Download Exploring Life Skills 2B Personal Finance and Resource

Personal Finance and Resource
Management
Objective 2.02
Money Management/Budget
Money management is when you use your
wisely planned budget to help you see how
much money you have and how/where you
spend your money.
A budget is a written plan for spending your
money wisely.
To set a budget you should examine your goals
and include a savings plan. You will need to
know your income and expenses.
Types of Expenses
Fixed Expenses are expenses for which a set
amount of money must be paid regularly, such
as rent, insurance or tuition.
Flexible Expenses are expenses that vary in
amount and do not occur on a regular basis,
such as food, transportation, or
entertainment.
Your Resources
Resources are assets that can be used to meet
needs and fulfill wants.
Types of Resources
Human Resources are the qualities and traits
people have within themselves to get what
they need or want. Also called personal
resources. Ex: knowledge, skills, talents,
health, energy, time, personality, creativity
and work habits.
Your Resources cont…
Nonhuman Resources are the objects and
conditions available to people to help meet
needs and fulfill wants. Also it includes
material and environmental resources.
– Material Resources are the objects you own (DVD,
money, clothes, phone)
– Environmental Resources are assets found in
nature (water, air, soil)
Your Resources cont…
Private Resources are resources owned and
controlled by a person or a family (income,
houses, cars).
Community Resources are resources shared by
everyone and paid for through taxes. Also
called public resources.
Time Management
If you have good time management skills you
are good at organizing your time in order to
accomplish tasks.
Time and energy are the 2 most valuable
resources!!
Planning Your Time
• A Daily Schedule
• Schedule/Calendar (written plan for
reaching your goals)
• Avoid wasting time
• Procrastinate (to put off
difficult or unpleasant tasks
until later)
Improving Your Study Habits
• Have a place to study
• Plan a study schedule
Managing Your Energy
• Be sure to eat the right foods in order to have
enough energy to get your through your daily
activities.
• Be sure to get at least 8 hours of sleep a night
so that you will have the energy you need the
next day.
• Be sure to be physically active at least 30
minutes a day to increase your energy level.
Credit and Debit
Credit (or a credit card) is a loan that a person
uses to pay for things, but is expected to pay
back.
You will be charged interest on your credit
which is the amount of money the borrower
pays for the use of a lender’s money.
A debit (or a debit card) electronically
withdraws money from a person’s checking
account.
Paying for Purchases
You can write a check. A check is a written order
directing a bank to pay the person or business
named on the check. You have to have a
checking account in order to write checks.
You can pay on a layaway plan. A layaway plan is a
scheduled payment plan in which you pay a small
amount of money down and make regular
payments until you have paid for the item.
You can also use a credit or debit card or CASH!
Insurance &
Risk Management
Insurance is a protection plan to manage
personal or household risks.
A risk is an activity or action that might be
dangerous.
Risk management are the actions you take to
make risks less dangerous or not dangerous at
all.
Risk prevention are the actions you take to stop
consequences of risks from happening.
Savings and Investing
A savings is the money you set aside for shortterm or long-term goals.
A budget is a spending and savings plan.
Expense is the cost of goods and services
needed.
Interest is the amount of money the borrower
pays for the use of a lender’s money.