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Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 1 Section 14.1 Everyday Financial Management Section 14.2.

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Presentation on theme: "Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 1 Section 14.1 Everyday Financial Management Section 14.2."— Presentation transcript:

1 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 1 Section 14.1 Everyday Financial Management Section 14.2 Use Credit Wisely Chapter 14 Chapter Manage Your Finances 14

2 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 2 When you manage your finances responsibly, you think about your income, expenses, and taxes, as well as investing for your future. Section 14.1 Everyday Financial Management

3 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 3 Content Vocabulary Academic Vocabulary gross pay net pay deduction interest debit card reconcile compound interest insurance 401(k) plan invest diversify shares

4 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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.

6 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 users bank account at the time of purchase. reconcile To compare accounts for accuracy.

8 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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. invest Using money to participate in a business enterprise that offers the possibility of profit. insurance Financial protection in the case of loss or harm.

10 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 10 Prepare for the Future Investing is a long-term view of your financial picture.

11 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 12 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. Section 14.2 Use Credit Wisely

13 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 13 Content Vocabulary Academic Vocabulary credit creditor finance charge credit report credit rating annual percentage rate (APR) principal terms

14 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 19 Chapter Summary Section 14.1 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. Everyday Financial Management

20 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 20 Chapter Summary Section 14.1 Managing your income is easier with bank accounts. Insurance is a way to protect your income and possessions. Everyday Financial Management

21 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 21 Chapter Summary Section 14.2 Banks and other organizations often extend credit to their customers. There are both advantages and disadvantages to using credit. Use Credit Wisely

22 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 22 Chapter Summary Section 14.2 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. Use Credit Wisely

23 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 23 Review Start 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.

24 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 24 gross pay ingresos brutos The total amount you earn. El total de los ingresos que recibes. Show Definition

25 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 25 net pay pago neto The amount of pay you receive after deductions. El salario que recibes después de las deducciones. Show Definition

26 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 27 debit card tarjeta de débito A card that deducts the cost of a purchase from the users 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 28 reconcile reconciliar Compare accounts for accuracy. Comparar cuentas para verificar la precisión. Show Definition

29 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 30 insurance seguro Financial protection in the case of loss or harm. Protección financiera en caso de pérdida o daños. Show Definition

31 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances (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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 33 diversify diversificar Spread or increase variety. Ampliar o aumentar en variedad. Show Definition

34 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 34 shares acciones Individual units of ownership. Unidades individuales de posesión. Show Definition

35 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 38 credit report informe de crédito A record of a particular consumers transactions and payment patterns. Un registro de transacciones y de patrones de pago de un consumidor específico. Show Definition

39 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 39 credit rating rango crediticio An evaluation of a consumers credit history. Evaluación de la historia de crédito de un consumidor. Show Definition

40 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 40 annual percentage rate (APR) tasa de porcentaje anual (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 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 41 principal The original loan amount borrowed. El monto original de un préstamo. Show Definition

42 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 42 terms términos Conditions.Condiciones. Show Definition

43 Glencoe Managing Life Skills Chapter 14 Manage Your Finances Chapter 14 Manage Your Finances 43 End of Chapter 1 The Amazing World of Food End Of Chapter 14


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