Created by Camille Krum Help! I’m out of money! Personal Finance Basics.

Created by Camille Krum

Help! I’m out of money!

Personal Finance BasicsPersonal Finance Basics

Activity: How Much Do They Make?

Spending CreditEarning

Careers

Income Credit Cards

Expenses

Variable

Fixed Differential

Earning

Careers

Learn and Earn

High School Degree

Associate Degree

Bachelor Degree

Masters Degree

Doctorate Degree

$18,571 $26,536 $40,387 $48,872 $60,729

How Education Pays: For the Rest of Your Life

How much is your time worth?

Salary Year Salary Week

Benefits=40%

Total Salary

Total Week Value Per Hour

Value Per Minute

$15,000 $288.46 $115.38 $403.84 $10.10 $0.17

$20,000 $384.62 $153.85 $538.47 $13.46 $0.22

$25,500 $480.77 $192.31 $673.08 $16.83 $0.28

$30,000 $576.92 $230.77 $807.69 $20.19 $0.34

$40,000 $769.23 $307.69 $1,076.92 $26.92 $0.45

$50,000 $961.54 $384.62 $1,346.16 $33.65 $0.56

$60,000 $1,153.85 $461.54 $1615.39 $40.38 $0.67

$70,000 $1,346.15 $538.46 $1,884.61 $47.12 $0.79

$80,000 $1,538.46 $1,884.61 $2,153.84 $53.85 $0.90

$90,000 $1,730.77 $692.31 $2,423.08 $60.58 $1.01

Activity

Do you get tired of going to class every day? Complete the assignment and see what the value of a day’s education is over a 40-year work life. How much is attending each class really worth?

How Much is Class Attendance Worth?

Spending

Income

Expenses

Variable

Fixed Differential

Lifestyle costs

• Where you live• Clothes• Food• Transportation• Entertainment• Vacations• Other costs-car repairs

insurance

Reality Check

Take the reality check quiz online to see what your life style choice requires you to earn per hour.

URL:http://www.jumpstart.org/madmoney/pgv_money_rc_main.html

Activity: Cookie Monster• Select student to be employee

• Select student to be State Tax collector

• Select student to be Social Security Tax collector

• Select student to be Federal Tax collector

• Select student to be Health Insurance collector

• Select student to be Life Insurance collector

• Select student to be Donation collector

REALITY BITES

Do you know where your money goes?

Identify your spending traps—

For the next two days keep a spending log. Record everything you spend.

Financial GoalsShort term goal—pay for

immediate needs such as school, entertainment, clothes, etc.

Medium term goal—college education, cars, vacation.

Long term goal—retirement plans, change in career, travel

Activity: Road Map to Spending

• Divide into groups of three. In two minutes list as many items as they can in the following categories:

• Fixed Expenses• Variable Expenses• Differential Expenses• Each student completes A Road

Map For Spending

BudgetGo to computers in groups of three—if

not enough computers for all students.

Go to web site

and select career and salary from list.

Go to “Where does your salary go” and complete the activity.

Credit

Credit Cards

Three C’s of Credit

• Character—borrower’s willingness to pay you based on past history paying back loans

• Capability—ability to pay back money borrowed

• Collateral—property used to cover amount owed if fail to pay back money– Group students to do scenarios

A Credit Check

Perhaps you have not developed a personal credit history, but you do have a personal education performance history that reflects similar behavior patterns. On a piece of paper, answer the following questions:

1. Number of times you have missed class this semester.

2. Number of times you have been tardy this semester.

3. How many times have you turned in late assignments this semester.

4. How many times have you turned in incomplete assignments this semester?

5. How many times have you not turned in an assignment at all this semester?

6. How many times have you been asked by the teacher to change or improve your behavior in class this semester?

7. How many times have you forgotten to bring the required materials (pencil, disk, notebook, etc.) to class this semester?

TOTAL (Add the numbers listed for 1-7 above)

How did you do?

4 or less…………… Credit Granted!!

5o-7 ……………… You are going to need a cosigner

8 or more………… CREDIT DENIED!

FALSE

TRUE

FALSE

TRUE

FALSE

TRUE

FALSE

TRUE

FALSE

TRUE

Credits and Referencs

www.themint.org

www.jumpstartcoalition.org