using money wisely and effectively to meet your obligations and priorities
TRANSCRIPT
Using money wisely and effectively to meet your obligations and priorities
Income – Money that is earned through work,
gifts and other sources. Paycheck – The paper statement that supplies the
necessary information about your earnings and gives you the ability to exchange for cash.
Salary – The amount of money a person earns
per year. Rate of pay/Wage – The amount of money a person earns
per hour.
Gross income – Amount of money earned before any
deductions are subtracted. Deduction – Money taken from gross pay to cover
specific obligations. Net income – The money you have left over after
deductions are taken – this is what you have available to spend or save.
PAYROLL CLERK: Organizing, printing, labeling and
distributing every student’s paycheck
Money management – Using money wisely and effectively to meet
your obligations and priorities
Bank/Credit union – A federally insured institution that will keep
your money safe - many services are provided.
Cash-on-hand – This is the most accessible, easily
spendable way to handle your money.
Savings account – A safe investment that will increase in value at a small rate (class – 10%) Checking account – Nearly as flexible as cash (class – no interest)
Transaction – An exchange between the customer and the
bank or store
Deposit – Putting money into a bank Withdrawal – Taking money out of a bank account Transfer – Moving money from one place to another Endorse – Signing your name on the back of a check
that you want to cash
Balance – How much money is left in a bank account Statement – A notice that shows a record of a person’s
bank account Bounced/cancelled – When you don’t have enough money in your
account to pay for a check you have written
Investment – Putting money into an account with the
intention of increasing its value Profit – Making more money than when you started Loss – Making less money than when you started
Interest – Money added to your accounts as a bonus
for keeping it there Stock – Shares of ownership in a company Bonds – A government investment – shares of the
government
Mutual fund – An investment with risk involved; it may
increase or decrease in value (class – roll the dice for interest rate)
Certificate of deposit – CD – A minimum investment must be made
(usually $500.-$1,000.) but the interest rate is higher. You may not have access to the money for a length of time (3 mos, 6 mos, 1 yr)
Banker – Will keep records of each student’s bank
account, cash paychecks, make change, process deposits, transfers and withdrawals
Investment Broker – Will record all investment, keep records of
all transactions, collect and distribute money, calculate interest
Social security/FICA - Federal program that provides income to
those people unable to work - (stands for Federal Insurance Contributions Act)
Dependents – The people you support with your salary Taxes – Money obligated to the government – state,
federal, or local
Federal tax – Paid to the US government (class – 30% of
gross pay) State tax – Paid to the state government (class – 10%) Local tax – Paid to local government School tax – Paid to local school district
Bill – Money that is owed, a payment for goods,
privileges or services Late fee/charge – Extra penalty money owed when bills are
not paid on time Debt – To be under obligation to repay money to
someone
Loan – Money lent for temporary use – usually a large
amount Collateral – Giving something to secure your loan – a type of
“insurance” to the person who loans the money
Credit – When you buy something now and pay for it later Credit history – Reveals if you have paid your debts on time or not
Minimum payment – A percentage of the total balance you must
pay each month A.P.R. –Annual percentage rate – The cost of your credit as a yearly rate Fixed rate – An interest rate that is preset and does not
change Variable rate – An interest rate that can change
periodically
Insurance – Financial protection against unfortunate events
Tax Collector – Calculates federal & state taxes, collects
money and records all transactions Bill Collector – Collects all monies from students for bills,
incentives and purchases; records & gives receipt for transactions
Authority – Watches for infractions, writes bill to
offender & follows through on payment of each bill
Insurance Agent – Provides safety insurance every payday;
keeps records of all transactions Capitalist – Sells items in class, decides market value of
items, writes out receipts for each item sold; coordinates lottery, game show or other activities