This For That http://www.youtube.com/watch?v=J
7hNOt2Y0J8&safety_mode=true&p
ersist_safety_mode=1&safe=active
http://www.youtube.com/watch?v=J
7hNOt2Y0J8&safety_mode=true&p
ersist_safety_mode=1&safe=active What did people do before
there was money? Barter! Columbus used beads for currency when he
bartered with the Indians. Today we use cash and spend with
ardor.
Slide 3
Questions for Real Life In what ways do we still barter today?
Why might bills and coins be smarter to use than bartering?
Slide 4
This For That Currency is another term for money (includes
coins and bills). Different countries have different currencies.
United States: dollar European countries: the Euro England: the
pound China: yen India: rupee Currency used to have value based on
that countries (gold, silver, and precious metals)
Slide 5
Different Countries Currencies
Slide 6
Exchange Rate Not all currency is equivalent to one another. A
dollar is NOT the same value as a British pound.
Slide 7
Exchange Rate CountryForeign CurrencyUS Dollar Value (France,
Germany, Italy, Spain, etc.) Euro 0.78$1.00 United KingdomPound
1.51$1.00 IndiaRupee 0.02$1.00 ChinaYen 0.16$1.00 VenezuelaBolivar
0.16$1.00 RussiaRuble 0.03$1.00 JapanJapanese Yen 0.01$1.00
CanadaCanadian Dollar $0.97$1.00
Slide 8
Gold Standard The Gold Standard was that every dollar the US
made was worth a certain percentage of how much gold, silver, and
other precious metals the US owned in their Federal Reserve. The
gold standard ended in 1933, because of the Great Depression. FDR
ended the gold standard, because he thought if he made more paper
dollar bills, he thought he could help the economy get going
again.
Slide 9
What is the US dollar backed by today? Not gold anymore. Full
faith of the United States government The paper bill does not have
value. But the idea of the dollar has the value the Federal Reserve
(part of the government that deals with money) puts on it. Federal
Reserve notes (dollar bills) are backed by all the goods and
services in the economy. When the US economy is strong, the US
dollar is confidently strong.
Slide 10
What trend do you notice?
Slide 11
TALK AND TURN: Is the US dollar becoming more or less valuable
over time? Why do you think this?
Slide 12
Inflation A rise in prices dependent on money available. You
get less for your money than you used to be able to get.
Slide 13
Example of inflation You buy a candy bar for 50 cents. A year
later, you go to buy the same candy bar and it's 55 cents. You
still have only 50 cents, but the price of the candy bar has gone
up. We can say that inflation is at work. The price of that bar has
been inflated. http://www.bls.gov/da ta/inflation_calculator.h
tmhttp://www.bls.gov/da ta/inflation_calculator.h tm :)
Slide 14
Inflation Calculator Activity
http://www.usinflationcalculator.com/
http://www.usinflationcalculator.com/ What did you discover about
inflation over time in the United States?
Slide 15
What causes inflation? Inflation may be caused by an increase
in the quantity of money in circulation. This has been seen most
graphically when governments have financed spending in a crisis by
printing money, leading to hyperinflation where prices rise at
extremely high rates. Another cause of inflation occurs when there
are many people and organizations who have power to control the
economy and raise prices.
Slide 16
The US produces a lot of paper money every day.
Slide 17
The US Mint The United States mint manufactures and distributes
United States coins and paper bills for circulation through
banks.
Slide 18
How can YOU manage your money? Money is part of our lives.
Responsible citizens are aware of how they control their money
coming in and going out. Making wise choices with our money will
help you be successful in life.
Slide 19
Where the Money Goes
http://www.youtube.com/watch?v=N9iZfxElc1A&sa
fety_mode=true&persist_safety_mode=1&safe=ac tive
http://www.youtube.com/watch?v=N9iZfxElc1A&sa
fety_mode=true&persist_safety_mode=1&safe=ac tive
Slide 20
Manage means to control My Goal: To teach you ways to control
your money now and later (when you are a teenager and adult), so
that you can make wise choices and have a successful life.
Slide 21
You earn money by working. Occupation: specific type of job.
What are your natural talents and personality traits that might
help you be good at a specific jobs?
Slide 22
Education It pays to stay in school. How long you stay in
school is one of the biggest factors in increasing your earning
power. The pay-off is obvious when you look at the average earnings
of different levels of education.
http://www.themint.org/tweens/learning-and- earning.html
http://www.themint.org/tweens/learning-and- earning.html
http://www.themint.org/tweens/starting- salaries.html
http://www.themint.org/tweens/starting- salaries.html
Slide 23
Occupation Worksheet What do you NOTICE? What do you KNOW? What
QUESTIONS do you have?
Slide 24
Degrees I can get: 1. High school diploma 2. Trade school (2
years + apprentice) 3. Associates degree (2-year at community
college) 4. Bachelors degree (4-year at university) Certificates:
teaching and other certifications by taking tests 5. Masters degree
(2-year at university) Law Degree (3 years) Medical Degree (5
years) 6. Doctorate degree (2-year + thesis paper) PhD Specialist:
internship (3 years)
Slide 25
How much does a degree cost? CollegeTuition for a year Rounded
Tuition Estimated Tuition for 4 years Harvard$40,016$40,000$160,000
University of Maryland $41,473$41,000$164,000 VA
Tech$19,105$19,000$76,000 University of Virginia (UVA)
$23,984$24,000$96,000 James Madison University (JMU)
$15,398$15,000$60,000 Stanford University $60,749$61,000$244,000
University of Alabama $36,667$37,000$148,000
Slide 26
How to pay for college? 1. Grants: Free money offered by the
school, the government, an organization, or a wealthy person to
meet the students need, reward merit, or both. 2. Scholarships: an
award for certain students who demonstrate excellence in something
the college values. 3. Financial Aid: money the school offers to
students who need help paying for college and have shown good work
ethic to prove their college worthy 4. Student Loans: to help
students pay for university tuition, books, and living expenses.
You have to pay it back over time WITH additional interest.
Slide 27
What can I get a Scholarship for? 1. academic excellence
(students who go above and beyond in every subject and get good
grades) 2. sports excellence (students who go above and beyond in a
certain sport and have been offered a position on that colleges
sports team) 3. student specific (students who show a certain
characteristic or show an interest in a special cause and have
volunteered to help their community) 4. career specific (students
who plan to get a degree to do a needed job like nursing, teaching,
etc.) 5. need based (poor students who do excellently in school but
cannot afford to pay for college)
Slide 28
Get A Job You can get a job as soon as you turn 15 in Virginia!
http://www.moneycrashers.com/part-time-jobs- high-school-students/
http://www.moneycrashers.com/part-time-jobs-
high-school-students/
Slide 29
What is an Income? How much money you make from a job Also
called wages or a salary Paycheck: a check saying the company or
person you work for owes you a certain amount of money that you can
cash in at the bank to get cash (dollars and coins) or put in your
bank account to save.
Slide 30
Direct Deposit
Slide 31
Employee: the person who works FOR the company (employer). Miss
O. is the employee of LCPS. Employer: the person or company you
work for. Loudoun County Public Schools is Miss O.s employer.
Slide 32
How to get hired? 1. Think about what you are good at? 2. Look
for companies/people who are hiring for certain jobs? (online,
signs, newspaper) 3. Write a resume List of experiences and job or
volunteer projects you have been a part of 4. Fill out a job
application and call the possible employer for an interview 5. Be
on time (or early) for your interview
Slide 33
Dress to impress! List what TO wear for dressing to impress:
List NOT what to wear for dressing to impress:
Slide 34
Lets decode a paycheck:
Slide 35
What do you NOTICE? What do you KNOW? What QUESTIONS do you
have?
Slide 36
Checks We use checks for paying someone money when we do not
have cash available. A check is connected with a persons bank
account. The check tells who or what company is being paid and how
much money you want taken out of your bank account. Checks will one
day go extinct.
Slide 37
Lets practice writing checks! Remember to write out the money
amount in word form. And use cursive to sign your name, verifying
that it is actually you who verify that this check is real and that
you officially authorize this transaction.
Slide 38
Bounced Check If you write a check for more than you have in
your bank account. Penalty fine plus the amount you wrote the check
for when this happens. Some penalty fines are just $20; sometimes
these fines are a LOT more, depending on your bank.
Slide 39
Checks will one day go extinct! Checks are being replaced with
the DEBIT card. When a debit card is swiped, money from your bank
account is automatically taken out of your account to pay. This is
DIFFERENT than a credit card, because it comes directly out of your
bank account.
Slide 40
3 Things to do with your money: 1. Spend 2. Save 3. Give
Slide 41
1. Saving For the future (college, training, opportunities,
etc.) For big fun things (trip or house) For emergencies (to fix
your car)* *Very important! Miss O. recommends saving $2,000 and
not touching it in case of an emergency. (Emergency Fund) Some
people call their emergency fund a rainy day fund.
Slide 42
Savings Account A bank account where you put money to save for
the future. Savings accounts normally have interest.
Slide 43
Interest A percentage (part) of the money amount you have in
that account that the bank adds to your money each month Example:
$15,000 1% = $15 $22,000 1% = $22 $45,000 1% = $45
Slide 44
Different Banks have different deals at different times for
different amounts of money. BankSavings Account Interest Capital
One1.1% Wells Fargo0.01% Ally Bank1.0% Cardinal Bank1.2%
SunTrust0.01% BB&T0.05% USAA0.10%
Slide 45
Deposit Putting money into your checking or savings
account
Slide 46
Ways people make their money grow: 1. savings account with good
interest 2. investing in a business that is doing well in the stock
market 3. buying a CD from a bank that says if you promise to not
touch the money for 10 years or 20 years, it will grow this certain
amount. 4. buying savings bonds from the government (similar to a
CD) 5. investing in an idea (check out all the facts before you
give money to it Be careful; there are many scams!)
Slide 47
Saving, Giving, and Spending
Slide 48
2. Giving Take a small part of your income (what you make) and
set it aside to give away to a cause that you feel is important to
you.
Slide 49
Why give? I have found over the years that giving makes you
feel good. By giving, you are practicing the quality of generosity.
Being a generous person is a valued citizen investing in your
community and world, benefiting others who dont have as much as
you. Miss O. sets 10% of what she makes aside to give away to a
different charity that helps others each month. But do what works
for you!
Slide 50
Charities and organizations that help people, animals, and the
environment. Think: what kinds of causes matter to me?
Slide 51
Save, Give, Spend
Slide 52
7.50 Once A Week http://www.youtube.com/watch?v
=GawH48QNDfc&safety_mode=t
rue&persist_safety_mode=1&safe =active
http://www.youtube.com/watch?v =GawH48QNDfc&safety_mode=t
rue&persist_safety_mode=1&safe =active Starting
Balance$7.50 Ice Cream Sandwiches ($0.50 x 5) $5.00 Chicken
Enchilada$3.00 Ending Balance (after the gum)$0.00 What does he
have left?
Slide 53
What I learned From: $7.50 Once A Week 1. Plan ahead 2. Compare
prices. 3. Earn money when you need extra. 4. Have a money plan. 5.
Money management is when you save enough to buy some really cool
stuff. 6. Many people call this balancing their budget.
Slide 54
Sample Budget http://www.moneyandstuff.info/pdfs/SampleBudge
tforTeens.pdf http://www.moneyandstuff.info/pdfs/SampleBudge
tforTeens.pdf A budget is a money plan. How much money do you have?
How much money do you need? W HEN YOU MAKE A BUDGET, START WITH
YOUR N EEDS F IRST !
Slide 55
Needs and Wants A need is something you MUST have to live: Food
Shelter Clothing A want is something you WANT to have, but dont
need to live:
Slide 56
Expenses What you spend your money on
Slide 57
CategoryMonthly BudgetActual AmountDifference INCOME:Estimate
Your Income Your Actual Income Wages/Income Paycheck, allowance,
birthday money, etc. $200$210$10 Interest Income From Savings
Account $5$4($1) INCOME SUBTOTAL $205$214$9 Sample Budget: Lets
pretend!
Slide 58
Sample Budget CategoryMonthly BudgetActual AmountDifference
EXPENSES:Estimate Your Expenses Your Actual Expenses Savings
Savings Account$10 $0 Bills Taxes From Paycheck $30$32($2)
Rent/Mortgage$0 Utilities: electric, cell phone, etc. $30 $0
Groceries/Snacks$15$12$3
Slide 59
Sample Budget CategoryMonthly BudgetActual AmountDifference
EXPENSES:Estimate Your Expenses Your Actual Expenses Car Car
Payment$0 Car Insurance$0 Gasoline$20$25($5) Shopping
Clothes$40$35$5 Other Shopping$10$0$10
Slide 60
Sample Budget CategoryMonthly BudgetActual AmountDifference
EXPENSES:Estimate Your Expenses Your Actual Expenses Fun
Entertainment Movies, pizza, video games, bowling, etc. $20$25($5)
Other ExpensesSki club $10 $0 EXPENSES SUBTOTAL $185$179$6 NET
INCOME Income Minus Expenses $20$35$15!
Slide 61
First Rule of Budgeting: Spend less than you earn!
Slide 62
Bills What comes in the mail, saying that you owe money for a
particular service like electricity, cell phone, or cable TV
Slide 63
What kinds of bills should I plan for? 1. rent or mortgage 2.
phone 3. cable TV/internet 4. electricity 5. gas (for a stove) 6.
water, sewer, trash 7. credit card(s)
Slide 64
Activity: Each group gets a different real bill to analyze.
What do you NOTICE? What do you KNOW? What QUESTIONS do you
have?
Slide 65
Taxes Money that is owed to the government Federal Taxes are
due on April 15 for the federal government (IRS) and are called a
1040. State Taxes are due on May 1 for the state government.
Slide 66
Tax Man Max http://www.youtube.com/watch?v=aIghpYdQ1dg&
safety_mode=true&persist_safety_mode=1&safe= active
http://www.youtube.com/watch?v=aIghpYdQ1dg&
safety_mode=true&persist_safety_mode=1&safe= active
Slide 67
Rent Money you pay to a someone who owns the apartment or house
you live in each month Another word for rent is to lease.
Slide 68
Mortgage Money you pay each month to pay for your house to own
it until you have paid the whole amount
Slide 69
Utilities Electricity Gas/Power Water Trash Sewer Cable TV
Internet Phone Etc.
Slide 70
Car Payment Instead of paying $25,000 at one time to buy your
car, you pay little amounts of the $25,000 each month until it is
all paid off. You are charged interest if you do not pay the whole
amount in full. The interest is a percentage of the amount added
onto your payment.
Slide 71
Car Insurance A payment you pay each month to an insurance
company, so that if / when you are in a car accident, the insurance
will cover the damages. Insurance is like an emergency fund that
you pay into each month to protect yourself from having to pay a
huge amount if you get into an accident.
Slide 72
Membership Fees Some people like to be members of clubs or
events. To stay being a member, you have to pay a monthly fee.
Slide 73
Entertainment Fun stuff! Movie tickets Fun snacks What
else?
Slide 74
The Checks IN the Mail
http://www.youtube.com/watch?v=GhBa12DobiM&s
afety_mode=true&persist_safety_mode=1&safe= active If you
have got a bill to pay or something you need to buy just write the
check and send it off in the mail