WHERE DOES MONEY COME FROM?

Personal Finance

Get Paid

Salary: Money paid to an employee on a regular basis Withheld: Money held to pay taxes. Deposit: Money that is put into your

bank Withdraw: Money that is taken out of

your bank Disposable Income: Money you are

able to spend.

Salary: $36,000.00

S/12 = $3,000 per monthTax Rate= .25 -- $750.00

(withheld)_____________________________

_$2,250.00 per monthMED

Insurance & Social Security

--$125.00

_______________________

Able to Deposit $2,125.00

What does that money go to???? Living on your own

Car Apartment / House Insurance (Auto/Living) Food (1 person / $180.00 month) Gas ($120 month) Utilities Fun Money!!! Shopping / Entertainment

WHAT ARE WE MISSING??????

What does that money go to???? Options to Life (Accessories)

College Education (Student Loans) Pet (Pet Food/Vet Expenses) Children (YOU)▪ Child’s Education

Repairs Weddings Vacations Savings Retirement TOYS (TVS / Pool / 4 Wheeler……ENDLESS!!!▪ Credit Card

Conclusion

Things can become complicated

This is why its important to learn how to manage

your personal finances!!!!

Thursday –Economics Day 2

Medium of Exchange / How to pay your bills

Barter System

Pure Barter System: Goods or Services exchange for other goods or services.

Medium of Exchange: an intermediary used in trade to avoid the inconveniences of a pure barter system.

Mediums of Exchange

Cash - money in the physical form of currency. (Bank Note)

Mediums of Exchange

Check : A document that orders a payment of money from a bank

account.

Mediums of Exchange

Commodity Money: money whose value comes from the commodity of which it is made.

Mediums of Exchange

Credit Card: It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.

Pros and Cons of Credit Cards