1 / 27

Intro to Business

Chapter 28. Intro to Business. Planning For The Future. What does money mean to you?. What are values?. Values are a belief of what is desirable, worthwhile, and important to us What do you value?

delta
Télécharger la présentation

Intro to Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 28 Intro to Business

  2. Planning For The Future • What does money mean to you?

  3. What are values? • Values are a belief of what is desirable, worthwhile, and important to us What do you value? • List what you would save if you could put only three items that are meaningful to you in a treasure chest. Who influences values? • Values can be influenced by family, friends, teachers, religious affiliations, work/career, media, and law…

  4. What do you value? • People have different values which guide their decisions. • These decisions may have an affect on their lifestyle and financial situation. • For example, if a person values financial security, he/she may focus on saving, investing, and/or finding a good job

  5. What type of lifestyle do you dream about?

  6. Setting Goals • To reach your desired lifestyle you will need to do some planning and goal setting • setting goals allows you to focus on items that you identify as important. • Goals can be… • Short-termgoals can be achieved in less than one year. • Long-term goals can be reached in more than one year.

  7. Why are goals important: • Having goals allows us to become better than we are today. • Successful people have goals • Goals motivate and inspire people • Goals guide people as they live their lives • Without goals we have nothing to work towards

  8. SMART GOALS • Specific • Measurable • Attainable • Realistic • Timely

  9. To Achieve Financial Goals • We need to manage our money • MONEY MANAGEMENT • To process of getting the most from your $$$ • BUDGETING • A Plan of how I hope to spend my money • Steps in Planning a Budget • Set Financial Goals • Estimate Income • Budget for Fixed Expenses • Budget for Variable Expenses • Record what you Spend • Review Spending and Savings Patterns

  10. 2. Estimate Income: • Any money your receive (on a regular basis) • Investments, Salary, ??? • GROSS INCOME (salary) • Earned In come • Net Income • Income less (-) deductions • Examples: Taxes, Insurance, 401-K, Social Security

  11. 3. Budget for Fixed Expenses • Fixed Expenses • Rent, Car, Loans 4. Budget for Variable Expenses • Variable Expenses • Cable, Phone, Groceries, Entertainment???

  12. 6. Record what you Spend • Write down what you spend during the month • Check what you spend against your budget • A difference between budgeted amount and actual is called a budget variance • Surplus – • Deficit -

  13. 7. Review Spending and Saving Patterns • Saving… • Big Purchases • Big Ticket Items • Retirement • Budgeting is a continual process…

  14. Average Household Expenses

  15. Income & Taxes

  16. Income • Income = the actual amount of money you earn or receive during a given period • An employee may be paid: • Weekly • Biweekly=every two weeks • Twice a month; 15 and 30th • Once a month • Commission

  17. Income • Wage/Rate=paid hourly • US minimum wage is $7.25 • IL minimum wage is $8.25 per hour • Salary - receiving the same gross pay each pay period • Example: $50,000 per year

  18. Gross Pay • Gross Pay is the total amount you earned for a specific time • Number of hours worked * wage (rate per hour) = gross pay • Example: • 30 hours worked * $8 per hour=$240 gross pay

  19. Net Pay Estimate about: $43,400 • Net Pay (take home pay) • Gross pay-deductions=net pay • In US net pay = about 30 % less than gross pay • So you make $62,000 a year how much are you really making???

  20. W - 4 • An employer gets the federal income tax information when an employee gets hired and must fill out a • W-4 Form= lists number of withholding allowances you want • You will claim “0”or “1”on your forms • The more you claim the less the government takes out • Example you have 5 children you need more money to take care of them

  21. Deductions • Gross pay is reduced by • Deductions = amounts that are taken out of your pay before you receive your pay check • MANDATORY DEDUCTIONS • Federal Income Tax • State Tax % of gross income • IL is 5 % • Some dates do not have state tax (Washington, Florida, Nevada, Alaska etc…) • FICA (Federal Insurance Contribution Act) • Social Security 4.2% • Medicare 1.45%

  22. Other Deductions from your paycheck • Pension Retirement • 401 K • 403 B • Health Insurance • Union Dues • Savings • Donations; charity

  23. W-2 Form • By January 31stan employee must receive (from each employer) • W-2 Form= summary of your total earnings and withholdings from your job • NEED THIS TO DO YOUR TAXES!!! • Lists: • Total earnings from all sources • Federal income tax withheld • Social security tax withheld • Medicare tax withheld

  24. 1040 EZ • By April 15 each person who has worked must file an income tax return: • 1040 EZ (FORM TO DO YOUR TAXES) • Single or married • No dependents • Taxable income of less than $100,000 • Earned no more than $1500 in interest

More Related