Download Credit Card

Warm UP
1. What is the difference between gross pay and net pay?
2. What is the difference between a deduction and a bill?
3. What is the difference between revenue and expenditures in your
budget?
4. What is the difference between a premium and a co-pay on your
insurance policy?
My Savings Style Survey
1= That’s me 2= Sometimes 3= That’s not me
1. I count the change I’m given by cashiers in stores and restaurants.
2. I always pick up all the change I receive from a transaction in a store; even it’s
only a few cents.
3. I don’t buy something right away if I’m pretty sure it will go on sale soon.
4.
5.
6.
7.
8.
9.
I feel a real sense of accomplishment if I buy something.
I always remember how much I paid for something.
If something goes on sale soon after I’ve bought it, I feel cheated.
I have money in at least one interest-bearing bank account.
I rarely lend people money.
If I lend money to someone repeatedly without getting it back, I stop lending it to
that person.
10. I share resources (e.g. CDs, books, magazines) with other people to save
money.
11. I’m good at putting money away for big items that I really want.
12. I believe most generic or off-brand items are just as good as name brands
1
2
3
Add up your ratings and answer these
questions.
•
•
•
•
•
12-15 Very aggressive saving style
16-20: Careful saving style
21-27 Fairly loose saving style
28-32 Loose saving style
33-36 Nonexistent saving style
1. What are the advantages and disadvantages of your saving style?
2. How do you think your saving style would affect your ability to keep to a budget?
3. If you are dissatisfied with your saving style, how might you be able to change it?
5.3 manage a checking and savings account
Debit Card
$371.00
Savings Account
$1029.00
Credit Card
$1200.00
5.3
Credits and Debits
What is the purpose of a financial institution?
• An institution that collects deposits and provides a financial reason to
do so.
• Types: financial reason
• Bank: give out loans, provides low interest rate
• Credit Union: give out loans, provides higher interest
rate
• Insurance Company: pays money if someone is in
trouble
• Investment Institution: helps individual to invest money
in a place where they can make more (ex. Stock
Market)
Debit vs. Credit
• Debit: Taking money out of your account
(*NOTE* this is different than DEBT)
• Credit: Putting money in your account
• Checking v. Savings
• Checking Account: A bank account where you
can easily transfer and use the money
Checking Account cont…
• Debit Card: Money that can be easily
transferred in any transaction from checking
account (online, store, atm machine)
• Check: written statement asking for money
to be taken out of checking account
Balancing your checking account
• Your first paycheck is $4000.00
• Fill out the deposit slip
• Write in CHECK in the box under CASH
• Add this deposit (credit) to your account.
$2576.21
ATM for cash
Using Card
$516.27
Using Card
$46.23
Using Check #1000
$237.19
Using Check #
1001
$40.00
$15.72
Using Card
5.4 Compare and contrast the purposes of
credit and debit
Fill out the last blank check to Shinn
Enterprises for Rent for this month.
Your rent costs $425.85. Record
This transaction in your check register.
• Savings: A bank account where you store
money and can earn money (interest)
• Interest: earning extra money for lending it
out
• Credit
• Credit: money is “credited/deposited” to your
account as a loan (borrowing money)
• Interest: Paying extra money for borrowing
• Types of Credit:
• Credit Card: can borrow a certain amount
of money to spend
• Student loan
• Car loan
• Mortgage (home loan)
• Credit line: how much money is available for
borrowing
• “Financing”: borrowing money to pay for an
item that you will pay off over time
• Debt: money that you owe
• Collateral: the borrower agreeing to give up
property in the event he/she can’t pay off the
loan
• Ex. Foreclosure: giving up home as collateral
when the borrower can’t pay it off.