Personal Finance
Transcript of Personal Finance
![Page 1: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/1.jpg)
Created by Camille Krum
Help! I’m out of money!
Personal FinancePersonal Finance
![Page 2: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/2.jpg)
Activity: How Much Do They Make?
![Page 3: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/3.jpg)
Spending CreditEarning
Careers
Income Credit Cards
Expenses
Variable
Fixed Differential
![Page 4: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/4.jpg)
Earning
Careers
![Page 5: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/5.jpg)
Learn and Earn
High School Degree
Associate Degree
Bachelor Degree
Masters Degree
Doctorate Degree
$18,571 $26,536 $40,387 $48,872 $60,729
How Education Pays: For the Rest of Your Life
![Page 6: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/6.jpg)
How much is your time worth?
Salary Year Salary Week
Benefits=40%
Total Salary
Total Week Value Per Hour
Value Per Minute
$15,000 $288.46 $115.38 $403.84 $10.10 $0.17
$20,000 $384.62 $153.85 $538.47 $13.46 $0.22
$25,500 $480.77 $192.31 $673.08 $16.83 $0.28
$30,000 $576.92 $230.77 $807.69 $20.19 $0.34
$40,000 $769.23 $307.69 $1,076.92 $26.92 $0.45
$50,000 $961.54 $384.62 $1,346.16 $33.65 $0.56
$60,000 $1,153.85 $461.54 $1615.39 $40.38 $0.67
$70,000 $1,346.15 $538.46 $1,884.61 $47.12 $0.79
$80,000 $1,538.46 $1,884.61 $2,153.84 $53.85 $0.90
$90,000 $1,730.77 $692.31 $2,423.08 $60.58 $1.01
![Page 7: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/7.jpg)
•The average earnings of college graduates in 1996 were 55% higher than those of high school graduates.
•The average income for a family headed by a high school graduate declined 4.5% between 1973 and 1996.
•During that same time (1973-1996), the income of families headed by college graduates grew 13.8%.
•During that same time, the earnings of families headed by a parent who went to school beyond a college degree rose 38.8%.
Earnings
![Page 8: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/8.jpg)
Activity
Do you get tired of going to class every day? Complete the assignment and see what the value of a day’s education is over a 40-year work life. How much is attending each class really worth?
How Much is Class Attendance Worth?
![Page 9: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/9.jpg)
Millionaire Game
Hold up a true or false card. Include a Millionaire Card if you are sure your are correct.
1. Most Millionaires are college graduates.
2. Most millionaires work fewer than 40 hours a week.
3. More than half of all millionaires never received money from a trust fund or estate.
![Page 10: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/10.jpg)
Millionaire Game
4. More millionaires have American Express Gold Cards than Sears cards.
5. More millionaires drive Fords than Cadillac's.
6. Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech.
7. Most millionaires work for big Fortune 500 companies.
8. Many poor people become millionaires by winning the lottery.
![Page 11: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/11.jpg)
Millionaire Game9. College graduates earn about 65 perce
nt more than high school graduates.
10. If an average 18-year-old high school graduate spends as much as an average high school dropout until both are 67 years old, but the high school graduate invests the difference in his or her earnings at eight percent annual interest, the high school graduate would have $5,500,000.
![Page 12: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/12.jpg)
Millionaire Game
11. Day traders usually beat the stock market and many of them become millionaires.
12. If you want to be a millionaire, avoid the risk stock market.
13. At age 18, you decide not to by fountain drinks and save $1.50 a day. You invest the $1.50 a day at eight percent annual interest until you are 67. At age 67, your savings from not drinking soda are almost $300,000.
![Page 13: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/13.jpg)
Millionaire Game
14. If You save $2,000 a year from age 22 to age 65 at eight percent annual interest, your savings will be over $700,000 at age 65.
15.Single people are more often millionaires than married people.
![Page 14: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/14.jpg)
Spending
Income
Expenses
Variable
Fixed Differential
![Page 15: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/15.jpg)
Lifestyle costs
• Where you live• Clothes• Food• Transportation• Entertainment• Vacations• Other costs-car repairs
insurance
![Page 16: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/16.jpg)
Reality Check
Take the reality check quiz online to see what your life style choice requires you to earn per hour.
URL:http://www.jumpstart.org/madmoney/pgv_money_rc_main.html
![Page 17: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/17.jpg)
Activity: Cookie Monster• Select student to be employee
• Select student to be State Tax collector
• Select student to be Social Security Tax collector
• Select student to be Federal Tax collector
• Select student to be Health Insurance collector
• Select student to be Life Insurance collector
• Select student to be Donation collector
![Page 18: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/18.jpg)
REALITY BITES
Do you know where your money goes?
Identify your spending traps—
For the next two days keep a spending log. Record everything you spend.
![Page 19: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/19.jpg)
Financial GoalsShort term goal—pay for
immediate needs such as school, entertainment, clothes, etc.
Medium term goal—college education, cars, vacation.
Long term goal—retirement plans, change in career, travel
![Page 20: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/20.jpg)
Activity: Road Map to Spending
• Divide into groups of three. In two minutes list as many items as they can in the following categories:
• Fixed Expenses• Variable Expenses• Differential Expenses• Each student completes A Road
Map For Spending
![Page 21: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/21.jpg)
BudgetGo to computers in groups of three—if
not enough computers for all students.
Go to web site
and select career and salary from list.
Go to “Where does your salary go” and complete the activity.
![Page 22: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/22.jpg)
Credit
Credit Cards
![Page 23: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/23.jpg)
Three C’s of Credit
• Character—borrower’s willingness to pay you based on past history paying back loans
• Capability—ability to pay back money borrowed
• Collateral—property used to cover amount owed if fail to pay back money– Group students to do scenarios
![Page 24: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/24.jpg)
A Credit Check
Perhaps you have not developed a personal credit history, but you do have a personal education performance history that reflects similar behavior patterns. On a piece of paper, answer the following questions:
1. Number of times you have missed class this semester.
2. Number of times you have been tardy this semester.
3. How many times have you turned in late assignments this semester.
![Page 25: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/25.jpg)
4. How many times have you turned in incomplete assignments this semester?
5. How many times have you not turned in an assignment at all this semester?
6. How many times have you been asked by the teacher to change or improve your behavior in class this semester?
7. How many times have you forgotten to bring the required materials (pencil, disk, notebook, etc.) to class this semester?
![Page 26: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/26.jpg)
TOTAL (Add the numbers listed for 1-7 above)
How did you do?
4 or less…………… Credit Granted!!
5o-7 ……………… You are going to need a cosigner
8 or more………… CREDIT DENIED!
![Page 27: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/27.jpg)
FALSE
![Page 28: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/28.jpg)
TRUE
![Page 29: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/29.jpg)
FALSE
![Page 30: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/30.jpg)
TRUE
![Page 31: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/31.jpg)
FALSE
![Page 32: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/32.jpg)
TRUE
![Page 33: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/33.jpg)
FALSE
![Page 34: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/34.jpg)
TRUE
![Page 35: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/35.jpg)
FALSE
![Page 36: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/36.jpg)
TRUE
![Page 37: Personal Finance](https://reader035.fdocuments.net/reader035/viewer/2022062405/55837d9dd8b42ac8128b5114/html5/thumbnails/37.jpg)
Credits and Referencs
www.themint.org
www.jumpstartcoalition.org