Notes Com. 10.00 Money Management

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NotesCom. 10.00 Money Management

• Obj. 10.01
• Identify sources of income and types of spending.

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Income Sources / Spending

• Salaried employee is one who earns the same
  amount of money each pay period, regardless of
  the hours worked.
• A grace period on a credit card is usually the
  amount of time before a finance charge is added
  to what the balance is.
• ATM automatic teller machine. They allow
  customers to withdraw a certain amount of money
  from their account. When using a ATM machine,
  always lock your car doors and leave the area
  immediately.

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Income Sources / Spending

• When you purchase a item on credit, you will have
  to pay interest on the amount of money
  borrowed. Ex You pay 450.00 for an item and
  you make payments, 1 year on this purchase, In
  total you paid back 525.00. The extra 75.00
  was on the interest collected.

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Income Sources / Spending

• Money subtracted from your total pay on you
  paycheck are called deductions.
• Income is the amount of money someone earns and
  has available to spend.
• A debit card allows a person to pay for items
  without writing a check, but remember money will
  be subtracted out from their checking account.
  Write the amount down in your check book
  register.

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Income Sources / Spending

• To get the best economical credit, on a credit
  card, look for the lowest annual percentage
  rate.
• Savings accounts keep money safe and pays
  interest to you. This means you will make money
  with your money in the bank.
• Paying a loan, like a car note, in monthly
  payments means making regular payments toward the
  cost of the loan, for the period of time you have
  signed for. Ex 60 months of payments is equal
  to 5 year loan.

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Income Sources / Spending

• Net income is the amount of income available
  after taxes.

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Obj. 10.02

• Record factors that influence spending.

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Factors influencing spending

• If a consumer has a faculty product, they should
  first try to return the item to the same store
  where it was purchased.
• When evaluating an ad with a celebrity endorsing
  a product, a consumer should remember that the
  celebrity was paid , by the manufacturer to
  appear in the advertisement.

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Factors influencing spending

• Consumer rights and responsibilities
• 1. Right to be heard.
• 2. Right to be informed.
• 3. Right to redress/recourse.
• 4. Right to safety.
• 5. Right to choose/selection
• 6. Right to consumer education.

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Factors influencing spending

• The consumers right to redress means that a
  consumer has the right to a refund or replacement
  when products dont work properly.
• Product labeling offers some information, to the
  consumer, about the product.
• Slogans or songs used in advertising are designed
  to make consumers remember the ad, in order to
  help the consumer by the product. The purpose of
  advertising is to give the consumer more choices.

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Factors influencing spending

• Cell phones are not typically used to promote
  messages or advertisers from telemarketer.
• For a teenager, they should purchase items with
  their money, after thinking about the purchase
  going through the planning process. (Do I really
  need this?) (Can I wait till later?)

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Factors influencing spending

• Advertising is designed to attract attention and
  promote sales.
• Impulse buying is purchasing something that you
  didnt intend to buy. Think about candy near
  check out register???

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Obj. 10.03

• Explore ways to manage money.

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Manage Money

• When paying for a purchase with a check, remember
  to record the amount of the check in the check
  register immediately.
• Teenagers should only use their parents credit
  card when permission has be given and it is an
  EMERGENCY SITUATION. Ex car repair (unexpected
  expensive)

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Manage Money

• Budgeting
• Planning
• Spending
• Saving
• Electronic Banking

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Manage Money

• When choosing a bank the most important
  consideration to think about is fees that will be
  charged to you, as a customer.
• A check register is a booklet that comes with
  your checking account so that you are to write
  down each check number, check amount, date, and
  name of the person receiving the check each time
  you use it either writing a check out or using
  your debit card.

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Manage Money

• When depositing money, into your account, at your
  bank in order for it to show up on that DATE
  you must deposit your money before 200PM on that
  day.
• Making a deposit into your account, you need to
  fill out a deposit slip, list and total
  checks/cash on the deposit slip, sign the back of
  any checks you are depositing, and give all items
  to the teller or place inside envelope to the
  ATM machine.

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Manage Money

• Reconciling a bank statement means check register
  must match bank statement.
• When the bank is closed, customers can use their
  ATM card to get money out from their account.
• An outstanding check is one that has been
  written, but does not appear on your bank
  statement as clearing the bank yet.

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Manage Money

• A food budget should include the cost of all
  food used by the whole family.
• Endorsing a check means to sign the back of a
  check written to you.
• Expense is anything a person spends money on.
• Receipt is a written or printed record of a
  purchase for an item.