S T U D E N T C R E AT E D R E V I E W

MANAGING MONEY

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

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

Debit Cards-• Money is taken off without you writing a check• Keep close records• Account can easily be opened by someone else

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

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 payedSome thing you might buy with credit: • Houses• Cars

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

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

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-money

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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

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

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