Citizens Citizens and and

The EconomyThe Economy

How do we contribute to the How do we contribute to the economic common good??economic common good??

Be productive!!!Be productive!!!

What does this mean???What does this mean???

Your Economic Your Economic ResponsibilitiesResponsibilities

Work & Pay TaxesWork & Pay Taxes Spend your Money WiselySpend your Money Wisely Save a portion of your income Save a portion of your income

Needs Vs. WantsNeeds Vs. Wants

Needs:Needs:

Anything that is necessary Anything that is necessary for your survival.for your survival.

Examples?Examples?

Shelter and FoodShelter and Food

Wants:Wants:

Anything that makes your Anything that makes your life more comfortable; life more comfortable; however, you can easily however, you can easily live without.live without.

Examples?Examples?

IPOD, Cell Phone, and IPOD, Cell Phone, and JewelryJewelry

Parts of a BudgetParts of a Budget

Spending & SavingsSpending & Savings A combination of one’s fixed and flexible expenses and A combination of one’s fixed and flexible expenses and

remaining disposable incomeremaining disposable incomeInvestment:Investment: Anything that a person puts money into with the hopes Anything that a person puts money into with the hopes

that the item increases in value over time.that the item increases in value over time.RetirementRetirement Providing for yourself when you are no longer working.Providing for yourself when you are no longer working.EstateEstate Planning for the smooth transition of property to Planning for the smooth transition of property to

designated beneficiaries after one’s death.designated beneficiaries after one’s death.

Spending and SavingsSpending and Savings

Fixed ExpensesFixed ExpensesPayment will stay the Payment will stay the same every monthsame every month

Ex:Ex: RentRent Mortgage PaymentMortgage Payment Car PaymentCar Payment Insurance PaymentInsurance Payment

Flexible ExpensesFlexible Expenses

Payments will vary in Payments will vary in amount from month to amount from month to monthmonth

Ex:Ex: Electric & Heating BillElectric & Heating Bill Gas for your CarGas for your Car GroceriesGroceries Personal EntertainmentPersonal Entertainment

Why do people Why do people save money?save money?

1.1. Major PurchasesMajor Purchases EX: buying a EX: buying a carcar

2.2. Large annual or semiannual expenses…Large annual or semiannual expenses…paying your real estate taxespaying your real estate taxes

3.3. Unexpected Expenses…home repairsUnexpected Expenses…home repairs4.4. Long Term Expenses…pay for your Long Term Expenses…pay for your

retirementretirement5.5. Amass wealthAmass wealth

Benefits of Saving MoneyBenefits of Saving Money

Security:Security: Money in a bank can not be lost…Money in a bank can not be lost…

FDIC insured!FDIC insured!

Interest:Interest: A payment that financial institutions A payment that financial institutions

make to you in exchange for the use make to you in exchange for the use of your money while it is deposited.of your money while it is deposited.