Will Work for Food Candy 1. p.1 If you bring back the packet 2. p.2 If you wrote a plan… Discuss with family… 3. p.4 If you did the 1 st week of 13- week Budget. 4. p.12 If you completed the five stocks.
Will Work for Food Candy 1. p.1 If you bring back the packet 2.p.2 If you wrote a plan… Discuss with family… 3.p.4 If you did the 1 st week of 13-week.
Jan 22, 2016
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Will Work for Food Candy
1. p.1 If you bring back the packet
2. p.2 If you wrote a plan… Discuss with family…
3. p.4 If you did the 1st week of 13-week Budget.
4. p.12 If you completed the five stocks.
Personal Management Merit Badge
$
Lots of effort , but totally worth it!
HANDOUT
• Fill in the blanks.• OR use your own pages.• You may use the words I’ll suggest,
or -• You may use other words you like
better!Brainless
attendance
HANDOUT
• Boxed portions: To be reviewed with your Merit Badge Counselor.
To help you in the future: Keep it! Read again in 5 yrs!
• If I go too fast, stop me.
• Bring this handout back next time:
2nd ____________
• Name ______________________________________• Date of merit badge classes: 1st ____________
*
• AFTER you’ve completed EVERYTHING (ready to discuss)!
p.2, Requirement #1:
Do the following:1(a) Choose an item that your family might want to purchase that is considered a major expense.
1(b) Write a plan that tells how your family would save money for it.
• We can save money by:__________________________________________________________
Item chosen: _______________Approximate cost: ___________
HDTV
Mostly _______ earnings, but each of us could contribute.
$1,000
p.2, Requirement #1b (continued):
1(b)1. Discuss the plan with your merit badge counselor.*
*When are you going to discuss this with your merit badge counselor?
• (FHE, or?)
2. Discuss the plan with your family.
**When are you going to do this?
3. Discuss how other family needs must be considered in this plan.
p.2, Requirement #1c:
c. Develop a written shopping strategy for the purchase:
1. Determine the quality of the item (using consumer publications or rating systems)._______________________________________EBay, Amazon, Consumer Reports…
p.2, Requirement #1c:
2. Comparison shop for the item.Find out where you can buy the item for the best price.
Call around
Who you called: What you learned:
____________ ________________
____________ ________________
Sleazy’s Pawn Shop Don’t go there!
p.2, Requirement #1c:
2. Comparison shop for the item.Find out where you can buy the item for the best price.
Study ads
Where you looked: What you learned:
________________ ____________________
________________ ____________________
Newspaper
Online sellers
Sears had a great sale
Include shipping costs…
p.2, Requirement #1c:
Did you find a great sale or a discount coupon? ________ ____________________________________________
Can you buy the item used? ___________________
Should you wait for a sale? ___________________
Maybe, but________
I could, but…
Yes
Consider alternatives:
p.3 Req. #2a: Prepare a budget reflecting:
Track your actual.
Your expected income (allowance, gifts, wages), Your expected expenses & savings.
1st Week INCOME
Expected Actual
Allowance ______ ______
Job ______ ______
Gifts ______ ______
_________ ______ ______
_________ ______ ______
_________ ______ ______
Total in ______ ______
EXPENSES & SAVINGS
Expected Actual
Donations ______ ______
Savings ______ ______
Savings (for… ______ ______
Save to Buy ______ ______
Junk food ______ ______
_________ ______ ______
Total Out ______ ______
INCOME
Expected Actual
Allowance _____
Job _____
Gifts _____
_________ ______ _____
_________ ______ _____
_________ ______ _____
Total in _____
OUTGO
Expected Actual
Donations ______
Savings ______
Savings (for… ______
Save to buy ______
Junk food ______ ______
_________ ______ ______
Total Out ______
$10
$10
$10
$30
$ 3
$ 3
$ 3
$ 3
$30
$422(b). Compare expected income with expected expenses (outgo). determine steps to balance:
working more
EXAMPLE
I can increase income by ___________
2. If outgo exceeds income, or decrease expenses by_______________buying less junk
INCOME
Expected Actual
Allowance _____
Job _____
Gifts _____
_________ ______ _____
_________ ______ _____
_________ ______ _____
Total in _____
OUTGO
Expected Actual
Donations ______
Savings ______
Savings (for… ______
Save to buy ______
Junk food ______ ______
_________ ______ ______
Total Out ______
$10
$10
$10
$30
$ 3
$ 3
$ 3
$ 3
$122(b). Compare expected income with expected expenses.
2. If expected income exceeds expected outgo, state how you would use the excess money: I could have some for __________________
Another EXAMPLE
better stuff later.
INCOME
Expected Actual
Allowance _____
Job _____
Gifts _____
_________ ______ _____
_________ ______ _____
_________ ______ _____
Total in _____
OUTGO
Expected Actual
Donations ______
Savings ______
Savings (for… ______
Save to buy ______
Junk food ______ ______
______ ______
Total Out ______
$10
$10
$10
$30
$ 3
$ 3
$ 3
$ 3
$12
$10
$20
$20
$50
$ 5
$ 5
$ 5
$ 5
$20
$40
• What actually happened?
Presents
• This guy should have
EXAMPLE
$10 more now than 1 week ago.
If you finish one week of expected and actual by next class...
(How about putting it on your pillow?)
p. 3-7, Req 2a Track your actual income, expenses, and savings for 13 consecutive weeks.
• Income• Source Actual• ___________ _______• ___________ _______• ___________ _______• ___________ _______• ___________ _______• ___________ _______• Total _______
• Expenses• Where Actual• ___________ _______• ___________ _______• ___________ _______• ___________ _______• ___________ _______• ___________ _______• Total _______
• How are you going to remember to do this each day?
• Share this with your merit badge counselor.
p.8 Req. 3a, 3b Discuss with your merit badge counselor Five of the following concepts:
a. The emotions you feel when you receive money:
b. How the amount of money you have with you affects your spending habits:
*
If I have lots of money, I tend to spend ______
If I’d stolen the money, I’d feel _____
When I honorably earn money, I feel ______
more.
If I don’t have my money, it is ______ to spend. harder(Unless I have a credit card, then its easy to spend money I don’t have.)
Good
Bad!
I’m usually less __________ about it.
p.8, Req. 3c
c. Your thoughts when you buy something new:
Your thoughts about the same item 3 months later:
I usually feel ___________________
excited
happy
excited
happy
c. Explain the concept of:
buyers remorse
Often after buying something people feel _______ sorrow (remorse)
Especially if they ________ $, when it is time to make payments, they feel sorry or have _______ _______.
borrowed
and wish they could undo the _________.purchase
buyer’s remorse
p.8 Req. #3c Discuss with your merit badge counselor Five of the following concepts:
p.8, Req. 3d, 3e
3d. How hunger affects you when shopping for food items:
Did the item work as well as advertised? ___ _______
When hungry, I tend to buy .
3e. Your experience of buying an item after seeing or hearing advertisements for it.
Not always.
Once in awhile it is actually _____ than I expected.Often, the ad makes it sound _____ than it actually is.better
better
more
then, most of it gets ___________________
then into the ___________
p8, Req. 3f. Your understanding of
what happens when you put money into a savings account:
They pay me _______ for the use of my money.
They can afford to because they charge the borrowers interest at a ______ rate than the rate they pay me.
interest
higher
It goes into the ______________, teller’s drawer
bank’s safe
loaned out or invested or into the ___________bank’s bank
Charitable Giving
3g. Explain its purpose and your thoughts about it:
I think it is a _______ idea to give to a charity or church.
Good charities use money to help the ____ and _____, build buildings for __________ and other __________ purposes.
poor sickworship worthwhile
I can save _____ of my earnings for more important things I’ll need in the future.
I can use my money for ____ worthwhile purposes.
p.8, Req. 3h.
What you can do to better manage your money:
I can use ____ of it for junk.
more
less
more
• usually means: a ____ risk way to accumulate money.
• “Saving”
p. 9, Req. #4. Explain the following to your mb counselor:
4a. The difference between saving and investing, including reasons for using one over the other.
low-
*
• My father seemed to want me to save ever penny I got.
• I didn’t like that. But, I learned to stash 10%!
Example
Save $100 each month at 5%
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000
Savings $1200 Interest Earned $30
1styear
Example
Save $100 each month at 5%
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000
Savings $6000 Interest Earned $830
5thyear
Example
Save $100 each month at 5%
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000
Savings $12000 Interest Earned $3530
10thyear
Example
Save $100 each month at 5%
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000
Savings $18000 Interest Earned$8730
15thyear
Now earning > $110+ each Now earning > $110+ each monthmonth
p. 9, Req. 4a
Three Recommended Savings:
1. Save _____% in an Emergency Fund.
Try to never, ever spend this money!
10
2. Save enough for your “_____ ______” expenses.
Stuff you know you’ll be spending money on once a year!
for sure
3. Save whatever you can just to _____ ______ .buy stuff
Example
Savings Goal:
0%1%2%3%4%5%6%7%8%9%
10%
Emergency For Sure Buy Stuff
p. 9, Req. 4a. Explain the following to your Merit Badge Counselor:4a. The difference between saving and investing, including reasons for using one over the other.
Stocks & Bonds
• “Investing” usually means ______ -risk with a hope of a ______ return.
higherhigher
• Reasons for saving rather than investing:
• People who save money in a bank or credit union are much ____likely to lose it. And more likely to be able to get it when they ______ ___
p.9, Req. 4a (continued).
Reasons for saving: People typically save money for future needs including ____________.emergencies
less
• Banks and credit unions are usually very careful with our $, and (in some states—like Utah) our savings are insured
• by agencies of the U.S. Government: _____ & _______
FDICNCUA
want it
• Reasons for investing rather than saving: Although the risk of loss is higher, and some investments require lots more ______, some investments earn ___ _____ money.
p.9, Requirement 4a.
• Reasons for investing: People invest in hopes of earning ____ ______.more money
lots more
Stocks & Bonds
work
p.9, Requirement 4b.
4b. Explain the concepts of return on investment and risk.
• Return on investment refers to the amount you receive __ _____ of the amount you invested.
in excess
• Risk is a measure of the possibility of suffering harm or ____.loss
0
20
40
60
80
100
120
140
at 5% at 10% at 25%
ReturnInvest
0
20
40
60
80
100
120
at 5% at 10% at 25%
ReturnInvest
(Why would anybody choose 5% when they could invest at 25%?)
risk
• Also: The greater the rate claimed, the higher probability for _______.scams
expected
actual
• The higher the rate, the greater the ____.
0
500
1000
1500
2000
2500
3000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
p. 9, Requirement #4c Explain the concepts of simple interest and compound interest.Suppose you bury $1,000, and dig it up 20 years from now.
• Instead, suppose you put it in the bank and earn 5% for 20 years
• PRINCIPAL
0
500
1000
1500
2000
2500
3000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
p. 9, Requirement #4c Simple interest.
• Simple interest is: Interest paid only on the ________ balance.principal
You withdraw the interest, and if you bury your earnings
• P R I N C I P A L
• INTEREST
0
500
1000
1500
2000
2500
3000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
p. 9, Requirement #4c Explain the concepts of simple interest and compound interest.
Now, suppose you have them add your interest to your balance.
interest.Compound interest: Interest paid on both the principal and previously paid _______
Principal
Compound
Interest
Simple
Interest
p. 9, Req. 4c
Explain how these (simple interest & compound interest) affect the results of your investment exercise (p.12).
If I save or invest $1000 and I spend all the earnings as I get it, I do not get the advantage of _____________.
If I have my earnings added to the investment, I earn interest not only on the ________
but also on the ______ _________
compounding
principal
0
500
1000
1500
2000
2500
3000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
prior earnings
Thus, I get simple interest and compound interest.
whether to ___, ___, ____, ____, or _____ a stock.
p. 10, Req. 5
Select 5 publicly traded stocks from the business section of the newspaper. [Or, internet]
Explain to your merit badge counselor the importance of the following information for each stock:
a. Current price:
It is important to know how _____ an investor can buy, and help him decide
much
The current price may be obtained ______, from a ____ ______, or estimated from _________.stock broker
buy sell trade hold avoid
newspaperon-line
p. 10, Req. #5b
Explain to your MB Counselor the importance of:
b. How much the price changed from the previous day:
If it went down a lot, something might be seriously ______ with the company,wrong
It is important to see if the price changed, and how _____, and whether it went __ or ____.much up down
Or, something might be seriously ______ with the ______ _______ in general.
wrongstock market
p. 10, Req. 5c.
Explain the importance of:
c. The 52-week high and the 52-week low prices:
If it went down a lot, something might be seriously ______ with the company, or with the stock market __ _______.
wrong
It is important to see if the price has been about the same, or ______, or _____ than it is now.higher lower
It might be a good time to ___.
But it might be a good time to _____ __.
buy
avoid it
• [Knowing this is enough to realize you need to know __ ___ ______!]
in general
a lot more
Example
p. 10, Req. # 5 Obtain the business section of your newspaper
Examplep. 10, Req. # 5 Obtain the business section of your newspaper and obtain the following for 5 stocks:
Date of Newspaper: ________
Name1st stock Close Price Net Change 52-wk high
“Name” “Last” “Chg” “1yrhi”
______________ _________ _________ ___________
Explain: The importance for this stock:
Current price (est: _______) __________________________
Change from previous day: __________________________
The 52-week high: __________________________
10/2/04
DeltaAir 3.34 + .19 15.54
3.50 Low enough to buy a bunchGain 19¢ per share (good)Lost $12.20 p/share: danger
• Usually buy 100 shares at a time.
Example
Should I buy?
• (on 8/28/06: 68¢, then down to $0)
• SATURDAYExample
p. 10, Req. # 5 Obtain the business section of your newspaper and obtain the following for 5 stocks:
(I’ve already given you 1, do the other 4 by next class for another candy)
Date of stock quote: ________
Name 2nd stockClose Price Net Change 52-wk high
“Name” “Last” “Chg” “1yrhi”
______________ _________ _________ ___________
Explain: The importance for this stock:
Current price (est: _______) __________________________
Change from previous day: __________________________
The 52-week high: __________________________
Will Work for Food Candy
Make sure your wrappers get in the garbage!!!
Honor System
1. p.1 If you brought back the packet
2. p.2 If you wrote a plan… Discuss with family…
3. p.4 If you did the 1st week of 13-week Budget.
4. p.12 If you completed the five stocks.
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