Personal Financial Literacy

Financial Literacy

All things money!

Objective:

5.10 TSW apply mathematical process standards to manage one's financial resources effectively for lifetime financial security

Poll

When you hear the word money what do you think about?

• Food

• Home/ Apartment

• Clothes

• Car

• Games

What do we use money for?

• Give me some ideas and examples!

Multiple Choice

What is Tax?

• the means by which the society raises money to cover public costs

• money that we earn

Income Tax

When you work and you earn money (salaries, wages, tips, etc.), your employer is required to subtract a portion of your income and send it to the government.

Payroll Tax

The portion of an employee's earnings that the employer withholds, or holds back, from a paycheck. The employer sends this tax money to the government. This is typically for your Social Security and Medicare.

Sales Tax

Every time you buy things or services, you pay the sales or transaction tax. In Texas, our sales tax is 8.25%

Property Tax

When you own property (homes) you are required to pay taxes on it. Every year local governments do their budgets and determine how much property taxes revenue they will need to cover their costs.

Multiple Choice

What is Income?

• money we pay others

• money received, especially on a regular basis, for work or through investments

Gross Income

is the total amount of money an individual or business makes before deductions are added in

Deduction means - amount of money that one may subtract from one's gross annual income

Net Income

is the amount of money an individual or business makes after costs and deductions are factored in

Deduction means - amount of money that one may subtract from one's gross annual income

Multiple Choice

What is Payment?

• the action or process of paying someone or something or of being paid

• NOT giving someone something

Types of Payment

• Check - A business form ordering a bank to pay cash from a bank account

• Debit Card - A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

• Credit Card - A plastic card used to make purchases now and pay for them later

• Electronic Payment - made over the internet, that allows money to be taken directly from a consumer's bank account

Multiple Choice

What is a Budget?

• is a plan for the income a person or company receives and has allotted for spending and how it will be spent such as for rent, gas, groceries, clothing, etc

• spending money with NO plan

Balanced Budget vs. Unbalanced Budget

Balanced Budget - money you earn is the same as money you pay

Unbalanced Budget - more money is spent than you earn during a particular period