1. CHECKING, SAVINGS, AND INVESTING MANAGING YOUR MONEY

2. A budget is... A sum of money to be used for a particular purpose. It is a plan for earning, spending and saving money. To make a budget, you need to know three (3) things: Your Income Your Expenses How much to Save

3. INCOME Income is the money you earn. It can be from your job (paycheck) or other sources. (ie interest from investments, gifts, extra services) Decoding your paycheck Gross Pay- The entire amount of your income or paycheck before any deductions like taxes or insurance payments are subtracted. Net Pay- The amount of your income or paycheck after any deductions like taxes or insurance payments are subtracted. This is your take-home pay. Income Tax- Money that wage earners pay the government to run the country. The amount of the tax depends upon how much you earn. Social Security- money you pay into a fund to receive at retirement or if you are injured and can no longer work.

4. EXPENSES Fixed Expenses- payments that must be made in a fixed time period -every week or month or year Rent or Mortgage Car payments Insurance Credit Card Payments Flexible Expenses - payments that vary in time and amount Food Entertainment-movies, music, books Clothing

5. TYPES OF ACCOUNTS Banks basically offer two types of accounts: A Savings Account is... A bank account where money is stored and returns a low interest rate. A Checking Account is... A bank account where the depositor can write checks. It is for the money you use to pay everyday expenses.

6. CHECKING ACCOUNTS Debit Card is... Like a credit card, but it takes money directly from your bank account. Checks -issued by the bank. They represent a pledge to pay a certain amount of money to a person or business. Cleared Check is a check that has been honored and processed. Bad Check is a check that is dishonored because of insufficient funds. Overdraft occurs when withdrawals have gone over the available amount. Overdraft Fee is a fee for over spending. How to Write a Check

7. TRACKING YOUR ACCOUNTS Check Register is a record book used to keep track of all transactions. When do you record a check (debit) in your check register? When checks are written. When Automated Teller Machine (ATM) withdrawals are made. When do you record a deposit (credit) in your check register? When you receive a paycheck. When you receive money from another source. Sample Register Statement is a document published by your bank that details all transactions for the month.

8. SAVINGS ACCOUNTS Interest -The amount paid by a borrower to a lender for the privilege of borrowing the money. Savings Accounts- Most common way to save money. Offered by most banks. Pays the lowest interest rate, but offers the most flexibility. Certificates of Deposit- You agree to deposit a specific amount of money for a fixed amount of time, usually 60, 90, or 120 days. Pays higher interest, but you can’t use your money until the time period is over. Money Market Account- Pays higher interest than a savings account but less than a CD, however you can withdraw money without penalty. Requires maintaining a high balance.

9. MAKE SAVINGS A FIXED EXPENSE Emergency Expense -unexpected or unplanned for expense. (i.e car repairs, illness, broken appliance) Savings Plan -Regular payments into an interest bearing account. Acts as a “shock absorber” when emergencies happen. Can also be used to pay for luxuries. You should put 5% to 10% of your income into a savings account.

10. CREDIT CARDS A credit card is… A card that lets you buy goods and services based on a promise to pay later. A card that charges monthly interest if the balance is not paid in full. When you use a credit card to purchase things, you are taking a loan from the bank for that amount of money! The bank will charge you interest for this loan. In this case interest is bad because you are paying the bank instead of the bank paying you!

11. DEVELOP THE SAVINGS HABIT Saving can sometimes seem hard to do. Many people live in the “now” they want what they want and they want it now! Before you make a purchase, you should ask yourself these questions. Do I have enough money saved? Is this a need or a want? Need- Something you must have for survival Want-Something that is nice, but not necessary

12. Remember- Money is a resource Use it Wisely!!!!

13. ASSIGNMENT Go to Google Classroom –Finance Assignment Complete Sections on Writing a Check and Practicing Filling out a Check Register. Click on the blue writing to follow the links Read then answer the questions by typing directly on the document You will turn in completed questions through Google Classroom.