5
To the Student
Give It a Go gives you an opportunity for
a hands-on activity to apply what you have
learned.
Check Your Understanding provides
self-assessment activities to make
sure you understand the topic before
progressing to the next section.
You Do the Math problems
demonstrate financial concepts
with an opportunity for you to
apply the math you have learned.
Being Financially Responsible asks if you
are prepared to create a financial plan and
look ahead to your future.
Being
Financially Responsible
Give
It a Go
Check
Your Understanding
As you progress through the material, it is important to assess what you have learned.
Self-assessment will help you identify financial concepts that need more attention so that
you will have a clearer understanding of each.
Chapter summaries provide an overview so that
you may gain a reinforcement of chapter content.
End-of-chapter activities, including a
Math Skill Builder, enable you to review
what you have learned in the chapter.
Chapter
Summaries
274
Chapter Review
Summary
As you get older, there may be many opportunities for investing to
become fi nancially independent. Remember that you need to diversify and
start saving early. You may choose to own rental property or own own
business. Buying a franchise may be a good way to open a business. Financial
independence is having enough money for your basic needs and modest
wants without having to work. To reach the point where you can live on
your investments, start preparing now while you are young. Be fi nancially
responsible and be ethical in your dealings with others. You might choose to
make gifts or contributions to a church, library, museum, or charity. Money
you donate to a qualifi ed charity is often tax deductible. You may also want to
donate your time and use your talents to aid a charity or other organization.
Review
Your Knowledge
Circle the correct answer for each of the following.
1. Property purchased with the idea of allowing persons to use it in return
for payment is called
A. a franchise.
B. a gift.
C. a contribution.
D. rental real estate.
2. A person who owns a business is called a(n)
A. entrepreneur.
B. socially responsible person.
C. contributor.
D. renter.
3. An amount given to a charity is called a(n)
A. entitlement.
B. talent.
C. contribution.
D. franchise fee.
Byour
uild Your Vocabulary
For each word or term, write the correct defi nition using your own words.
7. Franchise
8. Franchise fee
9. Ethics
10. Financial i ndependence
11. Tax d eductible
12. Talent
Apply
Your Math Skills
Calculate the answers to the following problems.
13. You have an offi ce space that you want to rent. Your mortgage payment is
$367.50 per month. Insurance is $27.60 each month. This month you had to
repair the air conditioning for $88.95 and a damaged door for $37.20. How
much will your monthly expenses be for the property? If these are typical
expenses each month, how much will you have to charge for monthly rent
if you want to make a $150 profi t each month?
End-of-Chapter
Activities
1. Make an appointment with your school counselor. Find out what
scholarships, grants, or other funding may be available to you.
2. Enter the information in the table below so that you can use it as a guide
for applying for funding. Add additional opportunities that you fi nd
that are not listed in this table.
Funding Sponsors Amount Available Application Deadline
Work-study programs
Scholarships
Grants
Financial aid
Student loans
Other
Give
It a
Go
Funding
Being ResponsibleFinancially
Budgeting
A Checklist
Do you ever wonder where your money goes? Do you get to the end of the week and
fi nd that you no longer have any money to spend? It is important to keep track of
money you have and what you spend to be fi nancially responsible.
Yes No
_____ _____ 1. Did I spend my weekly budget on needs?
_____ _____ 2. Did I spend my weekly budget on wants?
_____ _____ 3. Did I have money left over this week to put in savings?
_____ _____ 4. Did I write down everything that I spent money on?
_____ _____ 5. Did I resist buying something that I really didn’t need?
_____ _____ 6. Did I run out of money this week?
_____ _____ 7. Did I have to borrow money to make it through the
week?
_____ _____ 8. Did I learn anything this week about my spending and
savings habits?
_____ _____ 9. Did I buy something this week that I regret?
______ ______ 10. Was there something I really wanted to buy this week
that I did not have enough money to buy?
Check
Your
Understanding
How do contributions to a Roth IRA differ from contributions to a traditional IRA?
Example 2-1
A local fast-food establishment offers summer employment paying $7.95 per
hour. If you work 23 hours in one week, how much will you earn? (Always
round off to the nearest cent.)
Hourly wage $7.95
Number of hours worked × 23
Gross pay $182.85
You
do the Math 2-1
You work 17.5 hours in a week. If your wage is $8.85 per hour, what is
your gross pay for the week?
Hourly wage _________
Number of hours worked _________
Gross pay _________
You
Do the Math