1. What Can You Do With Money?
Family Economics & Financial Education
What Can You Do With Money?
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

2. What Can People Do With Money?
Spend it
Save it
Invest it
Donate it
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

3. What Can People Do With Money?
People usually spend money before they save, invest, or donate it
For example:
The average adolescent spends about $264 per month
How much of this are they saving?
The amount saved is most likely much less than the amount spent
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

4. Goals
What is a goal?
Something a person intends to acquire, achieve, do, reach, or accomplish
Goals help people focus on items that are most important
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5. Types of Goals There are 3 main types of goals Short-term goals
Can be achieved in less than one year
Long-term goals
Can be achieved in a time period of more than one year
Financial goals
Specific objectives to be accomplished through financial planning
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

6. Why are goals important?
Short-term and long-term goals are a necessary component of an effective financial plan
In order to reach short-term and long-term saving goals, individuals may need to change their spending habits
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

7. Savings What is savings? Saving should be viewed as an expense
A portion of income that is not spent to purchase necessary or wanted items
Saving should be viewed as an expense
Use the motto “pay yourself first”
Pay yourself first- set aside a portion of money for saving each time a person is paid before using any of the money for spending
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

8. Why should people save? For unexpected events and emergencies
Without savings, unexpected events may become huge financial problems
Examples: the car breaking down or having a medical emergency
To purchase expensive items
Examples: a new car or a family vacation
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

9. How should people save?
Should use an account with a financial institution
A financial institution is a business that holds and protects money for people.
Examples of accounts…
Savings Account
Money Market Deposit Account
Certificate of Deposit (CD)
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

10. Savings Account An account with a financial institution
Keeps money safe until the owner needs it
Opening a savings account
Deposit, or put money into the account
The financial institution will pay interest, or additional money, which is calculated by taking a percent of the total amount of money deposited in the account
Money can be withdrawn, or taken out, at any time
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

11. Money Market Deposit Account
Another type of account with a financial institution
Pays a higher interest rate than a savings account
Money can be withdrawn from the account a limited number of times every month
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

12. Certificate of Deposit
An account that pays interest on a lump sum of money
Money is required to stay in a CD for a specific period of time
The money and interest earned can be withdrawn at the end of the time period
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

13. Summary What can people do with money? What is a goal?
Spend, save, invest, or donate
What is a goal?
Something a person intends to acquire, achieve, do, reach, or accomplish
What are the three main types of goals?
Short-term, long-term, and financial
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

14. Summary Continued Why are goals important? What is savings?
They are a necessary component of an effective financial plan
What is savings?
A portion of income that is not spent to purchase necessary or wanted items
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

15. Summary Continued Why should you save? How can you save money?
For emergencies, unexpected events, or to purchase expensive items
How can you save money?
Savings Account, Money Market Deposit Account, and Certificate of Deposit
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

16. Matching Game
Divide into groups of three and designate one person as the referee
The referee should shuffle the matching game cards and place them answer side down into rows
Try to match the term with the definition by flipping over two cards at a time
Ask the referee if the match is correct
If so, keep the cards and take another turn!
If not, turn the cards back over and wait for the next turn.
Good luck!
© Family Economics & Financial Education – March 2006 – Get Ready to Take Charge of Your Finances – What Can You Do With Money
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona