Personal Financial Literacy

Personal Financial Literacy

Understanding a Paycheck: Table Talk

• ​Net income

• ​Income

• ​Deduction

• ​Employer

• ​Employee

• ​Income tax

• ​Gross income

• ​Wages

• Budget

• Balanced budget

• Check

• Debit card

• Electronic payment

• Expense

• Product/Service

• Deposit

• ​Savings

• Withdrawal

• Transfer​

Checking/ Savings Accounts: Table Talk

​Turn and Talk

1. ​What do you know about credit cards?

   1. ​I know credit cards...

2. ​Do you want a credit card? Why or why not?

   1. ​Yes, I want a credit card because...

   2. ​No, I do not want a credit card because...

​Credit Card:
Table Talk

• ​Interest

• ​College

• ​Loan

• ​Borrower

• ​Lender

Simple Interest Formula

Simple interest is calculated by A= P( 1 +rt) where P is the original amount, r is the rate in decimal form, and t is the time.

Simple Interest Formula

Fill in the Blank

You put $1000 into an account. The account earns $100 in simple interest in 4 years. What is the annual interest rate?

.

%

Compound Interest

compound interest can be defined as interest you earn on interest. With a savings account that earns compound interest, you earn interest on the principal (the initial amount deposited) plus on the interest that accumulates over time.

Compound Interest

Multiple Choice

Matt invested $1000 at 5% interest, compound annually, for 10 years. What is the principal?

• P=$1000

• P=5%

• P=$100

• P=10 years

Fill in the Blank

Matt invested $1000 at 5% interest, compound annually, for 10 years. What is the interest rate as a decimal point?

.

Multiple Choice

Matt invested $1000 at 5% interest, compounded annually, for 10 years. How much interest did he make?

• $628.89

• $700

• $500

• $528.89

Academic Writing Journal

1. What is a benefit to having a credit card?

   1. ​A benefit to having a credit card is...

2. What is a disadvantage to having a credit card?

   1. ​A disadvantage of having a credit card is...

3. ​Do you think you will eventually get a credit card? Why or why not?

   1. ​Yes, I think I will eventually get a credit card because...

   2. ​No, I do not think I will eventually get a credit card because...