DO NOW!- Pick up the Billions in Change assignment Resume must be finished today. Billions in Change-Video

Go to- BLS. GOV-1. Click on Publications, 2 Go to- BLS.GOV-1.Click on Publications, 2. Click on Occupational Outlook Handbook Find the job/career that you are interested in, by using the search box or choosing form the job categories. Gather detailed information on (click on each tab): a).How to Become One b). Pay c).Job Outlook Create a FUTURE resume, based on the education, training, certifications, experience that you WILL have by the time you apply for your chosen career/job. Resume must be finished today. Email completed resume to: Mark.finlay@fwisd.org

DO NOW!- What is money?

Grade Check! Calculate the grade that you need for this 6 weeks, in order to pass the semester- Your grades must add up to a MINIMUM of 210 If you feel that you cannot achieve the minimum grade for this 6 weeks, that will give you a passing grade for the semester, you need to talk to me outside of class time.

Design a currency Design a currency for the United States. Do NOT be too concerned about what it looks like. Focus on what is necessary for a currency to work. What materials will you use to make your currency? Why will you use those materials? Why will it be worth something? What denominations will it be available in? (For example: $1, $5 etc) Why?

Money: Definitions, Measures, Time Value + Introduction to Quantity Theory

Money Defined Money is anything that can be used as: A medium of exchange A store of value A unit of account / Standard of Value Money works best when it meets these criteria: Portable Durable Divisible Acceptable Stable

The Three Uses of Money Money as Medium of Exchange A medium of exchange is anything that is used to determine value during the exchange of goods and services. Money as a Measure of Value/Unit of Account A unit of account is a means for comparing the values of goods and services. Money as a Store of Value A store of value is something that keeps its value if it is stored rather than used.

The Six Characteristics of Money The coins and paper bills used as money in a society are called currency. A currency must meet the following characteristics: Durability Objects used as money must withstand physical wear and tear. Portability People need to be able to take money with them as they go about their business. Divisibility To be useful, money must be easily divided into smaller denominations, or units of value. Uniformity Any two units of money must be uniform, that is, the same, in terms of what they will buy. Limited Supply/Scarcity Money must be available only in limited quantities. Acceptability Everyone must be able to exchange the money for goods and services.

The Fed is diligent about keeping our currency fit since a torn or mangled bill can't go through an ATM, a vending machine, or another electronic reader. As a result, the average life of each bill is surprisingly short: $1 bills: 3.7 years $5 bills: 3.4 years $10 bills: 3.4 years $20 bills: 5.1 years $50 bills: 12.6 years $100 bills: 8.9 years Overall the average life for all bills is about five years. In 2010, 2.6 billion $1 bills were destroyed- shredded and recycled.

The Sources of Money’s Value Commodity Money Commodity money consists of objects that have value in themselves. Example: Gold or silver coins. Has intrinsic valu.e Representative Money Representative money has value because the holder can exchange it for something else of value. Example: Dollar bills which can be exchanged at a bank for gold or silver Fiat Money Fiat money, also called “legal tender,” has value because the government decreed that is an acceptable means to pay debts. Example: US currency- has no intrinsic value (just a piece of paper), but is accepted by all.

Money Facts: What backs the dollar and makes it valuable? Gold? NO! The dollar is legal tender because the government says it’s money and people willingly accept it. The Dollar is backed by FAITH. This is referred to as an inconvertible fiat standard.

DO NOW!-4/27/15 What are the 6 characteristics of money? (Characteristics that currency should have- For example: Durability)

The Six Characteristics of Money The coins and paper bills used as money in a society are called currency. A currency must meet the following characteristics: Durability Objects used as money must withstand physical wear and tear. Portability People need to be able to take money with them as they go about their business. Divisibility To be useful, money must be easily divided into smaller denominations, or units of value. Uniformity Any two units of money must be uniform, that is, the same, in terms of what they will buy. Limited Supply Money must be available only in limited quantities. Acceptability Everyone must be able to exchange the money for goods and services.

The Supply of Money In the United States, the Federal Reserve System is the sole issuer of currency. This means the Fed has monopoly control over the money supply. There are two important measures of the Money Supply today. M1 M2

M1 M1 serves primarily as a medium of exchange. It includes: Currency and Coin Demand Deposits

Certificates of Deposit M2 M2 serves as a store of value. It includes: The M1 Time Deposits Money Market Mutual Funds Overnight Eurodollars Certificates of Deposit Savings Accounts

The measure becomes smaller M1 & M2 As we go from M1 to M2 The measure becomes larger Money becomes less liquid As we go from M2 to M1 The measure becomes smaller Money becomes more liquid

Time Value of Money Is a dollar today worth more than a dollar tomorrow? YES Why? Opportunity cost & Inflation This is the reason for charging and paying interest ???

Velocity of Money The velocity of money (also called velocity of circulation) is the average frequency with which a unit of money is spent in a specific period of time. Velocity has to do with the amount of economic activity associated with a given money supply.

Velocity example If, for example, in a very small economy, a farmer and a mechanic, with just $50 between them, buy goods and services from each other in just three transactions over the course of a year Farmer spends $50 on tractor repair from mechanic. Mechanic buys $40 of corn from farmer. Mechanic spends $10 on barn cats from farmer. then $100 changed hands in course of a year, even though there is only $50 in this little economy. That $100 level is possible because each dollar was spent an average of twice a year, which is to say that the velocity was 2 / yr.

DO NOW! 1. What happens to the purchasing power of money over time and why? 2. What can you do to protect your money from this?

Financial Advising Brochure Examples

No more regular assignments for the Semester Final project is the last assignment due by Thursday, December 22nd- 12:30pm All other assignments must be completed by 12:30pm Thursday, December 22nd. It is YOUR job to check what you are missing on Focus, and collect the work. If there are no assignment papers left in the make-up file, them you must get them from ItsLearning- Economics- 3rd 6 Weeks Assignments folder

Economics Final Project: Personal Finance Your final project/presentation should cover three major economic goals that you feel are important enough to deserve planning in order to achieve. The economic goal may be something that you are currently working on right now, such as buying a car, financing college, etc…, or something that is years in the future. The project should detail not just your goal, but more importantly how you plan to go about achieving each of your goals/ Remember; this is economics, so focus on that part of your planning. You can start with “I want to own a big home in California” and then continue to explain how you hope to achieve that goal. You should already have information regarding the cost of some things from previous assignments. You may need to do a little more research on one or more of your big economic goals. Detailing what your goal will cost is a potential place to begin on each economic goal. A big part of grading for the assignment will be based on how well you have put together a realistic plan to reach your goals, so put some thought into the work. You may use a poster, PowerPoint, flip chart, or a detailed essay. If you are not specific on how you plan to achieve your goals, your work will be returned to you for completion. If you have another idea for how to present your information, talk to me. The project must also include ideas for two supporting graphic elements. This might be a timeline of goals, a chart showing various major elements of your economic goals, a budget, investment plans, or other objects that help with your economic planning. (The key thing is that you must create the graphic, anything simply cut-and –paste will not be considered as your work.)