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Personal Finance

Personal Finance . Intro 12 Principles True False review - discuss. Unit 2: Budget: Make the Most of Your Money. Part 1: Income A. Cash Flow (in / out) i . Income ii. Deductions Taxes -Federal Income Tax -State Income Tax -Federal Insurance Contributions Act (FICA)

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Personal Finance

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  1. Personal Finance • Intro • 12 Principles • True False review - discuss

  2. Unit 2: Budget: Make the Most of Your Money • Part 1: Income A. Cash Flow (in / out) i. Income ii. Deductions • Taxes -Federal Income Tax -State Income Tax -Federal Insurance Contributions Act (FICA) - Social Security and Medicare

  3. b. Gross Income- c. Net Income- Other Payroll Deductions? – brainstorm Gross Income minus….. Federal / State/ City Income Tax FICA Life Ins Credit Union Savings STRS 403B Health Vision Dental Union Dues = $1100/per pay = Net Income

  4. Part 2: Expenses After you know your net income- now the hard part… Dave Ramsey video Ch 7 part 1 A. Fixed B. Variable C. Periodic *pitfall = variable and periodic *common advice- • Start- $1000 cash • Finish- have 3-6 months salary on hand for emergencies • PYF Review Exercise 2C

  5. Monthly Expenses Fixed: brainstorm • College Savings • Car Ins • Car • Home Security • Mortgage • Home Ins / Tax • Home Equity Loan • Furniture Loan • Savings • =$2000 / month

  6. Variable: - brainstorm • Natural Gas • Electric • Water Sewer • Phone (home/cell) • TV/Internet • Gasoline • Babysitter • Church/Charity • =700/month • Deductions + Fixed + Variable = $3800/month

  7. Unit 3: Make money work for you :Savings: The time value of money • A=P (1 + i)n • Compount Interest “the most powerful force in the universe” • Rule of 72 • Review Unit 3 answers • Average Savings Rates • Japan 13%, Germany 12%, UK 7%, • France 15%, Canada 7%, US…..? • -0.6% • Dave Ramsey Ch 1

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