Unit 1 Taxes and Income Revised 19-20.pptx - Unit 1...

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Unit 1: Finances, Budgets, Income, and Taxes
Dave Ramsey Chapter 1 – Dave Ramsey – Introduction to Personal Finance What is Personal Finance (13 minutes)- Game of Chance (need dice)-Chapter 1 Dave Ramsey- Video 1.1 You and Your Money (14 minutes)- What is Personal Finance- Chapter 1 Dave Ramsey- Video 3.1 What is Personal Finance? 2
Vocabulary Vocabulary terms and definitions have been provided in a separate PowerPoint Presentation. 3
Budgeting Basics DVDs Budgeting Basics or Budgeting and Financial Decision Making 4
Mastering Money Money is anything you exchange for goods or services. Cash is the money made out of paper (dollar bills) and metal (coins). Electronic funds transfer (EFT) is when you move money from one account to another using online banking. People use credit cards to buy something and pay for it later. We also write checks , which are written orders to a bank to transfer funds from our account to someone else’s account. The real value of money is what it is worth to you. The decisions you make about spending your money show your values. 5 Finances are assets, or resources, in the form of money. Your personal finances include the money you earn, spend, and save. Chapter Personal Finance 3
Choosing a Method of Payment Cash is a good option for most purchases. When you use cash, you don’t have to worry about whether there is enough money in your bank account or how you’re going to pay your credit card bill in the future. The biggest drawback to using cash is that it can be lost or stolen. When you write a check, you are authorizing your bank to transfer money from your account to the account of the person whose name you write on the check. If you use a checking account, it is important to keep the account balanced, meaning you must keep track of how much money is in your account. If the amount of the checks you write is greater than your deposits. your account will be overdrawn (in deficit) and you will be charged a fee. 6 Chapter Personal Finance 3
Debit and Credit Cards A debit card is just like cash except it is more convenient. When you use a debit card, the money is automatically and immediately transferred out of your bank account, just as if you withdrew it as cash. A credit card lets you use credit—a loan— to buy now and pay later. Every time you use a credit card, you are borrowing money from the business that issued the card, such as the bank, store, or credit card company. The business pays for the purchase, and then you repay the business by paying your credit card bill. 7 Chapter Personal Finance 3
Financial Needs vs. Wants Your financial needs are the things you must buy in order to survive. Your financial wants are the things that will help you maintain a certain standard of living. A standard of living measures how comfortable you are based on the things you own. Financial needs and wants are different depending on your stage of life. A financial decision is a decision about how to manage your money. You can use the decision-making process for making financial decisions. 8 Chapter Personal Finance 3
*Needs and Wants Activity 9 Use any of the Needs and Wants Activity

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