vi Explore Financial Literacy Almost every aspect of your life is affected by financial literacy in some way. Each time you earn money from a part-time job or spend money for your favorite gym shoes, you make financial decisions. How easy is this? Each chapter section teaches financial literacy concepts. After learning a concept, you immediately apply it. • You Do the Math activities walk you through math examples, so you learn by doing. • Check Your Understanding questions help you assess content you have covered before moving on to the next concept. How does this apply to me? Throughout this text, features highlight how financial literacy can impact your life. • Being Financially Responsible asks if you are prepared to create a financial plan and look ahead to your future. • Dollars and Sense features share common-sense information about how to use your money wisely. What about a challenge? Learning about finance raises new challenges for you to tackle. Opportunities are presented for you to apply what you learn about how to manage your money. • Internet Research enables you to practice your research skills while learning about important financial literacy concepts. • Hands-on Give It a Go activities provide an opportunity to apply what you have learned. M ot be reproduced or posted to a publicly accessible website. Number of uses Total fees to use card $6.00 You Do the Math | 4-2 A local retail store charges a $1.25 service fee for each debit card purchase. How much will you pay for service fees if you shop at this store seven times in one month and pay with your debit card each time? Service fee Number of uses Total fees to use card As with checking accounts, your bank may provide overdraft protection. This service may prevent embarrassment at having your purchase declined. However, like overdraft protection for checking accounts, you will pay a fee for having this safeguard. Once again, the best way to avoid these charges is to keep accurate records. Check Your Understanding When does money leave your checking account when a purchase is made with a debit card? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ ______________ _______________________________________________________________ Being Financially Responsible Buying a Car: A Checklist Getting a loan for your first car may be your first installment loan, and it will affect your credit rating. Treat the process with respect. Make sure the loan is one you can afford. If this is your first loan, you may be required to have a cosigner. How would you rate your “car personality”? Yes No _____ _____ 1. I will look for dependability in a car instead of a new or sporty car. _____ _____ 2. I will make sure I can make the payments before getting a loan. _____ _____ 3. I will do all the calculations on the cost of borrowing money to make sure I am getting the deal that works best for me. _____ _____ 4. I will have a cosigner available sign with me for if needed. _____ _____ 5. I will shop around for the best interest rates for a car loan. _____ _____ I will practice completing an application a loan so I am prepared when I apply.lp _____ _____ 7. I will calculate the cost of insurance before buying a car. _____ 8. I will calculate the costs of car maintenance buying a car. _____ _____ 9. I will calculate the cost of gas before buying a car. _____ 10. I will read the contract for the loan make sure I understand each point. LO 9-3 Renting a Living Spacebe Housing will play a major part in your financial plan. As a young person, you will probably rent your first living space rather than purchase a home. It is very exciting to be out on your own and rent your first apartment. Many people 30 to 35 percent of their paychecks on housing. F YtoImay _____ _____ 3. I wil l do al getting th e deal tha t works be for me. _____ _____ 4. I will have a cosigner available to sign with me for the loa n, if needed. ____ _____ _____ _____ _____ _____ _____ ____ __ __ ____ ____ ____ ___ 5 5 5 5. 5. 5. 5. 5. 5 5. _ 56. _ 5 I I il I wil I wil I wil I wil I wil I wil I wil I wil wil w l h l h l sho l sho l sho l sho l sho l sho l sho l sho l sho l sho o p aro p aro p aro p aro p aro p aro p aro p aro p a p a p p d f d f und f und f und f und f und f und f und f und f und und th th or th or th or th or th or th or th or th or th b bes e bes e bes e bes e bes e bes e bes e bes e bes e be e b i i t int int t int t int t int t int t int t int t i t i t erest erest erest erest erest erest erest erest ere re t t rate ate rate rate rate rate rate rate for s for s for s for s for s for s for s for s for s s a ca a ca a ca a ca a ca a cathelIloan, a ca a ca a a l a r loa r loa r loa r loa r loa r loa r loa r loa o o n n n n n. n. n. n _ _ _ _ __ _____ _____ 6 6 6. I ilr I il I wil l l l pra i ti e ctice mp comp l tig l tin letin an li li appli ti tio catio fforfa for n for l lo lo so an so I m I am p ep prep d ed ared hen hen when I I I app l ly. ______ _ _ _ __ _____ _____ 7. I will calculate the cost of insura nce before buying a car. _ _ _ _ __ _____ _____ 8. I will cal culate the costs of car maintenance before buying a car. ______ _ _ _ __ _____ _____ 9. I will calculate the cost of gas beforeandOncebefore buying a c ar. _ _ _ _ __ _____ _____ 10. I will read th e contract for the loan and make su re I understand each point. LO 9-3 LO LO 9 -3 -3 Renting a Living Space Housing will play a major part in your financial plan. As a young person, ng space rather than pt urchase a home. It is ent M M M M Many people sspend s sp sp pend s 30 to 3 3 3 35 35 pe 3 rcent of their p p pa aych p ec F Y I Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. Give It a Go 5. _________________________________________stto Dollars and Sense Renting Your First Placelong Even though it now seems a time away, before you know it, you will be renting your first apartment. You rent an apartment because you are going college in another town. Maybe you have landed your first job and now you are ready to live on your own. In either case, renting your first place will be fun. You should do a lot of planning to prepare for your first apartment. The first thing you need to do is to create a budget. You created a budget in Chapter 3. It will be a good idea to create an “apartment budget” to guide you in what you can afford. You will list your fixed and variable expenses. Then, you will determine how much money you have each month for apartment rent. This will take some time. Start working on your budget before you are ready to start looking for an apartment. Remember that renting an apartment involves paying for utilities, renters insurance, and other expenses that you have not had before. Make sure you do your homework and know exactly how much money you will need. your budget has been prepared, the apartment hunt can begin! After you have decided how much you can afford each month, the next important factor will location. You will want to find a place that is close to school or work. The price must fit within your budget. After you select a location, you can use the Internet and other resources to find places available for rent. Select four or five possible apartments and set up appointments to look at them. You may have a roommate. If so, it is important that you agree on a place that you both like. You may need to look at several apartments to find one you want to rent. Then you will need to fill out an application. The property owner will probably check your credit and ability to make monthly payments. Then, you will hear whether your application to rent has been accepted. Read carefully and make sure you understand the lease before you sign it. y y y Chapter 11 Retirement and Estate Planning: Lo g Internet Research Retirement Planning for Teens 1. Using the Internet, research retirement planning for teens . Find and read at least two articles about retirement planning for teens. 2. List the title and complete source information for each article. Use an additional sheet of paper if needed. Article 1: _____________________________________________________________________________________________________ _____________________________________________________________________________________________________ Article 2: _____________________________________________________________________________________________________ _____________________________________________________________________________________________________ 3. On a separate sheet of paper, write a paragraph or bulleted list that summarizes the information contained in the articles about retirement planning for teens.teens. LO 11-2 Social Securityand Social Security will be a part of your financial plan and retirement. As you in Chapter 2, Social Security a social insurance program run by the US government. It provides benefits for retired workers, disabled individuals, and other qualified persons. It is funded by taxes paid by workers and begin contributing to the Social Security program by paying when you begin working at most jobs, even part-time. Your employer amount of taxes you pay. h u retire you may be able to collect Social Security benefits. The d d on how long you worked as ___ Article 2: ____ ______________________________________________________________________________________ ____ ____ ____ __ _____ _____ ____ _____ _____ ____ _____ _____ _____ _____ _____ ____ _____ _____ ____ _____ _____ _________ _____ _____ _____ ___ __________ _____ ___ _____ _____ ___________________________________Your _____ _____ _____ _____ _____ _____ _____ _____ _____ _Wisely _____ _____ __ __ 3 O 3. O n a s n a s ara epara te sh te sh et of eet o f papr pap wite er, w rite a pa a par agrap agrap h or h or b ll bulle bulle d l ted l ted l that ist t ist t summarizes hat s ummar izes h the inform the i f mi nform ation ation conta ined in the articles about retirement pl annin g for LO 11-2 LO LO 1 1 - 2 2 Social Security Social Sec urity will be a part of yis our financial plan and retirem ent. As you llearned le learn ed in Chapter 2, Socia l Security is a social insurance pr ogram run by the U U US government. It provides ben efits for retired workers, disabled individuals, aemployers. a and o qualified persons. It is funded by taxes paid by workers and their etaxesthertheYou e emplo yers. You begin contributing to the Social Security program by patheir ying tmatches t taxes when you begin working a t mos t job s, even part-time. Your employer Chapter 3 Budgeting: Using Money 47 Give It a Go Give It a Go Tracking Your Income Review your income from last month record the amounts in this chart. Write categories for your income in the Source column and each amount in the Amount column. Total the Amount column. Monthly Income Name: For the month of: Source Amount Total Income $ LO 3-3 LO 3-3 Expenses dy to estimate expenses.