FINANCIAL LITERACY FOR THE 21ST CENTURY

Size: px
Start display at page:

Transcription

5 ROAD MAP TO YOUR FINANCIAL FUTURE A budget is a financial road map used by individuals and companies as a guide for spending and saving so one does not spend more than they earn. Businesses and individuals must occasionally evaluate finances and adjust their budget to achieve financial goals. One of the first steps in creating a budget is to determine the amount of income expected. The second step is to determine the expected expenses. There are two types of expenses to consider: fixed and variable. Fixed expenses are necessary costs such as rent, transportation, insurance, and loan payments. The cost of fixed expenses does not change. A strategy called Pay Yourself First should be included as a fixed expense by setting aside at least 20% of your after-tax income for savings. The costs of variable expenses change from month to month and in many cases can be controlled. Variable expenses include utilities, groceries, recreation, and clothing. Expenses are totaled and then subtracted from your income to determine the difference. A positive number indicates that less is spent than is earned. This leaves a surplus for further investing. However, a negative number indicates that spending exceeds income. This is called a deficit. Skills: Problem Solving, Critical Thinking Bethany has been working full time for one year and frequently finds herself short of cash. Her total income is \$39,000; however, her income after taxes is \$2,500 per month. She has the following expenses: car payment, \$400 per month; auto insurance, \$3,000 per year; gas, \$50 per week; groceries, \$150 per week; clothing, \$50 per week; entertainment, \$25 per week; utilities, \$150 per month; rent, \$700 per month; and cell phone, \$30 per month. 1. Using the information provided, calculate Bethany s current monthly surplus or deficit. 2. Based on the Pay Yourself First principle, calculate the amount that Bethany should budget for savings. 3. Classify Bethany s expenses as either fixed or variable. 4. Assume that Bethany s hours and pay are reduced. Her after-tax income is now \$2,000 per month. Analyze the effect on her budget. Explain. F-4 Appendix F Financial Literacy for the 21st Century

8 WAGE GARNISHMENT Employers are required by law to withhold money, called deductions, from employees wages. Examples of deductions are federal income tax, social security taxes, and Medicare taxes. State and local income taxes may also be deducted. In addition, employees may ask their employers to deduct for insurance, savings, meals, union dues, uniforms, and charitable contributions. Some employers may be required by law to deduct wages from an employee for other reasons. Wage garnishment is a process that requires an employer to withhold a portion of an employee s paycheck to pay a court-ordered debt settlement. Common settlements include child support and damages awarded to an individual or business. Generally, the employer sends the garnished amount to the court. The court then pays the employee s creditor. All states permit wage garnishment, but limitations and types of wage garnishment vary by state. Someone considering a loan or credit purchase that they can t afford should think twice. Garnishment may add to financial hardship. Even worse, it will result in one s employer learning that he or she is not very responsible about money. Skills: Critical Thinking, Problem Solving, Communication & Collaboration, Information Literacy, Technology Literacy, Flexibility & Adaptability, Social & Cross-Cultural Skills 1. Explain in writing the purpose of wage garnishment. 2. Explain in writing why wage garnishment is not a voluntary deduction. 3. a. You will be placed in groups of four. Each group will research the types of wage garnishments that are permissible in a given state. Two students from the group will take on the role of the creditor (the person trying to obtain the unpaid debt). The other two students will take on the role of the employee who is having his wages garnished. Allow students time to debate and discuss the issue. b. At the conclusion, ask students to go to an online discussion board and discuss whether they believe that wages should be garnished. Financial Literacy for the 21st Century Appendix F F-7

9 WHAT IS A GOOD RISK? When lenders loan money, they want to make sure the borrower can pay back the loan. While each lender is unique, most will use some variation of the five C s of credit to help determine creditworthiness of individuals and businesses before approving a loan. 1. Character: What is the borrower s general attitude about payment obligations? What is their educational background? 2. Capacity: What is their ability to repay the loan? In addition to their previous payment history, their sources of income and current debt are also considered. 3. Capital: What is the borrower s net worth? Usually, the greater their capital is, the greater their ability to repay. 4. Collateral: What assets are available as payment if the loan is not paid? 5. Conditions: What are current economic conditions? Is their job secure? By determining creditworthiness, the lender may avoid the inability to collect on debt and reduce the amount of uncollectible accounts. Skills: Creativity & Innovation, Communication & Collaboration, Social & Cross-Cultural Skills 1. Assume you are a small business owner. Use desktop publishing software to create your own credit application. Include ten questions that would help you determine creditworthiness. 2. With a partner, create an informational poster to display in your school for other students to learn about the five C s of credit. 3. If you had to pick the top three C s of credit, which three do you think are better predictors of creditworthiness? Explain why. F-8 Appendix F Financial Literacy for the 21st Century

10 LEASE AGREEMENTS At least once a year, every consumer should review their personal financial statements to assess income and spending. Most financial experts recommend that one spend no more than 30% of their net pay on housing. This might be a good time to review your living arrangements. Home ownership comes with tax advantages, privacy, and fewer restrictions. Still, many find renting more appealing. The ability to relocate quickly and the benefit of maintenance-free living are advantages that many people prefer. However, luxuries like pools and clubhouses may cause many to rush into the lease agreement without properly considering their budget. This is not the time to sign quickly. A lease agreement is a legal, binding contract. The tenant is responsible for paying the rent to the property owner as agreed upon in the contract. The lease agreement will contain the name and address of the property, the rent amount, the date rent is due, lease start and end dates, type of notice needed for termination of lease, conditions upon which landlord can enter property, and signatures. It may also contain fees for pets and parking and noise restrictions. A security deposit is typically required. The amount is usually equivalent to one month s rent. This deposit is money paid in advance to the property owner in the event of damage. The renter receives the deposit back at the end of the lease if the property is left in good condition. Skills: Problem Solving, Creativity, Information Literacy, Communication & Collaboration 1. Read the following scenario and describe the recommended action. Be sure to explain why. Also, describe how Brandon could prevent a similar situation from occurring in the future. Brandon s lease just ended, and he moved to another apartment. Several months ago, Brandon allowed his friend Brady to stay with him. Now, Brandon s landlord will not return his \$500 security deposit because of damage caused by his friend s dog. The property owner claims that the \$500 will partially cover the cost of replacing the soiled carpet in three rooms. Brandon disagrees with the property owner. According to the lease, animals are allowed. Brandon believes that if someone should pay the charges, it should be Brady. 2. If you were the property owner, formulate a list of at least five rules and restrictions that you would place in your lease agreement using the guidelines above. 3. a. Research the Federal Fair Housing Act and Fair Housing Amendments to determine what types of housing discrimination is legal. b. With another student, discuss legal discrimination in housing and whether this is a fair practice. Financial Literacy for the 21st Century Appendix F F-9

11 ADDING UP THE BENEFITS Today, workers change jobs more frequently than ever before. In the past, it was common for an employee to stay with a company for an entire career spanning as much as 30 years. Frequent staff changes are costly to a company. Costs can affect the company s profit. In order to keep these costs under control, companies have become more employee-friendly. Benefits such as sick leave, paid vacation, and health insurance are becoming more flexible. These benefits may help a company keep employees longer. Free day care, wardrobe assistance, and on-site dog parks are examples of generous benefits that companies are offering to lure and keep employees. Some companies may even offer sabbaticals. A sabbatical gives the employee time off from the job to pursue personal interests or just rest. For the thirteenth year, software company SAS was named one of Fortune s 100 Best Companies to Work For. While some companies are reducing benefits, SAS chooses to be different. Founder and CEO, Jim Goodnight, welcomes benefits that might increase productivity or foster creativity. Offering on-site health care and free M&Ms has proven to be a winner. At a company where employees are encouraged to balance their work and personal life, SAS has one of industry s lowest turnover rates, and it is extremely profitable. Skills: Problem Solving, Technology Literacy, Communication & Collaboration, Creativity & Innovation 1. Brainstorm with a partner and list at least ten benefits that would make you a more loyal and productive employee. 2. Research the benefits offered by two companies in your community or closest city. Use the Internet to find information or interview people who work at the two companies. Draw a Venn diagram on a poster to compare and contrast your findings. 3. If you had the option of receiving 20% additional salary or an eight-week paid sabbatical, which would you choose and why? Explain your answer in one or two paragraphs. F-10 Appendix F Financial Literacy for the 21st Century

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account.

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account fee the amount charged by a financial institution for the

Your Money Matters! Financial Literacy Teacher Guide. Thanks to TD for helping us bring this resource to schools for free.

Your Money Matters! Financial Literacy Teacher Guide 2 Table of Contents: Introduction...3 Toronto Star epaper...4 Financial Awareness Inventory...5 SPENDING To Spend or Not to Spend Activity...6 I Need

Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

How do I get good credit?

Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,

A financial statement captures a person s overall wealth at a specific point in time. In this lesson, students will:

PROJECT 3 CASH FLOW AND BALANCE SHEETS INSTRUCTOR OVERVIEW Financial statements are compilations of personal financial data that describe an individual s current financial condition. Financial statements

A financial statement captures a person s overall wealth at a specific point in time. In this lesson, students will:

PROJECT 3 CASH FLOW AND BALANC E SHEETS INSTRUCTOR OVERVIEW Financial statements are compilations of personal financial data that describe an individual s current financial condition. Financial statements

Understanding Vehicle Financing

Understanding Vehicle Financing Understanding Vehicle Financing With prices averaging more than \$31,000 for a new vehicle and \$17,000 for a used model from a dealership, you might consider financing or

Hands on Banking Using Credit to Your Advantage Credit Reports, Credit Scores and Dealing with Debt The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the

National Standards for Personal Finance Education - Jump \$tart Correlation to Virtual Business - Personal Finance

National s for Personal Finance Education - Jump \$tart Correlation to Virtual Business - Personal Finance I. Financial Responsibility & Decision Making II. Income & Careers III. Planning & Money Management

Money Management Test - MoneyPower

Money Management Test - MoneyPower Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A person s debt ratio shows the relationship between debt and net worth.

GET CREDITWISE SM SM

GET CREDITWISE SM SM Table Of Contents October, 2006 Credit Matters 1 An introduction Establishing Credit 3 Begin building a solid financial base Using Credit Wisely 5 Narrowing your options Monitoring

Standard 6: The student will explain and evaluate the importance of planning for retirement.

TEACHER GUIDE 6.1 RETIREMENT PLANNING PAGE 1 Standard 6: The student will explain and evaluate the importance of planning for retirement. Planning for Your Retirement Priority Academic Student Skills Personal

Grades 9 12: Standard 1: Earning Income Benchmark Code Benchmark FoolProof Module/Activity. Benchmark Code Benchmark FoolProof Module/Activity

FL-V3-050316 PROPOSED NEXT GENERATION SUNSHINE STATE STANDARDS FOR SOCIAL STUDIES FINANCIAL LITERACY STRAND Grades 9 12: Standard 1: Earning Income SS.912.FL.1.1 Discuss that people choose jobs or careers

SAVINGS BASICS101 TM %*'9 [[[ EPXEREJGY SVK i

SAVINGS BASICS101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

SM4-1: Credit Card Application (version 1)

SM4-1: Credit Card Application (version 1) SM4-1: Credit Card Application (version 1) pg. 1 of 2 SM4-1: Credit Card Application (version 1) continued SM4-1: Credit Card Application (version 1) pg. 2 of

Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money

Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money All the materials and information included in this presentation is provided for educational and illustrative purposes

account statement a record of transactions in an account at a financial institution, usually provided each month

GLOSSARY GLOSSARY Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement

STUDENT MODULE 6.1 RETIREMENT PLANNING PAGE 1 Standard 6: The student will explain and evaluate the importance of planning for retirement. Planning for Your Retirement Lindzi and Lezli will attend retirement

Dr. Debra Sherrill Central Piedmont Community College

Dr. Debra Sherrill Central Piedmont Community College 2 Understand the types of installment loans. Identify ways to pay for college. Know how to purchase a car. 3 I. Introduction to Financial Terms II.

It s Your Paycheck! Glossary of Terms

Annual percentage rate The percentage cost of credit on an annual basis and the total cost of credit to the consumer. APR combines the interest paid over the life of the loan and all fees that are paid

Jump\$tart Coalition for Personal Financial Literacy. Goodheart-Willcox Foundations of Personal Finance 2014 by Sally Campbell and Robert Dansby

Jump\$tart Coalition for Personal Financial Literacy correlation of standards with Goodheart-Willcox Foundations of Personal Finance 2014 by Sally Campbell and Robert Dansby This chart correlates the performance

Familiarize yourself with laws that authorize and regulate vehicle dealership financing and leasing.

W ith prices averaging more than \$28,000 for a new vehicle and \$15,000 for a used vehicle, most consumers need financing or leasing to acquire a vehicle. In some cases, buyers use direct lending: they

Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

1 Tools for Financial Planning

PART 1 Tools for Financial Planning Chapter 2 Planning with Personal Financial Statements How to increase net cash flows in the near future How to increase net cash flows in the distant future Chapter

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow

1 Agenda 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 2. Revolving Credit A. Credit vs. Charge vs. Debit Cards B. Tips on Revolving Credit C. Home Equity Line Credit

Financial Planning. Introduction. Learning Objectives

Financial Planning Introduction Financial Planning Learning Objectives Lesson 1 Budgeting: How to Live on Your Own and Not Move Home in a Week Prepare a budget and determine disposable income. Identify

Lesson 13 Take Control of Debt: Become a Savvy Borrower

Lesson 13 Take Control of Debt: Become a Savvy Borrower Lesson Description After reviewing the difference between term loans and revolving credit, students analyze a fictitious character s use of credit

Personal Finance Unit 1 Chapter 3 2007 Glencoe/McGraw-Hill

0 Chapter 3 Money Management Strategy What You ll Learn Section 3.1 Discuss the relationship between opportunity costs and money management. Explain the benefits of keeping financial records and documents.

Buying a Car. A Car Means Convenience. Which Car is Right for You?

Buying a Car A Car Means Convenience It s Wednesday morning and you are sleeping soundly, dreaming about that Hawaiian vacation you d like to take. Suddenly you hear, instead of ocean waves, a loud buzz.

Synthesis of Financial Planning

P 7A R T Synthesis of Financial Planning 1. Tools for Financial Planning Budgeting (Chapter 2) Planned Savings (Chapter 3) Tax Planning (Chapter 4) 2. Managing Your Liquidity Bank Services (Chapter 5)

Renting vs. Owning a Home

Renting vs. Owning a Home Grade Level 10-12 Take Charge of Your Finances Materials provided by: Cathe Felz, Family and Consumer Sciences Educator, Three Forks High School, Three Forks, Montana Time to

It lets you pay for expenses you could not afford with cash, such as a college education, a new vehicle, furniture or a home.

USING CREDIT WISELY Credit Is An Important Financial Tool It lets you pay for expenses you could not afford with cash, such as a college education, a new vehicle, furniture or a home.

BUILDING YOUR MONEY PYRAMID: FINANCIAL PLANNING CFE 3218V

BUILDING YOUR MONEY PYRAMID: FINANCIAL PLANNING CFE 3218V OPEN CAPTIONED MERIDIAN EDUCATION CORP. 1994 Grade Levels: 10-13+ 14 minutes 1 Instructional Graphic Enclosed DESCRIPTION Most people will earn

GEORGIA PERFORMANCE STANDARDS Personal Finance Domain

GEORGIA PERFORMANCE STANDARDS Personal Finance Domain Page 1 of 8 GEORGIA PERFORMANCE STANDARDS Personal Finance Concepts SSEPF1 The student will apply rational decision making to personal spending and

Grade 9-12 Subject Economics & Personal Finance Fourth Nine Weeks Instruction Dates: April 14 June 15

Classroom policies and procedures Curriculum Focus: Virginia Credit Union Smart Start Education Curriculum https://www.vacu.org/education_resources/articles_tips/financial_education_for_kids_teens/resources_for_teachers/smart_start_curriculu

Personal Finance Scope and Sequence Unit: Financial Planning

Unit: Financial Planning Your perspective on money affects your behaviors regarding money. Maximizing utility with money requires planning What are my values/needs/wants? What is my perspective on money?

lesson nine cars and loans overheads

lesson nine cars and loans overheads the cost of owning and operating a motor vehicle ownership (fixed) costs: Depreciation (based on purchase price) Interest on loan (if buying on credit) Insurance Registration

This Report has been prepared for: John & June

Trader Makes \$4 Billion Wiz Kid Stock & Option Trader Makes \$4 Billion Trading Stock Options! Budget Reporting Software Discover Why BudgetPak Provides thebest Financial Reporting & Analysis Input Forms

Lesson Plans and Handouts from Gregg J. Zogby, Wellington C. Mepham High School

Lesson Plans and Handouts from Gregg J. Zogby, Wellington C. Mepham High School As presented in the W!SE Webinar for Financial Literacy on October 30, 2014 Table of Contents Types of Investments... Pages

Personal Finance Standards (Assignment Code #22210)

Personal Finance Standards (Assignment Code #22210) Rationale Statement: A citizen that lives within his or her income has more control over his or her life while expanding choices. Having the knowledge

Instructor Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Loan to Own Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum TABLE OF CONTENTS Page Module Overview 1 Purpose 1 Objectives 1 Time 1 Materials and Equipment Needed to Present

Financial Needs Analysis. Frank and Kathy Sample-Accumulator Hartford, Connecticut

Financial Needs Analysis Frank and Kathy Sample-Accumulator Hartford, Connecticut PREPARED BY: JANET LERNER, CFP - LERNER, STEVENSON & ASSOC. JUNE 8, 2012 Table of Contents Introduction... 4 Net Worth...

Personal Financial Literacy 2014

A Correlation of Table of Contents Standard 1: Income... 3 Standard 2: Money Management... 5 Standard 3: Spending & Credit... 7 Standard 4: Saving & Investing... 11 2 Course Description is a course designed

baj01275_app_433-454 02/09/2007 17:10PM Page 433 EPG_Team-C 105:JWQD032:bajapp: APPENDIX PERSONAL FINANCE WORKSHEETS

baj01275_app_433-454 02/09/2007 17:10PM Page 433 EPG_Team-C 105:JWQD032:bajapp: APPENDIX PERSONAL FINANCE WORKSHEETS baj01275_app_433-454 02/09/2007 17:10PM Page 434 EPG_Team-C 105:JWQD032:bajapp: 434

Renting vs. Owning a Home

1.9.3.L1 Note taking guide Renting vs. Owning a Home Total Points Earned 30 Total Points Possible Percentage Name Date Class Housing is the largest personal expenditure Approximately of a person s income

SCUDDER G. STEVENS, P.A. ATTORNEYS AT LAW A PROFESSIONAL ASSOCIATION 120 North Union Street P.O. Box 1156 Kennett Square, PA 19348 (610) 444-9840 (800) 294-4242 FAX (610) 444-9841 COMMON QUESTIONS ABOUT

THEME TWO: SIGNIFICANCE OF LEARNING, EARNING AND SPENDING ON PERSONAL FINANCIAL WELL-BEING

THEME TWO: SIGNIFICANCE OF LEARNING, EARNING AND SPENDING ON PERSONAL FINANCIAL WELL-BEING LESSON TITLE: Theme 2, Lesson 2: Credit: Friend or Foe? Lesson Description: This lesson will help students evaluate

Buy or Lease a Car published by AAA Fair Credit Foundation Buy or Lease a Car 1. What is Leasing?................................................................. 2 2. The Pros and Cons of Leasing and

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

usbank.com/student financialgenius.usbank.com Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest Loan Lessons The Low-Down on Loans, Interest

Hands on Banking Using Credit to Your Advantage The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the program anytime at www.handsonbanking.org & www.elfuturoentusmanos.org

Saving and Investing

Teacher's Guide \$ Lesson Ten Saving and Investing 01/11 saving and investing websites web sites for savings and investing The internet is probably the most extensive and dynamic source of information in

Loan. Application. Money Smarts for Kids. Money Skills for Life. Member FDIC. What to Know About Loans. Completing a Loan Application

Loan Application What to Know About Loans What do I need to know about applying for a loan? A loan is used to help you pay for something that you want to buy, like a car, college tuition, school trip or

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest The Low-Down on Loans, Interest and Keeping Your Head Above Water usbank.com/financialeducation

4. Profit. 5. Credit

What do you want and how are you going to get it? Personal Finance 1. Income 2. Budget 3. Investing 4. Profit 6. Spending 7. Savings 8. Assets 9. Expenses Income vs. Expenses 5. Credit 10.Liabilities SS8E5

PNC is a registered mark of The PNC Financial Services Group, Inc.( PNC ) 2013 The PNC Financial Services Group, Inc. All rights reserved.

The seminar and/or webinar and materials that you will view were prepared for general information purposes only by Baker Tilly and are not intended as legal, tax or accounting advice or as recommendations

1Planning Your Financial Future: It Begins Here

This sample chapter is for review purposes only. Copyright The Goodheart-Willcox Co., Inc. All rights reserved. 1Planning Your Financial Future: It Begins Here Terms Financial plan Financial goals Needs

Financial Literacy Quiz ~ ANSWERS Answers are in bold. 1. Which of the following statements best describes your right to check your credit history for accuracy? a. You can't see your credit record b. Your

Opening a Bank Account

Opening a Bank Account Section Objectives A basic component in establishing financial independence is Opening a Bank Account. Banking services are essential tools for managing personal finances and building

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Loan to Own Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum Table of Contents Page Lending Terms 1 Consumer Installment Loan Versus Rent-to-Own 2 Federal Trade Commission

FINAL EXAM. True or False. Multiple Choice. 21. False 22. False 23. False KEY. 10. False. 24. True. 31. True. 4. False. 26. True 27. True 28.

FINAL EXAM KEY True or False 1. False 2. True 3. True 4. False 5. False 6. False 7. True 8. True 9. False 10. False 11. False 12. False 13. False 14. True 15. True 16. False 17. True 18. False 19. True

MANAGING CREDIT101 TM %*'9 [[[ EPXEREJGY SVK i

MANAGING CREDIT101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

Presentation Slides. Lesson Nine. Cars and Loans 04/09

Presentation Slides \$ Lesson Nine Cars and Loans 04/09 costs of owning and operating a motor vehicle ownership (fixed) costs: Depreciation (based on purchase price) Interest on loan (if buying on credit)

Money Management THEME

THEME 3 Introduction Money Management Do you know people who handle money carelessly? Lots of seemingly smart people are clueless about where they stand financially. There is Beverly, a professional woman,

Table of Contents Checking In... 3 Pre-Test... 4 What Is Credit?... 6 Collateral... 6 Types of Loans... 7 Activity 1: Which Loan Is Best?... 8 The Cost of Credit... 9 Activity 2: Borrowing Money Responsibly...

OHIO TREASURER S FINANCIAL EDUCATION GLOSSARY OF TERMS

OHIO TREASURER S FINANCIAL EDUCATION GLOSSARY OF TERMS 401(k) An employer qualified retirement plan set up by a private company in which eligible employees may make salary-deferral (salary-reduction) contributions

Lesson 6: Inheritance and Investing What s Your Story?

Lesson 6: Inheritance and Investing What s Your Story? All the materials and information included in this presentation is provided for educational and illustrative purposes only and is presented with the

Indiana Financial Education http://doe.in.gov/octe/facs/indianafinlited-frontpage.html. Standards Final December 2008

Indiana Financial Education http://doe.in.gov/octe/facs/indianafinlited-frontpage.html Standards Final December 2008 By the end of 12th grade, every student should have achieved the Financial Literacy

Name: Grade 11 Essential Mathematics Unit 2: Page 1 of 16 Types of Accounts Banks offer several types of accounts for their customers. The following are the three most popular accounts used for everyday

Overcoming the Credit Barrier. Poor Credit Affects Your Ability to Plan

Overcoming the Credit Barrier: Clearing the Way to Your Financial Goals was written and designed for The National Foundation for Credit Counseling (NFCC ) and the Financial Planning Association (FPA )

PERSONAL FINANCE QUESTIONS

PERSONAL FINANCE QUESTIONS I. THINKING ECONOMICALLY 1. Good decision making involves all the following except: A. Determining your alternatives. B. Establishing your criteria/goals. C. Evaluating your

What to Do With a Windfall Episode # 511

What to Do With a Windfall Episode # 511 LESSON LEVEL Grades 6-8 Key topics Decision Making Investing Personal Financial Plan Entrepreneurs & Stories LA Sparks WNBA Basketball Candace Layla West Dance

Table of Contents Welcome... 3 What Do You Know? Selling a Small Business and Succession Planning... 4 Pre-Test... 5 Determining If a Business Should Be Sold... 6 Discussion Point #1 Reason for Selling

Page 1 Major Expenditures Note Taking Guide 2.6.7.L1: Major Expenditures Answer Key Housing Renting a Home Two factors that can influence the price of housing are: Answers will vary but may include: 1.

Credit Scoring and Wealth

the Problem In most games, it is wise to understand the rules before you begin to play. What if you weren t aware that you were playing a game? What if you had not choice whether to play or not? Everyone

Chris Leung, Ph.D., CFA, FRM

FNE 215 Financial Planning Chris Leung, Ph.D., CFA, FRM Email: chleung@chuhai.edu.hk Chapter 2 Planning with Personal Financial Statements Chapter Objectives Explain how to create your personal cash flow

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:

Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/

Income, Expenses and Budget module

Income, Expenses and Budget module Trainer s introduction The skills to control your personal income, expenses and budget are the most basic tools that people need in their financial toolkit. But many

Personal Financial Literacy Vocabulary

TEACHER GUIDE 5.3 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing Tools Priority Academic Student Skills Personal Financial

Retirement: Get Ready...1 Why planning makes sense...1 Where are you?...2 Getting Started: 20 s and early 30 s...3

Retirement: Get Ready...1 Why planning makes sense...1 Where are you?...2 Getting Started: 20 s and early 30 s...3 On Your Way: Mid-30 s to early 40 s...4 Crunch Time: Mid-40 s to early 50 s...5 Just Around

Canada Deposit Insurance Corporation (CDIC) a federal government organization that provides insurance to protect money deposited in Canadian banks

Glossary Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement at a

Car Title Loans. What is a car title loan? How does a car title loan work?

Car Title Loans What is a car title loan? When you take out a car title loan, you are borrowing money and giving the lender the title to your car as collateral. This means that the lender can repossess

My Credit Report Card

Lesson 1: My Credit Report Card Lesson Overview: This lesson will provide students with an overview of elements that are included in their credit report. Students will examine how various behaviors affect

Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money.

TEACHER GUIDE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Priority Academic Student Skills

Teacher's Guide. Lesson Nine. In Trouble 04/09

Teacher's Guide \$ Lesson Nine In Trouble 04/09 in trouble websites It's hard to admit and deal with debt or financial trouble. It can be a painful time, but students need to learn practical, beneficial

Saving and Investing: Getting Started

STUDENT MODULE 5.1 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing: Getting Started But Mom, why can I not have it

Chapter 113. Texas Essential Knowledge and Skills for Social Studies. Subchapter C. High School

Text of Adopted New 19 TAC Chapter 113. Texas Essential Knowledge and Skills for Social Studies Subchapter C. High School 113.49. Personal Financial Literacy (One-Half Credit), Adopted 2016. (a) (b) General

Bank Products. 3.1 Introduction

Bank Products Bank Products For many people, the first financial institution they deal with, and the one they use most often, is a bank or credit union. That s because banks and credit unions provide a

Hofstra North Shore-LIJ School of Medicine. Office of Financial Aid

Hofstra North Shore-LIJ School of Medicine Office of Financial Aid Consumer Credit and Your Credit Report Joseph M. Nicolini, MHA Director of Financial Aid What We Will Cover Consumer credit and credit

CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY

CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY Answers to Concepts Review and Critical Thinking Questions 1. The four parts are the present value (PV), the future value (FV), the discount

GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1. Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide

GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1 Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 2 Contents How Does

Make a Smart Start Toward Financial Success SUNY ORANGE STUDENTS

Make a Smart Start Toward Financial Success SUNY ORANGE STUDENTS A College Education is a Smart Investment High School Graduate \$25,000 Some College \$30,000 Associate s Degree \$32,000 Bachelor s Degree

CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY

CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY 1. The simple interest per year is: \$5,000.08 = \$400 So after 10 years you will have: \$400 10 = \$4,000 in interest. The total balance will be

Outstanding mortgage balance

Using Home Equity There are numerous benefits to owning your own home. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth. Over time,

GFL Comparison SB 40, New Standards, Old Standards

SB 40 Requirement New Standards GFL Comparison SB 40, New Standards, Old Standards STANDARD 1: Students will understand how values, culture, and economic forces affect personal financial priorities and

12-Step Guide to Financial Success

12-Step Guide to Financial Success Step 1: Be accountable and responsible The first step on the path to financial success is accepting responsibility. You are in control of your financial future, and every