Money Management Teen Living 10.01/.03

1.Don’t spend it 2.Make saving a habit Learn to Save $$

 Satisfy needs first, then savings, then wants

 A plan for spending and saving Budget

 Hourly: rate ($7.95) x number of hours worked  Salary: **same amount of money each month regardless of hours worked  Allowance: small amount given by parental units  Gross income: amount on your paycheck before deductions  Deductions: **items subtracted from paycheck such as taxes, FICA (social security), benefits (health), savings (401K retirement)  Net: ** amount left over to spend after deductions Income: **the money you earn

 Keep track of by writing down  Keep receipts** written or printed record of purchases Expenses: **things you spend your money on

 Know your goal (birthday gift, car, college)  Cover fixed expenses first (rent, phone, car)  Prioritize flexible expenses  Food ** all that is consumed by the family  Clothing – how can you save money?  Savings  Entertainment  Where can you save by not spending? Make a Plan

 Keep with it  Evaluate for effectiveness  Revise if necessary Stick with your Plan

 Complete the paycheck stub exercise Now...

 Holds your money  Easy access  Protects your money Checking Account

 Write down all transactions (deposit, withdrawal, debit, purchases) **right when you do them  Record check amounts in the register**  Register: booklet for recording all transactions by date, amount, where  Making deposits  **endorse any checks: sign the back  List all checks and cash  Make deposit in person or ATM (drive thru or inside) Use a debit card instead of a check

1.Receive statement in the mail 2.Check off all your transactions that appear on statement and on your register 3.Subtract any checks not on statement 4.Add back any outstanding checks not cleared on statement Outstanding check: **you wrote it but it hasn’t showed up and cleared at the bank **Reconciling Accounts

 Do it every month when the statement comes  **when complete, your check register must match your bank statement Reconciling, con’t

 Savings: **keeps money safe and earns interest  Interest: payment in exchange for the bank using your money (it lends it to others)  Rate x principle(1% interest = x.01)  What are the **fees? Minimums? For the account Banking

 Allows you to **take out money whenever you want it – daily limits  Take your time so you **don’t make mistakes  Be safe ATM

 Use the internet or your textbook and find a definition for each of these  Savings Bonds  Stocks  Money Market Accounts  Mutual Funds  Certificate of Deposit  Money Order: **used like a check; made out to a specific person for a specific amount Investing Options

 Writing a check – read the steps  Writing and endorsing checks: 1.Write today’s date on front of check 2.Pay to: NIHS Yearbook 3.$ Spell out the words: Eighty-Five and 45/100 5.Sign your name – bottom right  Back of Check 1.Sign your name on left check 2.Right check: line 1 pay to the order of; line 2 Corrine Rupp; line 3 sign your name Read and do your Packet

 Read first page  Page 22/B – do the exercise – follow directions and fill in the blanks  Fill out all six (6) checks  Complete exercise 22/C – tracking your transactions  Turn all your work into the teacher Tracking Your Transactions