Grade 12 Family Studies. Scrooge McDuck and Money! v =tP3Rv-nib5M&safe=active.
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Transcript of Grade 12 Family Studies. Scrooge McDuck and Money! v =tP3Rv-nib5M&safe=active.
Resource ManagementGrade 12 Family Studies
Scrooge McDuck and Money!http://www.youtube.com/watch?v=tP3Rv-nib5M&safe=active
FinancesWhat are finances?
Monetary resources of an individual or organization
EquityWhat is standard of living?
a grade or level of subsistence and comfort in everyday life enjoyed by a community, class, or individualRanges from low to high
Financial InsecurityWhat is it?
Not having the resources to support a certain standard of living
Sometimes caused by:UnemploymentDemotionPovertySerious illness/disabilityDivorce/SeparationPoor spending habits
Consumer Debt Money owed by an individualPrimarily caused by purchasing consumer
goods or services beyond their standard of living
…..How does someone get out of debt?
How are people spending their money?1) Fixed Expenses
Remain the same over time.Must be paid by a certain date.Examples:
Mortgage/Rent payments Loan payments Car insurance
How are people spending their money?2) Variable Expenses
Payments that are made every month, but the amount changes.
These expenses change as your needs change (in the winter you need a gym membership but in the summer you run outside)
Examples: Groceries Phone bill Transportation costs (bus pass, gas for your car, car
maintenance) Club dues
So how does a person/family get out of debt?????
Would it be easier to cut “fixed” or “variable” Expenses?....
EconomizingWhat can we cut from our budgets without lowering
our basic quality of life? Some examples…
1) Food Must have the foods that are essential to you and your
families health. Cut the prepared/packaged foods and try to make meals and
snacks from scratch. Compare prices of different stores using newspaper ads and
the internet. Buy sale items/use coupons Buy “generic foods” Buy in bulk Eat at home—Fast food is expensive!
Economizing…2) Clothing
Buy during end-of-season sales “Name-brand” should hold less importance when
economizing Shop at discount/second hand stores
3) Entertainment Entertain at home—board games, movie nights Borrow movies from the library Wait for movies to get to the “cheap seats”
Economizing…4) Maintenance
Do it yourself!—Before hiring someone to do something at your house, try to do it yourself if you know how!
Use “how-to” books and internet tutorials Examples: House cleaning, painting, cutting the
lawn, washing your car, etc.
5) Incidentals Examples: Alcohol and Tobacco Can result on significant savings Health and relationships would improve
Benefits of Economizing
Can save A LOT of moneyLess stress in the homeA person feels more in control of their lifeBy creating a budget, a person/family can see
where all of their money is going
Case Study In pairs or individually, read through the following case study. Answer the
questions and submit a half page write-up (can be typed).
Joanne and Clinton are married with no kids. Both of them work 9-5 jobs, Monday-Friday. The couple is finding that they are living pay-cheque to pay-cheque and are not putting any money away for the baby they are trying to have. Both Joanne and Clinton drive their own cars to and from work each day. They enjoy fast-food and rarely cook at home. They also enjoy going for long walks in the evening along the river behind their home with their dog. This couple enjoys socializing: Joanne takes yoga classes three times a week with her girlfriends and Clinton often goes out for food and drinks with his friends.
In order for the couple to start saving for their baby, which activities should they stop? What could they do
instead? What activities should they keep doing?