What does this mean to you?

FCS 7TH GRADE

Money Management

Income

Income: The amount of money you have coming in (ADDITION)

Money you receive from: Babysitting Mowing Lawns Allowance

Expenses

Expenses: The goods and services you spend money on (SUBTRACTION)

2 Categories of Expenses: Fixed: Expenses that must be paid and don’t vary in

amount (NEED) Transportation Lunch Money

Flexible: Expense that vary from time to time (WANT) Concert Tickets New Shoes

Budgets

Budget: A plan for spending and saving the money you have available.

Steps to creating a budget:1. Decide what are you most important

expenses and write them in order.2. Record your expected income-keep weekly

records.3. Write down what you plan to spend on

your expenses.4. Review your budget periodically.

Accounts

Checking Accounts: Consumers place money into an account and use checks or debit cards as cash to withdraw or take out the money in the account.

Accounts

Savings Accounts: Increase the amount you deposit by paying you interest. Used to save for a major goal

College Car Vacations

Checks

• Checks: Used the same as cash, fill out completely and in ink.

• You can only write checks up to the balance you have in your account.

• Check Register: Small booklet used to help keep a record of your account.

You should check your monthly banking statement and make sure it matches the balance you have written down for your account.

WHY?

Debit Cards

Debit Card: Used the exact way as filling out a check and using it. There is no interest on debit cards like on a credit

card. The money comes straight from your account.

Depositing Money

Deposit: Putting money into an account.Fill out a deposit slip for the amount you

want to put into your account.

ATM

ATM: Automatic Teller Machine You can use your debit card at the ATM to do several

things: Withdraw money Deposit money Check your account balance

Credit

Credit: An arrangement that lets you buy things now and pay for them later.

2 Major Types: Loans: Borrow money from a bank and pay back on a

payment plan Sales credit/Charge accounts: Receive purchase now

and pay a store or credit card company later for what you owe.

Interest

Interest: The money a financial institution pays at regular intervals for the use of your money.

Example: I have a credit card with a limit of $1,000 with a 5%

interest. How much will I have to pay monthly?

$1,000x5%=$50 OR $1,000x0.05=$50