1. 14 Chapter 14 Section 14.1 Everyday Financial Management Section 14.2
Manage Your Finances
Chapter 14
Section 14.1
Everyday Financial Management
Section 14.2
Use Credit Wisely 1

2. Section 14.1 Everyday Financial Management
When you manage your finances responsibly, you think about your income, expenses, and taxes, as well as investing for your future. 2

3. Content Vocabulary Academic Vocabulary gross pay net pay deduction
interest
debit card
reconcile
compound interest
insurance
401(k) plan
invest
diversify
shares

4. Financial Fitness
An essential part of becoming financially fit is to understand your paycheck and your bank accounts.
Payment for work can be in the form of hourly wages, piecework, salary, and commission.

5. Financial Fitness
Deductions will be taken from a paycheck for federal and state and local taxes, Social Security, Medicare, savings plans, and benefits.
deduction
Anything that is deducted from gross pay. 5

6. Income Taxes The biggest deduction is for federal income taxes.
Tax forms can be downloaded and printed from the IRS web site.
Have you ever filed a federal income tax return?

7. Bank Accounts
Banking can be done through ATMs, checks, debit cards, automated services, by telephone, and online.
Each month, it is important to reconcile your account, or check it for accuracy.
debit card
A card that deducts the cost of a purchase from the user’s bank account at the time of purchase.
reconcile
To compare accounts for accuracy.

8. Bank Accounts Banks pay you interest to use your money.
Interest can be earned from compound interest and money market accounts.
interest
The fee the bank pays you for the opportunity to use your money.
compound interest
Interest that is calculated on the deposits you make and on the interest you have already earned.

9. Prepare for the Future Being financially prepared is not just saving.
It also involves buying insurance, planning for retirement, and investing for the future.
insurance
Financial protection in the case of loss or harm.
invest
Using money to participate in a business enterprise that offers the possibility of profit.

10. Prepare for the Future
Investing is a long-term view of your financial picture.

11. Prepare for the Future
Investments bring certain risks, which can be avoided by following a few rules.
Investment options include CDs, bonds, stocks, and mutual funds.
What steps can you take now to help plan for your financial future?

12. Section 14.2 Use Credit Wisely
There are different types of credit including cash loans, sales credit, and credit cards.
Using credit has many financial advantages, but but it needs to be used wisely. 12

13. Content Vocabulary Academic Vocabulary credit creditor finance charge
credit report
credit rating
annual percentage rate (APR)
principal
terms

14. Understand Credit Be responsible when using a credit card.
Creditors expect you to pay back over a specified period of time for the money, goods, or services you purchase now.
creditor
Banks, finance companies, and stores that extend credit to consumers with the understanding that the loan will be paid back over a specified period of time.

15. Understand Credit
Types of credit include credit cards, sales credit, or cash loans.
Credit allows you to purchase expensive items and pay for them over time.

16. Understand Credit
The biggest disadvantage of credit is its potential cost.
Become creditworthy by establishing a credit history of paying debts in full and on time.
Typical questions for applying for credit include your employment, housing, and financial history.

17. Choosing a Credit Card
Understand the basic features of the various credit cards before choosing one.
Compare fees and terms of credit cards, including the annual percentage rate, the credit limit, fees, grace period, and special features.
annual percentage rate (APR)
The annual rate of interest that a company charges you for using credit.

18. Use Credit Responsibly
Set and follow rules about using credit.
Be realistic about your spending.
Save receipts to check on spending each month.
Warning signs include worry about debt, spending more than you earn, maxing out your card limits, and using one card to pay another.

19. Chapter Summary Section 14.1
Everyday Financial Management
Your financial fitness is determined by your ability to understand and manage your paycheck, bank accounts, income, and expenses.
Your income is affected by how you are paid and by the deductions that are taken out of your paycheck.

20. Chapter Summary Section 14.1
Everyday Financial Management
Managing your income is easier with bank accounts.
Insurance is a way to protect your income and possessions.

21. Chapter Summary Section 14.2
Use Credit Wisely
Banks and other organizations often extend credit to their customers.
There are both advantages and disadvantages to using credit.

22. Chapter Summary Section 14.2
Use Credit Wisely
It is important to choose the right card for your needs and to pay close attention to the terms and fees included in the agreement.
Credit should be used responsibly to avoid debt, high fees, bad credit, and other financial problems.

23. Review
Do you remember the vocabulary terms from this chapter? Use the following slides to check your knowledge of the definitions.
The slides in this section include both English and Spanish terms and definitions.
Start

24. gross pay ingresos brutos The total amount you earn.
El total de los ingresos que recibes.
Show Definition

25. net pay pago neto The amount of pay you receive after deductions.
El salario que recibes después de las deducciones.
Show Definition

26. interest
interés
A fee the bank pays you for the opportunity to use your money.
Un monto que el banco te paga por la oportunidad de usar tu dinero.
Show Definition

27. tarjeta de débito debit card
A card that deducts the cost of a purchase from the user’s bank account at the time of purchase.
Una tarjeta que deduce el costo de la compra de la cuenta del banco del usuario en el momento de la compra.
Show Definition

28. reconciliar reconcile Compare accounts for accuracy.
Comparar cuentas para verificar la precisión.
Show Definition

29. compound interest interés compuesto
Interest that is calculated on the deposits you make and on the interest you have already earned.
Interés que se calcula sobre los depósitos que haces y los intereses que has ganado.
Show Definition

30. seguro insurance Financial protection in the case of loss or harm.
Protección financiera en caso de pérdida o daños.
Show Definition

31. 401(k) plan
401(k)
A specific type of retirement plan offered by many companies.
Un tipo específico de pensión para jubilados que varias compañías ofrecen. 
Show Definition

32. invest
invertir
Using money to participate in a business enterprise that offers the possibility of profit.
Usar dinero para participar en una iniciativa de negocios que ofrece la posibilidad de ganancias.
Show Definition

33. Spread or increase variety. Ampliar o aumentar en variedad.
diversify
diversificar
Spread or increase variety.
Ampliar o aumentar en variedad.
Show Definition

34. shares acciones Individual units of ownership.
Unidades individuales de posesión. 
Show Definition

35. credit
crédito
Money, goods, or services obtained now based on the promise to pay for them in the future.
Dinero, bienes o servicios obtenidos ahora, basado en la promesa de que se pagarán en el futuro.
Show Definition

36. creditor
acreedor
Banks, finance companies, and stores that extend credit to consumers with the understanding that the loan will be paid back over a specified period of time.
Bancos, compañías financieras y tiendas que ofrecen crédito a los consumidores con el acuerdo de que el préstamo será pagado en un periodo de tiempo específico.
Show Definition

37. finance charge cargo financiero
Interest or an additional fee, such as a charge for a late payment.
Interés o cuota adicional, como el cargo por pago tardío.
Show Definition

38. credit report informe de crédito
A record of a particular consumer’s transactions and payment patterns.
Un registro de transacciones y de patrones de pago de un consumidor específico.
Show Definition

39. credit rating rango crediticio
An evaluation of a consumer’s credit history.
Evaluación de la historia de crédito de un consumidor.
Show Definition

40. tasa de porcentaje anual (APR) annual percentage rate (APR)
The annual rate of interest that a company charges you for using credit.
La tasa anual de interés que una compañía cobra por préstamos.
Show Definition

41. principal The original loan amount borrowed.
El monto original de un préstamo.
Show Definition

42. términos
terms
Conditions.
Condiciones.
Show Definition

43. The Amazing World of Food
End of
End Of
Chapter 14
Chapter 1
The Amazing World of Food