3.9F Decisions involving money

Match

Match the following

• Human capital

• Income

• Labor

• Scarcity

• Availability

skills and education that help a worker make more money

Money someone gets from their employer

doing work that a person gets paid for

when there is not enough supply of a product and cost goes up

when there is plenty of a product for everyone who wants to but it and cost is low

• skills and education that help a worker make more money

• Money someone gets from their employer

• doing work that a person gets paid for

• when there is not enough supply of a product and cost goes up

• when there is plenty of a product for everyone who wants to but it and cost is low

Match

Match the following

• Borrow

• Lend

• Credit

• Interest

• Expenses

to take or receive something with the promise of returning it

to let your property (money, toys) for temporary use understanding that it will be given back

borrowed money from the bank with a promise to repay the money with interest

extra money paid back when money is borrowed

the cost required for something; the money spent on something

• to take or receive something with the promise of returning it

• to let your property (money, toys) for temporary use understanding that it will be given back

• borrowed money from the bank with a promise to repay the money with interest

• extra money paid back when money is borrowed

• the cost required for something; the money spent on something

In this lesson, we will identify decisions involving
income, spending, saving, credit, and charitable
giving.

Multiple Choice

What is income?

• The amount of bills a person pays monthly.

• The amount of loans a person borrows from a bank yearly.

• The amount a money an employer pays to an employee on a fixed basis.

• The number of hours an employee works per week.

• wanted items

• toys

• games

• electronics

• clothes

What would be an example planned spending?

What is an example of unplanned spending?

Multiple Choice

Which of the following best describes planned spending?

• Paying for goods or services that are expected

• Paying for goods or services that are expensive

• Paying for goods or services that are inexpensive

• Paying for goods or services that are unexpected

• putting money into a savings account

• piggy bank

Can we save money other ways? If so, how?

• Clothing Shelters

• Church

• Food Banks

What are some other places we donate money to help people?

A charity is an organization set up to
provide help and raise money for those in need.

I understand

income, spending,

saving, and credit but

what is charitable

giving?

When a person saves money for charitable
giving they voluntarily donate money to
others who need help. Sometimes donating
our time, talents, and unwanted goods can
be charitable acts of kindness too.

Yes.... My brother and I did that!

My brother’s school was participating in a charity called
“Walk for the Cure”. Students asked friends and family
members to donate money for every lap they walk or run
in order to help find a cure for cancer.

I knew my brother would walk 40 or more
laps so I promised to pay a flat fee of $40.

I did a charitable act by giving money and
my brother gave time and energy to the
cause.

Wow… I need to think about so many
things when I earn money and make plans

to spend it.

S
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PLAN

What if I simply don’t have enough income
to pay for all the things I need and want?

Brainstorm all the ways a
person may increase their
income or reduce their
spending.

Whenever I make a decision about
spending, I think about the questions my
dad taught me.

Is this spending a want or a need?

Is the cost reasonable? Can I get
it on sale if I wait?

Will the money I spend now be
needed more in the future?

When my parents make decisions about
how much to save they think about these
questions:

* What is our goal for saving?

* How much money will it cost to reach
our goal?

* How long will it take to earn that
much money?
* Where can we put the money we save
to earn the most interest?

That’s really smart! What questions
should I consider when deciding how
much to donate for charitable giving?

Brainstorm and discuss all
the questions a person may
want to consider when
making decisions about
donating money.

Thinking through these questions is very
helpful. What questions should we
consider when deciding whether or not to
use credit for something we need or want?

Brainstorm and discuss all
the questions a person may
want to consider when
making decisions about using
credit to purchase the things
we need or want.

Now we are making smart decisions.

Some people spend all their money and

never plan for the future. In what

ways will making good decisions

improve our way of life?

Brainstorm and discuss the
benefits of making a plan for
the money you earn.

Time to Work!

Show me

What you know!

Multiple Choice

Acme Auto Sales has car sales lots in Burnet, TX and Hutto, TX. The manager compared the total sales for each of the two locations. The manager noticed that the Burnet sales lot had greater annual sales than the Hutto sales location.

 

Which statement explaining why the Burnet sales lot had greater sales than the Hutto sales lot is most likely NOT true?

• The Burnet sales lot had greater annual sales because its staff had a greater average years of experience then the staff in Hutto.

• The Burnet sales lot had greater annual sales because its staff had received more customer complaints than the staff in Hutto.

• The Burnet sales lot had greater annual sales because its staff had received more training about the cars they sell than the staff in Hutto

• The Burnet sales lot had greater annual sales because its staff had received more training about good sales techniques than the staff in Hutto.

Multiple Choice

Most of the limes that people in Texas eat come from Mexico. Last summer, a disease destroyed most of the lime crops in Mexico.

 

Which statement best describes the effect the destroyed lime crops will have in Texas? 

• The price of limes will decrease because limes will be scarce.

• The price of limes will increase because limes will be scarce.

• The price of limes will stay the same because there will be more limes available

• The price of limes will decrease because they will not taste the same.

Multiple Choice

Mrs. Fritz told her class that one way to save money is to buy fruit that is in season. Fruits in season are fruits that are in their natural growing season and are ready to be picked.

 

Which statement supports what Mrs. Fritz told her class?

• The price of fruit that is not in season is usually less because people don’t want it.

• The price of fruit that is in season is low because the fruit spoils quickly.

• The price of fruit that is in season is low because more fruit is available to buyers.

• Not Here

Multiple Choice

Adam is planning his monthly budget. Which of these would NOT be a reason to save some money in a savings account?

• To be prepared for unexpected expenses

• To buy a new house for his family

• To pay for college for his son

• To keep people from asking you to lend them money

Multiple Choice

William has a part time job at a grocery store. He has a checking account and a small savings account. He struggles to pay his bills because he does not make much money. William would like a new, larger television set.

 

Which statement describes the most reasonable decision William could make about purchasing the new, larger television set?

• William could pay for the television set when he has saved enough cash.

• William could pay for the television set with a check even though he does not have enough money in his checking account.

• William could pay for the television set with the debit card since it doesn’t matter whether he has enough money in his checking account or not.

• William could pay for the television set with a credit card because he will not have to pay the credit card balance later.

Multiple Choice

Linda has a good job. She has a checking account and savings account. Linda pays her credit card bill on time, and she pays the entire balance each month.

 

Which statement does NOT describe a reasonable decision Linda could make about paying for her groceries?

• Linda could pay for the groceries with a credit card since she is able to pay her credit card balance every month.

• Linda could pay for the groceries with a check so she could keep track of how much money is in her account.

• Linda could pay for the groceries with cash because it is easy to carry a large amount of cash and she doesn’t have to worry about losing it.

• Linda could pay for the groceries with a debit card since the money comes out of her checking account and she can keep track of the money in her account.

Multiple Choice

Which situation describes a reasonable decision about donating money to a charity?

• Mr. Stephens received $4,000 on his monthly paycheck. He donated $2,000 to a local charity before he realized he would not have enough money left to pay his monthly bills.

• Natalie had $50 left after she spent her monthly earnings to pay her bills. She needed to spend the $50 to buy groceries for her family but she donated $25 to charity.

• Mildred was asked for a charitable donation of $200. Mildred made the contribution before determining if she had enough money to pay her expenses for the month

• Mrs. Majors had $500 left over from her paycheck after paying all of her monthly bills. She put $400 of the extra money into her savings account and donated $100 to her favorite charity

Multiple Choice

Megan charged $790 to her credit card account to purchase some new furniture for her apartment.

The balance on the credit card account was $0 before purchasing the furniture.

Megan made 6 monthly payments to pay off the balance on her credit card account.

Megan did not make any additional charges on the credit card account.

Megan calculated that she actually paid $948 to pay off the credit card account.

What is the most likely reason that Megan paid the credit card account $158 more than the actual cost of the furniture?

• Megan had to pay interest on the amount of money charged to her credit card account.

• Megan made a mistake calculating the amount of money she needed to pay back to her credit card account.

• The store raised the price of the furniture 6 months after Megan purchased it.

• Megan also wanted to purchase some other decorations for her apartment.

Multiple Choice

A company needs to hire a new manager. The table shows the years of training/education and the years of experience for 5 people who applied for the manager job.

 

Based on the information in the table, which person is most likely to get the manager job?

• Rita, because she has the most years of experience and training/education compared to the rest of applicants.

• Daniel, because he is listed first in the table

• Greg, because he has the fewest years of experience and training/education compared to the rest of applicants.

• Elisa, because the company might prefer to hire a woman instead of a man.