The Game of Life http://www.michaelkreynolds.com/the-game-of-life/

What you will learn: College, Finding your Net Income and Gross Income, Checks, Loans, Interest, Insurance, Credit and Debit Cards, Savings and Checking Account, renting vs. buying, Retirement

College Degree Types Associates Degree Bachelors 2 years Bachelors 4 years Master’s (Graduate Degree) 1 ½ to 2 years Doctoral Degree (Professional Degree) Doctor of Philosophy (Ph.D.) Juris Doctor (J.D.) Doctor of Medicine (M.D.) Doctor of Dental Surgery (DDS) ?

Finance and Personal Finance Financing is the managing of money Personal Financing is managing your personal money

What is a budget? Budgeting – planning for the amount of money to be spent in a certain amount of time. It is based on your income and expenses. https://www.youtube.com/watch?v=8p-cAp-O28M

Pay Paycheck – weekly, biweekly, or monthly check made out to employees Paystub – like receipt, a paystub notifies the employee that their paycheck has been deposited or it is attached to their paycheck for their records. Pay period – a defined time frame when an employee with receive compensation

Income and Expenses Variable (Flexible) Income and expenses Income – a flexible amount of money earned ex: tips Expenses – a flexible amount of money spent ex: groceries, amount of gas, entertainment Fixed income and expenses Income – consistent and reliable amount of money earned over a short period of time Expenses – consistent amount of money spent ex: rent, mortgage Cash flow – Incoming and outgoing cash income vs. expenses

Net Income and Gross Income Salary per year/hour Net income Take home What is taken out? Retirement Medical insurance SS Federal Income Taxes

Taxes Sales Tax Income Tax State Tax Vs. Federal Tax. Property Tax, Estate Tax (Death Tax), Gift Tax, Excise Tax (Sin Tax)

TAXES Taxes – a compulsory contribution to the government, levied on goods and service, income, and property Income taxes – taxes levied on income Federal Income Tax – Federal tax levied on income Medicare tax - A federal health insurance program, administered by the Social Security Administration, that provides health care for the aged. Social Security - any government system that provides monetary assistance to people with an inadequate or no income. The tax is to fund this program. Sales Tax – Tax levied on products and services sold

Tax Forms W-2 – A tax form filled out by employers for their employees so they can do their taxes W-4 – A tax form filled out by a new employee to tell the employer how much they need to withhold for taxes

Federal Tax Income Bracket

SS and Medicare Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program Medicare's Hospital Insurance (HI) program Tax rates as a percent of taxable earnings Rate for employees and employers, each Rate for self-employed workers OASDI HI Total 6.2% 1.45% 7.65% 12.4% 2.9% 15.3%

How to write a Check What to write:   Your Name 1001 Your Address 16-123/4567 City, State, Zip Date ______1_____ Pay to the order of _____2_____________________________________ $ __3______________ 4__________________________________________________________________________ dollars Bank’s Name Address For _5___________________________________ 6__________________________________ 1234567 0000000016093829387 1001 What to write:   1.Write the date: month, day, year.   2.Write the name of the person or business that gets the check.   3.Write the amount of the check in numbers 4.Write the amount of dollars in words. Write the amount of the cents in numbers. Draw a line to the word “dollars.” 5.Write a note to remember what the check was for. 6.Sign your name.

Check

CREDIT! Credit – The ability of a customer to obtain goods and services before payment Credit Cards – plastic card used by consumers to purchase goods and services on credit

Loans What is a loan? What are the main reasons for asking for a loan? Why do banks loan money? What is in it for them?

Loans and Interest A loan is money you get from the bank that you must pay back with interest. Mortgage is a loan on a house Interest is the fee for borrowing money Interest how banks make money. Interest rate is determined based on your Credit Score.

Insurance What is insurance, and why is it important? What kind of insurance can you have? Does the cost of insurance vary depending on: how old you are? How? Where you live? How? What you have? How? How reckless you are? How?

Insurance Insurance, life, car, home, health – a guarantee of compensation upon loss, damage, or death

Bank Account Checking Account – Linked to checks, debit cards, and automatic bill pay Savings Account – Earn a very small amount of interest. Why is it important to have a bank account?

Credit and Debit Cards

Debit Card What is a debit Card? What do you need to know to use a debit card? What is the risk in using a debit card?

Credit Card vs. Credit Score How does a credit card work? What is a credit score? How do you build your credit? Why is it important to have a good credit score? How do you get in credit card debt??

What is a savings account? What do you use a savings account for? College degrees, cost of living, utilities

What happens when you open an account What you need to open an account at a bank or credit union: Identification Picture ID, passport, etc your Social Security number money

Renting Vs. Buying Rent/Lease – pay a certain amount of money each month to live in/use Buy – own, your investment has the likelihood of being returned to you. Exemption – Cars depreciate in value

Retirement SS 401K 403B Roth Roth IRA TRS

Work Cited http://www.projectmoney.org/teaching/worksheets.html http://www.moneyinstructor.com/ http://www.investopedia.com/articles/investing/020614/learn-simple-and-compound-interest.asp