Personal Finance 59a-d

​Personal Finance

By Jean Pappas

Income

Earnings from work

It is limited!

Multiple Choice

Which is an example of income?

• wages in the form of a paycheck

• interest accumulated from a bank

• calculating a check book to find the balance

• taxes paid to the government for services

Budget

​A tool to plan the spending and saving of income

You cannot have a budget without knowing your income first.
A budget is necessary so that you do not overspend and can save to have an emergency fund.

Multiple Choice

This person has money leftover to save with this budget.

• True

• False

Benefits of Saving

​Reasons to SAVE:

• Afford a vacation or desired larger purchase

• Have an emergency fund

• Be able to give to charitable causes

• Have peace of mind that you are not in debt

Categorize

Options (6)

Afford vacation

Stuck at home

Give to charity

Pay interest trying to pay off debt

Have an emergency fund

Stress out becuase you are not prepared for an emergency

Benefits of Saving

Saving

Not Saving

Credit

​Borrow money with interest

A bank will give you a loan for a large purchase like a car or home with a lower interest like 10%.
A credit card company will give you a loan with a much higher interst rate like up to 30%.

Multiple Choice

When should you use credit?

• When all your friends have cool new clothes and you are feeling left out.

• When you have been dying to go that concert and have a steak dinner prior.

• When you need an outfit for an upcoming interview.

• When you want pizza and ice cream becuase you did poorly on your test.

Multiple Choice

What is the problem with having too much credit?

• It wil take a long time to pay it off and you will end up spending a lot more that the actual cost.

• It can help you get the things you want now rather than having to wait until you have enough money to afford things.

Multiple Choice

What is a good rule if you are using credit?

• use it sparingly for needs and not wants

• pay more than the minimum payment

• both answers are correct

Multiple Choice

Jason and Maria are a married couple without children who both work full-time.

Maria is a teacher, and her monthly income is $3,500. Jason is a firefighter, and

his monthly income is $2,800. Their expenses include: rent ($1,200), cars ($700),

utilities ($300), groceries ($500), and extras ($500).

How much is their total income?

• $3,500

• $2,800

• 6,300

• 3,200

Multiple Choice

Jason and Maria are a married couple without children who both work full-time.

Maria is a teacher, and her monthly income is $3,500. Jason is a firefighter, and

his monthly income is $2,800. Their expenses include: rent ($1,200), cars ($700),

utilities ($300), groceries ($500), and extras ($500).

How much is their total EXPENSES

• $3,500

• $2,800

• 6,300

• 3,200

Multiple Choice

Jason and Maria are a married couple without children who both work full-time.

Maria is a teacher, and her monthly income is $3,500. Jason is a firefighter, and

his monthly income is $2,800. Their expenses include: rent ($1,200), cars ($700),

utilities ($300), groceries ($500), and extras ($500).

How much is remaining for savings?

• $3,500

• $2,800

• 6,300

• 3,100

Multiple Choice

If the couple wants to go to Hawaii and need to save 10,000 dollars for the trip. How long will they need to save?

• At least 4 months

• over 2 years

• 9 months exactly