investing Saving is the opposite of consumption. Puts money away to be used later.

17. Types of Savings “Putting it under the mattress” Bank Accounts: savings/ checking Money Market Funds Certificates of Deposit Investments

18. Types of Savings Bank Savings Account Accounts at a bank, saving association, or credit union. Interest rate is relatively low. Depositor can withdraw money at any time. Up to $250,000 insured by FDIC.insured by FDIC Certificates of Deposit Bank notes for a set period of time at a fixed rate of interest. Interest rates are usually higher than rates for bank savings accounts. Vary, generally from 6 months to 5 years. Money Market Account Savings accounts offered by banks that require a high minimum balance. Interest rates are usually higher than rates for regular bank savings accounts. Depositor may withdraw funds at any time. U.S. Savings Bonds The U.S. government issues savings bonds as one of its way of borrowing money. Interest rate is usually higher than rates on bank savings accounts. Good for medium and long-term savings goals. Stocks Partial ownership in a company.Worth/losses are determined by market forces. Can be bought and sold whenever.

19. Investments Stocks Bonds Mutual Funds Private Businesses

20. Stocks Partial ownership of a company. Some companies pay dividends: a cash payout each quarter. This money is a portion of the overall profit. Companies not required to pay dividends. No guarantee stocks will make money as an investment. If business goes out of business, stock is worthless. Stocks are not insured by government like bank accounts. Stocks are bought and sold as commodities. Their worth goes up or down based on how much people think they are worth, or how much that will be worth in the future. Chipotle Stock

22. Stock Split Company increases its’ shares, decreases each share price, but keeps the overall market capitalization (worth). Take, for example, a company with 100 shares of stock priced at $50 per share. The market capitalization is 100 × $50, or $5000. The company splits its stock 2-for-1. There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $25. The market capitalization is 200 × $25 = $5000, the same as before the split.

23. Bonds A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer. Introduction to bonds.

24. Mutual Funds An investment program funded by shareholders that trades in diversified holdings and is professionally managed.

25. Achieving Your Financial Goals Most important part of achieving your financial goal is budgeting. Know how much things cost and how much your income is.