Managing Your Money Ch 15 Sec 1 Pp

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Managing Your Money Ch. 15 Sec. 1 Pp. 401 -407

Managing Your Money Ch. 15 Sec. 1 Pp. 401 -407

Managing Your Money l l l Understand your income Know your expenses Understand credit

Managing Your Money l l l Understand your income Know your expenses Understand credit Make a budget: 1) savings 2) spending

Income: Knowing What You Earn l l l l Money you receive for your

Income: Knowing What You Earn l l l l Money you receive for your work Salary – same no matter the hours Commission – based on your sales Hourly – based on hours you work Fringe Benefits – extras like insurance, vacation Other Income – stock or dividends Disposable Income – after taxes

Making Financial Choices l l Based on goals and values Make a budget Fixed

Making Financial Choices l l Based on goals and values Make a budget Fixed expenses (stays same) and variable expenses (changes) Budgets give you confidence and responsibility

Questions l l l Which is an example of earned income? a. stock dividends

Questions l l l Which is an example of earned income? a. stock dividends b. paid sick leave c. wages d. inheritance

Questions l l l Stockholders receive payments from a company through which method? a.

Questions l l l Stockholders receive payments from a company through which method? a. dividends b. time deposits c. liquidity benefits d. cash

Questions l l l Which are fringe benefits provided by an employer? a. medical

Questions l l l Which are fringe benefits provided by an employer? a. medical insurance and sick leave b. gifts and inheritance c. savings account interest and dividends d. wages and salary

Questions l l l A monthly electricity bill is which kind of expense? a.

Questions l l l A monthly electricity bill is which kind of expense? a. fixed expense b. variable expense c. disposable income d. pay in full

Questions l l l How would a person plan his or her spending and

Questions l l l How would a person plan his or her spending and saving? a. using a commission for a trip to Hawaii. b. including interest from a savings account as income. c. making a budget. d. selling property in Florida.