FINANCE$FINANCE$

““Dollars and Sense”Dollars and Sense”

““How Do I Pay For Stuff??”How Do I Pay For Stuff??” When buying a product or When buying a product or

service you can use…service you can use… CashCash Debit CardsDebit Cards Credit CardsCredit Cards LoansLoans ChecksChecks

CA$HCA$H

CA$HCA$H The simplest form of The simplest form of

payment. payment. Keeps your spending Keeps your spending

“in check.” “in check.” You may not always You may not always

have enough for big have enough for big ticket items.ticket items.

DEBIT CARD$DEBIT CARD$

DEBIT CARD$DEBIT CARD$ Closest to Closest to

cashcash Amount of Amount of

purchase is purchase is deducted from deducted from your bank your bank account right account right away. away.

DEBIT CARD$DEBIT CARD$ If there’s not enough money If there’s not enough money

in your account to cover your in your account to cover your purchase: purchase: Your card will be refused.Your card will be refused. Or-Or- You will be charged an You will be charged an

overdraft fee. overdraft fee.

7 $igns of $mart Debit Card Use7 $igns of $mart Debit Card Use 1. Memorize and protect your pin. 1. Memorize and protect your pin. 2. Immediately record transaction2. Immediately record transaction 3. Sign back of card3. Sign back of card 4. Keep receipts 4. Keep receipts 5. Use your bank’s ATM5. Use your bank’s ATM 6. Be aware of your surroundings6. Be aware of your surroundings 7. Immediately report lost/stolen 7. Immediately report lost/stolen

cardcard

CREDIT CARD$CREDIT CARD$

CREDIT CARD$CREDIT CARD$ Easy to take a Easy to take a

“buy now, pay “buy now, pay later” attitude.later” attitude.

You DO pay an You DO pay an interest amount interest amount on anything you on anything you don’t pay in full don’t pay in full right away. right away.

CREDIT CARD$CREDIT CARD$ With unpaid balances, the “real” With unpaid balances, the “real”

cost adds up fast. cost adds up fast. If you pay only the minimum If you pay only the minimum

balance each month, it could take balance each month, it could take years to pay off your balance.years to pay off your balance.

Credit card debt is one of the top Credit card debt is one of the top financial problems teens face. financial problems teens face.

LOAN$LOAN$

LOAN$LOAN$ Another form of Another form of

credit.credit. You agree to pay You agree to pay

interest for a set interest for a set amount of time amount of time (months/years) in (months/years) in addition to the addition to the amount borrowed. amount borrowed.

LOAN$LOAN$ If you don’t make your If you don’t make your

payments on time, you can payments on time, you can lose the item you lose the item you purchased.purchased.

You can risk ruining your You can risk ruining your credit history as well. credit history as well.

CHECK$CHECK$

CHECK$CHECK$ When you write a When you write a

check, money is check, money is deducted from deducted from you checking you checking account balance account balance once the once the merchant deposits merchant deposits it in the bank. it in the bank.

Using a Checking Using a Checking AccountAccount

““Writing Checks”Writing Checks”

6 Things6 Things The dateThe date Person receiving the checkPerson receiving the check Amount in numerical formAmount in numerical form Amount spelled outAmount spelled out SignatureSignature Memo Memo

Deposit SlipsDeposit Slips Name Name Amount depositedAmount deposited The dateThe date How the money is being How the money is being

depositeddeposited

RecordingRecording Why is it important to Why is it important to

record all charges or record all charges or credits? credits?

Fill in the following: Fill in the following:

RecordingRecording Check numberCheck number DateDate Description of transactionDescription of transaction Payment/debitPayment/debit Fee if anyFee if any Deposit/creditDeposit/credit BalanceBalance

How to SaveHow to SaveJust a few tips…Just a few tips…

Keep Track of Keep Track of SpendingSpending

Try this: for 1 month, write Try this: for 1 month, write down every penny you spend. down every penny you spend.

Whether it is $2 for a drink at Whether it is $2 for a drink at the mall, or $200 dollars for the mall, or $200 dollars for your new video game. your new video game.

Keep Track of SpendingKeep Track of Spending

Don’t be surprised to find that Don’t be surprised to find that you’re spending a lot on things you’re spending a lot on things that you really don’t need. that you really don’t need.

Impulse purchases add up fast.Impulse purchases add up fast.Stories?Stories?

Do It YourselfDo It Yourself Cooking your own meals.Cooking your own meals. Using a home dry-cleaning kit.Using a home dry-cleaning kit. Changing your own oil in your Changing your own oil in your

car. car. Be sure to stick to jobs you can Be sure to stick to jobs you can

handle.handle.

Ideas?Ideas?

Think Before You SpendThink Before You SpendWait a day or two before Wait a day or two before

making a purchase.making a purchase.Ask yourself: Do I really need Ask yourself: Do I really need

a digital camera to take on my a digital camera to take on my trip?trip? Could I get a disposable camera? Could I get a disposable camera? Could I borrow my sister’s camera?Could I borrow my sister’s camera?

Think Before You SpendThink Before You Spend

If you’re replacing an item If you’re replacing an item that’s broken, first see if it that’s broken, first see if it makes sense to have the old makes sense to have the old one repaired.one repaired.

Stories?Stories?

Get it For LessGet it For Less

Save money by choosing Save money by choosing store brands.store brands.

Use coupons.Use coupons.Watch for sales.Watch for sales.Shop at discount stores.Shop at discount stores.

Get it For LessGet it For Less Online shopping saves money too. Online shopping saves money too.

www.half.com www.half.com Buy in bulk when it makes sense. Buy in bulk when it makes sense. Consider buying second handConsider buying second hand

Platos closetPlatos closetStories?Stories?

Be CreativeBe CreativeYou can get more use out of old You can get more use out of old

things by seeing them in a new things by seeing them in a new way. way.

Ripped jeans could be used as Ripped jeans could be used as new shorts.new shorts.

You can frame calendar pages You can frame calendar pages or make something yourself for or make something yourself for wall decorations.wall decorations.

Be CreativeBe Creative

Before investing in something Before investing in something new, look for a creative way to new, look for a creative way to reuse something you have or reuse something you have or create some new works of art!create some new works of art!

Stories?Stories?

Bank AccountsBank Accounts

Know the facts….Know the facts….

Minimum BalancesMinimum Balances You may need a certain You may need a certain

amount in the account. amount in the account.

If you drop below that If you drop below that level you have to pay a level you have to pay a penalty. penalty.

FeesFees Some accounts have a Some accounts have a

service charge each service charge each month just to maintain month just to maintain your account. your account.

You may also be charged You may also be charged for each check you write.for each check you write.

FeesFees You can be charged for You can be charged for

each use of your each use of your ATM/debit card.ATM/debit card.

Avoid accounts with these Avoid accounts with these types of charges. types of charges.

Transaction LimitsTransaction Limits Some accounts limit the Some accounts limit the

number of withdrawals or number of withdrawals or other transactions you can other transactions you can make each month.make each month.

Types of Bank Types of Bank AccountsAccounts

Savings AccountSavings Account

Simplest type of account. Simplest type of account.

When you have money to When you have money to deposit, you take it to the deposit, you take it to the bank and give it to the teller. bank and give it to the teller.

Savings AccountSavings Account When you want to take money When you want to take money

out, you go to the bank and out, you go to the bank and make a withdrawal. make a withdrawal.

If you prefer you can make If you prefer you can make deposits and withdrawals at an deposits and withdrawals at an automatic teller machine (ATM). automatic teller machine (ATM).

Money MarketMoney Market When you open a money market When you open a money market

account, the bank invests the account, the bank invests the money you deposit. money you deposit.

This means that money market This means that money market accounts pay higher interest rates accounts pay higher interest rates than regular savings accounts. than regular savings accounts.

Money MarketMoney Market The catch is that you usually have The catch is that you usually have

to keep a minimum amount, such to keep a minimum amount, such as $2,500 in the account. as $2,500 in the account.

Most money market accounts Most money market accounts limit the number of checks you limit the number of checks you can write on the account. can write on the account.

CDsCDs With a CD (certificate of With a CD (certificate of

deposit) you agree to deposit deposit) you agree to deposit your money for a certain your money for a certain length of time. length of time.

This can be anywhere from This can be anywhere from three months to five years. three months to five years.

CDsCDs This is in exchange for a specific interest This is in exchange for a specific interest

rate that is usually higher than any other rate that is usually higher than any other accounts. accounts.

If you withdraw your funds early, you pay If you withdraw your funds early, you pay a penalty. a penalty.

Don’t commit for a long period if there’s Don’t commit for a long period if there’s a good chance you will need the money a good chance you will need the money sooner. sooner.

CheckingChecking You can use checks to pay for things You can use checks to pay for things

you buy, and the money comes out of you buy, and the money comes out of your account. your account.

Using checks lets you make purchases Using checks lets you make purchases without having to carry large amounts of without having to carry large amounts of cash.cash.

Its also better to mail a check than cash. Its also better to mail a check than cash.