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Glencoe Managing Life Skills Chapter 14 Manage Your Finances
Chapter 14 Manage Your Finances
1
Section 14.1Everyday Financial Management
Section 14.2
Use Credit Wisely
Chapter 14
Chapter Manage Your Finances14
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
Chapter 14 Manage Your Finances
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• When you manage your finances responsibly, you think about your income, expenses, and taxes, as well as investing for your future.
Section 14.1 Everyday Financial Management
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
Chapter 14 Manage Your Finances
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Content Vocabulary Academic Vocabulary
gross paynet paydeductioninterestdebit cardreconcilecompound interestinsurance401(k) planinvest
diversifyshares
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Financial Fitness
• An essential part of becoming financially fit is to understand your paycheck and your bank accounts.
• Payment for work can be in the form of hourly wages, piecework, salary, and commission.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Financial Fitness
• Deductions will be taken from a paycheck for federal and state and local taxes, Social Security, Medicare, savings plans, and benefits.
deduction
Anything that is deducted from gross pay.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Income Taxes
• The biggest deduction is for federal income taxes.• Tax forms can be downloaded and printed from
the IRS web site.
Have you ever filed a federal income tax return?
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Bank Accounts
• Banking can be done through ATMs, checks, debit cards, automated services, by telephone, and online.
• Each month, it is important to reconcile your account, or check it for accuracy.
debit cardA card that deducts the cost of a purchase from the user’s bank account at the time of purchase.
reconcileTo compare accounts for accuracy.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Bank Accounts
• Banks pay you interest to use your money.• Interest can be earned from compound interest
and money market accounts.
interestThe fee the bank pays you for the opportunity to use your money.
compound interestInterest that is calculated on the deposits you make and on the interest you have already earned.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Prepare for the Future
• Being financially prepared is not just saving.• It also involves buying insurance, planning for
retirement, and investing for the future.
investUsing money to participate in a business enterprise that offers the possibility of profit.
insuranceFinancial protection in the case of loss or harm.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Prepare for the Future
• Investing is a long-term view of your financial picture.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
Chapter 14 Manage Your Finances
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Prepare for the Future
• Investments bring certain risks, which can be avoided by following a few rules.
• Investment options include CDs, bonds, stocks, and mutual funds.
What steps can you take now to help plan for your financial future?
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• There are different types of credit including cash loans, sales credit, and credit cards.
• Using credit has many financial advantages, but but it needs to be used wisely.
Section 14.2 Use Credit Wisely
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
Chapter 14 Manage Your Finances
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Content Vocabulary Academic Vocabulary
creditcreditorfinance chargecredit reportcredit ratingannual percentage rate (APR)
principalterms
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Understand Credit
• Be responsible when using a credit card.• Creditors expect you to pay back over a specified
period of time for the money, goods, or services you purchase now.
creditorBanks, finance companies, and stores that extend credit to consumers with the understanding that the loan will be paid back over a specified period of time.
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Understand Credit
• Types of credit include credit cards, sales credit, or cash loans.
• Credit allows you to purchase expensive items and pay for them over time.
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Understand Credit• The biggest disadvantage of credit is its potential
cost.• Become creditworthy by establishing a credit
history of paying debts in full and on time.• Typical questions for applying for credit include
your employment, housing, and financial history.
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Choosing a Credit Card
• Understand the basic features of the various credit cards before choosing one.
• Compare fees and terms of credit cards, including the annual percentage rate, the credit limit, fees, grace period, and special features.
annual percentage rate (APR)The annual rate of interest that a company charges you for using credit.
Glencoe Managing Life Skills Chapter 14 Manage Your Finances
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Use Credit Responsibly
• Set and follow rules about using credit.• Be realistic about your spending.• Save receipts to check on spending each month.• Warning signs include worry about debt, spending
more than you earn, maxing out your card limits, and using one card to pay another.
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Chapter Summary Section 14.1
• Your financial fitness is determined by your ability to understand and manage your paycheck, bank accounts, income, and expenses.
• Your income is affected by how you are paid and by the deductions that are taken out of your paycheck.
Everyday Financial Management
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Chapter Summary Section 14.1
• Managing your income is easier with bank accounts.
• Insurance is a way to protect your income and possessions.
Everyday Financial Management
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Chapter Summary Section 14.2
• Banks and other organizations often extend credit to their customers.
• There are both advantages and disadvantages to using credit.
Use Credit Wisely
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Chapter Summary Section 14.2
• It is important to choose the right card for your needs and to pay close attention to the terms and fees included in the agreement.
• Credit should be used responsibly to avoid debt, high fees, bad credit, and other financial problems.
Use Credit Wisely
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ReviewReview
Start
Do you remember the vocabulary terms from this chapter? Use the following slides to check your knowledge of the definitions.
The slides in this section include both English and Spanish terms and definitions.
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gross pay ingresos brutos The total amount you earn.
El total de los ingresos que recibes.
Show Definition
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net pay pago neto The amount of pay you receive after deductions.
El salario que recibes después de las deducciones.
Show Definition
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interest interésA fee the bank pays you for the opportunity to use your money.
Un monto que el banco te paga por la oportunidad de usar tu dinero.
Show Definition
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debit card tarjeta de débito
A card that deducts the cost of a purchase from the user’s bank account at the time of purchase.
Una tarjeta que deduce el costo de la compra de la cuenta del banco del usuario en el momento de la compra.
Show Definition
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reconcile reconciliar
Compare accounts for accuracy.
Comparar cuentas para verificar la precisión.
Show Definition
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compound interest interés compuestoInterest that is calculated on the deposits you make and on the interest you have already earned.
Interés que se calcula sobre los depósitos que haces y los intereses que has ganado.
Show Definition
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insurance seguro
Financial protection in the case of loss or harm.
Protección financiera en caso de pérdida o daños.
Show Definition
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401(k) plan 401(k)A specific type of retirement plan offered by many companies.
Un tipo específico de pensión para jubilados que varias compañías ofrecen.
Show Definition
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invest invertir
Using money to participate in a business enterprise that offers the possibility of profit.
Usar dinero para participar en una iniciativa de negocios que ofrece la posibilidad de ganancias.
Show Definition
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diversify diversificarSpread or increase variety.
Ampliar o aumentar en variedad.
Show Definition
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shares accionesIndividual units of ownership.
Unidades individuales de posesión.
Show Definition
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credit créditoMoney, goods, or services obtained now based on the promise to pay for them in the future.
Dinero, bienes o servicios obtenidos ahora, basado en la promesa de que se pagarán en el futuro.
Show Definition
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creditor acreedorBanks, finance companies, and stores that extend credit to consumers with the understanding that the loan will be paid back over a specified period of time.
Bancos, compañías financieras y tiendas que ofrecen crédito a los consumidores con el acuerdo de que el préstamo será pagado en un periodo de tiempo específico.
Show Definition
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finance charge cargo financieroInterest or an additional fee, such as a charge for a late payment.
Interés o cuota adicional, como el cargo por pago tardío.
Show Definition
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credit report informe de créditoA record of a particular consumer’s transactions and payment patterns.
Un registro de transacciones y de patrones de pago de un consumidor específico.
Show Definition
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credit rating rango crediticioAn evaluation of a consumer’s credit history.
Evaluación de la historia de crédito de un consumidor.
Show Definition
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annual percentage rate (APR)
tasa de porcentaje anual (APR)
The annual rate of interest that a company charges you for using credit.
La tasa anual de interés que una compañía cobra por préstamos.
Show Definition
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principal principalThe original loan amount borrowed.
El monto original de un préstamo.
Show Definition
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terms términosConditions. Condiciones.
Show Definition
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End of
Chapter 1 The Amazing World of Food
End OfChapter 14
