2. Teaching objectives Section I Are You Clear About Your Financial Goals? Learn to manage your extra money. Section II Be Wise When Using Your Credit Be acquainted with the advantages and disadvantages of credit cards. Section III Managing Personal Finances Be clear of your short-term and long-term goals.

3. Warm-up Do you have any ideas about managing your money? If you think you have financial management skills, where did you learn them? Do you make a budget for your money? How do you use your money in different stages of your life

5. If we have extra money,

6. Save some in the bank We can have demand deposits and time deposits. If we want a more stable financial future, we're going to need to save money -- not spend it long before we make it. ------ BY SUSAN TOMPOR FREE PRESS COLUMNIST October 15, 2008

7. stocks Each type of stock has a unique risk and reward potential. bonds There are three primary bond types : government, corporate and municipal. cash It is considered the most stable portion because it typically returns an original investment to the owner. foreign currencies Invest in

8. dividends: payments made by a corporation to its shareholder members. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings ), or it can be paid to the shareholders as a dividend. corporation shareholder profit retained earnings insurance : health, life, property, motor, travel, unemployment, work injury, pension, home insurance ( covering your home and contents against a fire, flood or break-in )

9. collections : philately, coin / art / antique collections Join an investment and collection club. gold, silver, jewelry property : real estate ) Make a Real Estate Investment and See a Huge Return. Buy low, sell high,

10. Listening in Dialogue 1 P69 Lexical items : real estate buck : an amount of money stun, yield : pigeon room / house: stock Mutual funds :

11. Types of Stock Mutual Funds Stock funds : Index funds Sector funds Buying mutual funds International funds

12. Dialogue 2 P70 drop off : take ( sb. /sth. ) part of the way you are going --- dough : ( slang ) money A credit rating assesses the credit worthiness of an individual, corporation, or even a country. Credit ratings are calculated from financial history and current assets and liabilities. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan.

14. Whatre the advantages and disadvantages of using the credit card ?

15. Advantages: 1. The biggest advantage for the consumer is expressed by the phrase Buy now, pay later. There is no need to save up money in advance. 2. It is convenient for all of us to withdraw the money in a quick way. 3. Every month the credit customer receives a bill. The bill makes it easier to remember when and where purchases are made.

16. 4. Credit cards can be used when something unexpected happens. This is very important if you dont have any cash with you. 5. It protects the owner. If a credit card is lost or stolen, the owner only has to call the credit company, and the credit company will stop the credit card number, No one else can use it. So the owner doesnt have to worry about losing the card.

17. Disadvantages: 1. Consumers tend to overspend their money. In fact, the credit tends to encourage overspending. 2. If the customer doesnt return the money to the bank in time, the card will be taken away. It will be very difficult for him to get another credit card in the future.

18. 3. The credit card is not convenient as you can't use it anywhere. 4. To withdraw cash from the credit card has to pay high interest. 5. If you lose the credit card, you will lose more money than other ways.

19. News Report 1 P72 dip into : take money out of your savings frivolous : trivial unworthy of serious attention;, treadmill : Jump off the medium–income, high–debt treadmill..

20. trigger : put in motion / move to act cardholder : live off / on : --- understanding balance :

21. Most of us must take out a mortgage to buy a house or tap into student loans. But should we really borrow against our future to buy one or two big-screen TVs? Or pull out the plastic to pick up fast food on the way to class? Should we buy whatever we want? Is that what you'd call living the dream? I'd call it setting yourself up for the American nightmare.

22. Manage Personal Finances

24. The goal of successful budgeting is learning to live within the bounds of your discretionary income The goal of successful budgeting is learning to live within the bounds of your discretionary income

25. As each month approaches – say, on the 20th of the previous month – make a list of your spending desires. Every month you have certain costs that do not change. The mortgage / rent, food, insurance payments, electricity and groceries). Those costs are fixed.

26. Some will be " needs," some will be " wants. A new suit for an interview that could increase your salary clearly fits the needs category and should be high on your list of costs that you cannot cut. The new video-game system is a want and should clearly fall to the bottom of the list, The items you consider only after your needs have been fulfilled.

27. Pair work Discuss how much money you need in a month. Record the answers in the blanks:

29. 1) Electricity _____________ 2) Rent _____________ 3) Phone _____________ 4 ) Water _____________ 5 ) Food _____________ 6 ) Nutrients _____________ 7 ) Air-conditioning ____________ 8 ) Entertainment ___________ ( Movies, Restaurant ) 9 ) Clothes ____________ 10) Books ____________ 11) Gifts _____________ 12) Others _____________

30. How much can be saved ? Are you short of money?

31. How to be independent financially Take on part time jobs such as tutoring, babysitting, product promoting, or working in a restaurant at weekend. Take out loans. Earn scholarships. When students think in terms of money for college, the first word that comes to mind is: scholarship. Write for money.

32. Sell stuff, make money online. Sell your second hand books. Create a website. With your own website, you can instantly earn more money than you can imagine. Join the army while at college and then come back to finish your education.

33. News Report 2 P75 trading floor prom : a formal dance held for a high- school or college class typically at or near the end of the academic year bond : icon : one who is the object of great attention and devotion; an idol

34. subprime : Imagine that you want to buy a house but are not sure you could meet the monthly payments. Your credit history is considered subprime not good enough for the lowest interest rates available. Rising Rates to Worsen Subprime Mess / Crisis

35. News Report 3 P80 hazard : to expose to danger or harm box cutter : (also called a, utility knife, a razor blade knife, a carpet knife, or a stationery knife ) is a common tool used in various for a variety of purposes dough mixer :