Managing Money

1. Managing Money Student created review

2. Spending Styles Present-Oriented Future-Oriented • Buying things now instead of waiting • Don’t plan and save as much • Self centered when it comes to spending • Worry less • Usually go into debt • Have goals • Prepared when something comes up • Don’t like to chip in • Don’t like spending • More thoughtful about purchases • Takes them longer to buy something

3. Everyday Expenses • Checking Account- • Deposit your money in a bank • Use it once ready • Multiple people can access the account • Sometimes people write checks for more money then there is on the account • If you write a check for more money then you have on the account you have to pay a fine • Atm’s- • Usually open 24 hours • You can take cash off from your account or add money to your account(deposit) • You need a PIN number to do this • The money that you take off is taken off your account right away • Debit Cards- • Money is taken off without you writing a check • Keep close records • Account can easily be opened by someone else

4. Types Of Credit What is Credit? • loan or an IOU • You are using the money and paying them back later • With credit comes interest witch is money that gets added on to what you have payed Some thing you might buy with credit: • Houses • Cars

5. Vocab • Financial plan: directs money going in/coming out in order to have the ability to use it how you want to • Fixed expenses: monthly expenses (typically) • Flexible expenses: adjustable, not always needed expenses • Resourceful: getting what you want by using the things around you

6. Making a financial plan • Think about long-term and short-term goals • STEPS: • Estimate Income:know what you will be taking home, not your hourly wage, remember taxes • Record Expenses: write down costs of EVERYTHING • Analyze Spending: look at what you spend, what can you cut back on? • Plan for Spending and Saving: decide what you want to do with your money • Evaluate your plan: check up on your plan, adjust if something needs adjusting

7. Family financial plan • Make a plan for the family • Home • Food • Clothing • Etc. • FINANCIAL DECISIONS: • Parents have final ‘say’ • “Life isn’t fair.” • PLANNING FOR FAMILY DEVELOPMENT: • Families don’t spend money the same ways • When parents have teenagers, financial pressure is on • Retirement will bring the biggest feeling of security http://www.better.tv/view/your-money2-your-money-your-money--managing-money-with-friends

8. Installment Buying • Large items can’t be bought on a credit card • Examples: cars, furniture, appliances can be bought with an installment plan • Installment buying: make a partial down payment which is called a down payment • Next step is signing a contract to pay the balance • Be careful and be sure to look out for the (APR) annual percentage rate • Always be sure to read the contract before signing so you never miss anything

9. Loans • Loan: lending something to someone with an agreement of paying it back • Where to get loans: • Banks • Credit unions • The information supplied when you borrow money is controlled by the federal laws control • Helps you compare costs and terms • Steps for applying for credit • Fill out a credit application • Company does a credit check • Company decides whether to give it to you

10. Saving Money • Saving money should be a part of everyone's plan • Remember: **Benefits out weigh the costs** • When people get sick, are unemployed, get in a accident they rely on savings. • Mainly all banks allow unlimited access to the account • You may want to consider having an emergency fund incase something happens