Transcript Objective 10.01 Powerpoint

Teen Living Objective
10.01
Identify Sources of Income and
Types of Spending
Income
 Income = The amount of money
someone earns and has available to
spend
Type of Employment
 Salaried Employee = earn the same
amount of money per month, regardless
of the hours worked
 (vs. Hourly Employee = paid based upon
number of hours worked)
Net/Gross Income
 (Gross Income = The amount of income
that you start with)
 Net Income = The amount of income that
is left after taxes
Net/Gross Income
 Deductions = the amount of money
subtracted from the total pay (gross
income)
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Gross annual income = $50,000
Taxes (33%) =
16,500
Insurance =
-4,200
Net Income =
$29,300
Savings
 Savings Accounts = Keep money safe
and pays YOU interest
 (Interest works for you in a savings
account, as you make $, but it can work
against you)
Interest
 Interest = a payment in addition to the
original cost
 (i.e. a new flat screen TV costs $500.
You pay a total of $575 when making
payments for a year. The extra $75.00
you paid for the TV was the INTEREST
that you paid the store)
Payments
 Monthly Loan Payments = regular
payments toward the cost of an item plus
the interest charged
Debit Cards
 Allow a person to pay for items without
writing a check
 (the money comes directly out of their
checking account, just as a check would)
ATM
 Automatic Teller Machines = enable
customers to withdrawal certain amounts
of money from their checking accounts
 (you can access your money any time of
the day or over the weekend)
Credit Cards
 Lowest Annual Percentage Rate = the
most economical credit card has the
lowest % rate
 (the lower the rate, the less you have to
pay the bank back for borrowing money)
Credit Cards
 Grace Period = the amount of time before
a finance charge is added to what is
owed
 (you can charge a purchase on your
credit card, but if you pay the total before
the due date, you do not pay a finance
charge/interest)
Credit Card Terms