Money Management

1
Money Management

• Using money wisely and effectively to meet your
  obligations and priorities

2
Managing Your Money

• 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.

3
Managing Your Money

• Salary
• The amount of money a person earns per year.
• Rate of pay/Wage
• The amount of money a person earns per hour.

4
Managing Your Money

• 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.

5
Managing Your Money

• PAYROLL CLERK
• Organizing, printing, labeling and distributing
  every students paycheck
• Money management
• Using money wisely and effectively to meet your
  obligations and priorities

6
Managing Your Money

• 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.

7
Managing 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

8
Managing Your Money

• 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

9
Managing Your Money

• Balance
• How much money is left in a bank account
• Statement
• A notice that shows a record of a persons bank
  account
• Bounced/cancelled
• When you dont have enough money in your account
  to pay for a check you have written

10
Managing Your Money

• 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

11
Managing Your Money

• 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

12
Managing Your Money

• 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)

13
Managing Your Money

• Banker
• Will keep records of each students 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

14
Managing Your Money

• 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

15
Managing Your Money

• 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

16
Managing Your Money

• 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

17
Managing Your Money

• 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

18
Managing Your Money

• 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

19
Managing Your Money

• 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

20
Managing Your Money

• 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