Warm Up April 25, 2011

1. Warm Up April 25, 2011 Students will define the following words related to personal banking: • Loan Payment • Direct Deposit • Debit Card • Expense ( 5 mins) • Teller Machine • Tax Deductible • Direct Deposit • Automatic Payment • Transfer

2. Activator Students will fill out a job application related to various jobs. They will be assigned different job titles with monthly salaries. The purpose is to help illustrate how one's education, job, and spending habits make a difference to their financial security. ( 15 mins)

3. Standard/Elements SS7E4 The student will explain personal money management choices in terms of income, spending, credit, saving, and investing.

4. Essential Question What are the personal money management choices in terms of income, spending, credit, saving, and investing? 

5. Today I will learn how to explain personal money management choices because life is all about income, spending, credit, saving, and investing.

6. Work Period • #1) You will continue to use banking concepts to learn about budgets, and expenses by defining vocabulary words related to personal bank. Use a dictionary. • #2) Students will be assigned a job/salary in order to complete the transaction register. Will be given a checklist with required transaction. ( 30 mins)

7. Game of Life

8. Directions • Get a job, discuss salary, set up budget, must pay all bills, must flip coin for any toss up decision. Example go out to dinner (H) or get fast food (T). Must balance check book after every decision. If you run out of money your done until next pay check unless, coin flip, to use credit card.

9. Jobs and Salary • 1. Teacher – $40,000 (Monthly $3,333.33) • 2. Receptionist – $25,000 (Monthly $2,083.33) • 3. Nurse – $39,000 (Monthly $3,250) • 4. Accountant – $38,100 (Monthly $3,175) • 5. Computer Programmer -- $41,600 (Monthly $3,466.66) • 6. Mechanic -- $28,100 (Monthly $2,341.66) • 7. Dishwasher – $15,675 (Monthly $1,305.83) • 8. Six Flags Worker – $16,730 (Monthly $1,394.16) • 9. Fast Food Attendant – $11,000 (Monthly $916.66) • 10. Fireman/Police officer – $40,000 (Monthly $3,333.33) • 11. Hair Stylist – $33,000 – (Monthly $2,750.00) • 12. Collecting Unemployment – $12,960 (Monthly $1080)

10. Payday • Congratulations your first pay check. Hope it’s as much as you figured. • Unfortunately it’s time to pay some bills.

11. You need to write a check for your (mortgage or rent). If you have roommates your total can be divided by the number of people. Remember to balance your checkbook. Rent Apartment: 1 Bedroom : $ 792.00 2 Bedrooms : $ 847.50 (423.75 per person) 3 Bedrooms : $ 1043.00 (347.67 per person) Mortgage (House) 4 Bedroom: $1,700.00 First Timers

12. More bills to pay. Here are your Utilities. Not to bad hopefully they won’t go up next month. Remember if you have roommates your bills get divided by the number of people. Don’t forget to balance your checkbook. Utilities (Power, Water, Trash) Power: $75.00 Water: $90.00 Trash: $25.00 Total: $190.00 Cable/Phone/Internet Bill Comcast Phone: $ 20.00 TV: $ 80.00 Internet: $ 60.00 Total: $160.00 They Just Keep on Coming

13. Now depending on how much you spend on your car will depend on your car payment. You may flip a coin to decide on your cars value or you may choose. Remember to balance your checkbook. Car Bills Car payment Car value (Interest Rate 12.5%) $5,000.00 -- $135.00 (a month for 48 months) $10,000.00 -- $270.00 (a month for 48 months) $15,000.00 -- $400.00 (a month for 48 months) $20,000.00 -- $535.00 (a month for 48 months) How's the Checking Account Looking?

14. There is still much to be done with your car. You have to have Insurance and you’re not going any where with out a tank of gas. Boys your insurance might be looking a bit different from the ladies. That’s unfortunate. Car Insurance Boys: $ 275.00 Girls: $ 200.00 Gas Allowance: Once a week (15 gallon tank) Regular: $2.65 ($39.75 to fill tank) Midgrade: $2.75 ($41.25 to fill tank) Premium: $2.95 ($44.25 to fill tank) Diesel: $2.98 ($44.70 to fill tank) And You Thought You Were Done!!!

15. Flip a coin to see if your car needs maintenance. If heads your car needs an oil change and tire rotation. If tails you got away this time but watch out for next time your luck might change. Remember to balance your checkbook after EVERY purchase. Maintenance: Oil Change: (every 3,000 to 4,000 miles) - $40.00 to $50.00 Tire Rotation (every 6,000 to 8,000 miles) - $25.00 to $35.00 New Tires (every approx 60,000 to 80,000 miles) - $300.00 to $700.00 Time for Some Car Maintenance

16. Have You Been Keeping Up With Your Spending? • Check out your checkbook and try and calculate how much money you have spent so far. • Compare with a neighbor and see if they are doing as good or better than you. • How much money do you have left?

17. You and your friends decide to grab some dinner. Flip a coin to see if you’re getting Chick-Fil-A (H) or Outback (T). Chick-Fil-A Number one with a lemonade and an ice dream. $9.75 Outback Sirloin steak with a coke. $14.00 + (20% tip) Total: $16.80 Let’s Grab Dinner

18. Time to go grocery shopping. While shopping you pick up everything you need (H) or just get the bare essentials (T). Remember if you have roommates you can divide everything by the number of people but your bill goes up. Did you balance your checkbook. Grocery Store Everything from bread to A1 sauce. $150.00 to $250.00 Just the bare essentials (bread, milk, lunch and dinner fixings) $75.00 to $100.00 Can’t Eat Out Every Night.

19. One of two options, let the coin decide, you can go buy some new clothes (H) or you can just have your old clothes dry cleaned (T). Things are adding up, better make sure your checkbook is balanced. (T) Dry Cleaners Cost 5 Shirts: $1.75 (per shirt) - $8.75 5 Pants: $4.00 (per pants) - $20.00 1 Jackets: $6.00 (per jacket) - $6.00 Total: $34.75 (H) New Clothes 3 - Shirt/blouse: $20.00 to $60.00 - $80.00 2 - Pants/Skirt: $30.00 to $120.00 - $120.00 1 - Shoes: $25.00 to $150.00 - $60.00 Total: $260.00 You Got To Be Looking Your Finest!

20. Time for a doctor’s visit to try and get rid of that cough. Jobs 1, 2, 3, 4, 5 and10 you all have insurance doctors visit $25.00. Jobs 7, 8, 9, 11, and 12 you do not have insurance doctors visit $100.00. Feeling a Little Under the Weather.

21. You decide to take that special someone out. Flip a coin to decide what you do (H) dinner at the Cheesecake Factory and a movie the AMC or (T) Make dinner and rent a movie. Don’t forget to balance your checkbook. (H) Dinner and a movie Dinner = $50.00 Movie = $22.00 Total = $72.00 (T) Cook and rent a movie Dinner = $20.00 Movie = $7.00 Total = $27.00 Date Night!

22. Let’s Get Some Cash Out… • You need to stop by the ATM to withdraw some cash. • Everyone needs to withdraw $40.00 from their bank account for the weekend. • Make sure you balance your checkbook and are using the correct codes in your transaction register.

23. Time to Check the Checking Account. • Check out your checkbook and try and calculate how much money you have spent so far. • Compare with a neighbor and see if they are doing as good or better than you. • How much money do you have left?

24. Closing Reflective Statements – Students will reflect on the issues encountered during their filling out of the application and how this would affect them in the real world. ( 10 mins)