****SS8E3 a. Explain that income is the starting point for personal financial management.

Developing a personal financial management plan is unique to every individual. Spending and saving goals should be considered in making a realistic, workable plan. Perhaps the most important factor when first developing a financial plan should be the individual’s income. Income is the money received (coming in) for labor or services, the sale of property or goods, from financial investments, or other services. Knowing monthly income allows the individual to know how much money is available to take care of expenditures (to spend). This allows the individual to maintain control of his money and helps to achieve long- and short-term financial goals.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

****SS8E3 b. Describe the reasons for and the benefits of a household budget.

​

Individuals should create household budgets and start tracking expenses as soon as they begin their first fulltime job. There are many reasons for creating a household budget. Creating a budget for spending and saving helps to monitor financial resources so that an individual does not become over-extended. A budget offers an organized way to establish short and long-term savings opportunities. By carefully monitoring the budget, an individual can adjust expenses and savings if there is a change in income or expenditures. A budget helps to compare annual income with annual expenses in order to meet financial goals. 

The benefits of creating a household budget are diverse. An individual gains increased financial freedom when in control of personal finances. A budget encourages an individual to save so that long-term financial goals can be achieved. Budgets help adapt to changes in financial circumstances, whether it be an emergency, loss of a job, or extended sickness. Budget analysis allows an individual to understand where money is spent and to identify unnecessary expenditures. 

​

​

​

​

​

​

​

​

​

​

​

****SS8E3 c. Describe the reasons for and the benefits of savings.

​

​

​

​

​

​

​

​

Savings is the portion of income not spent on current expenditures. Because a person does not know what will happen in the future, saving money should be a priority to make provisions for unexpected events or emergencies that might occur. Reasons for saving include: 

• Providing a cushion for emergencies. The sudden loss of income, unexpected medical expenses, or the breakdown of a necessary appliance can strain a budget and savings can help avoid going into debt.

• Planning for retirement. Adequate savings and/or investments often take the place of the income that you will no longer get from your job, or when you retire.

• Longer life expectancy. As a result of advances in geriatric medicine and public health, people are living longer and need additional income on which to live.

• Volatility of Social Security. Social Security should not be considered the primary source of retirement income and, therefore, savings can be used to supplement income.

• Education. Costs for private and public education rise every year and savings can provide a means to meet the increased financial demands.

• Making large, expensive purchases. Savings can assist in the purchase of items that are too costly to purchase with monthly income. Buying major appliances, purchasing an automobile, or paying for a vacation can all be paid for by saving a portion of income. 

Without savings, unexpected events can result in large financial burdens.

Benefits of saving money are diverse. Savings can provide a “financial backstop,” encourage feelings of security, and peace of mind. Benefits of saving include: 

• Provides “seed money”. Allows for higher-yielding investments in stocks, bonds, and mutual funds.

• Encourages a sense of control over life events. Saving money to live a better, more fulfilling life can be a great motivator. 

• Lowers the stress level. Financial security decreases health concerns.

• A positive example for children. Children learn strong lessons when they observe parents saving for the future.

• Wealth building. Being able to accumulate wealth provides the opportunity to multiply wealth through investments.

• The ability to pursue opportunities. Whether it is a personal dream, family travel, or a job opportunity in a foreign country, financial success through saving can make opportunities a reality.

​

****SS8E3 d. Describe the uses of debt and associated risks.

​

​

​

​

​

​

​

​

​

Debt is an amount of money borrowed by one party from another party. While we typically think of debt as a negative consequence of poor planning or circumstances beyond one’s control, debt can provide positive opportunities for individuals. Acceptable uses of debt include purchasing a home (mortgage), advancing education, starting or expanding a business, and fulfilling dreams. However, fulfilling a dream is not a license to debt-finance lavish spending without regard for the future. Debt allows for the delayed payment for goods or opportunities and usually comes with a cost, known as interest (an additional amount you pay to use borrowed money). For example, if you finance a vehicle for $20,000 with an interest rate of 3% for a 60 month period, the entire loan total would be $21,562. The interest would amount to $1,562.

Associated risks of debt include having to make payments on a loan even when you are not financially able to make the payment. Credit ratings can be adversely affected because as you borrow more, the risk to the lender increases, so you'll pay a higher interest rate on subsequent loans. Bankruptcy (a legal proceeding involving a person or business that is unable to repay outstanding debts) is a very real concern with uncontrolled debt. In certain occupations, including the military, industrial, and medical research, prolonged excessive debt will cause negative impacts that can lead to dismissal from a job. Unchecked debt can lead to stress and other health related issues, including stroke, hypertension, and mental health issues.

Identifying areas of debt is important so that it can be managed before it becomes detrimental to financial security. 

​

​

​

​

​

​

​

​

​

​

​

​

​

                          Everfi Modules for Personal Finance

​

Everfi is a great platform to reinforce personal finance. In 7th grade, you learned about Personal finance and this year you will master personal finance through what you learn in class and also through the use of Everfi. 

​

With Everfi, you will first register and then login each time to complete. 

To register for Everfi to learn about Personal Finance which is Unit 10 go to www.everfi.com/register. The Everfi class code is located in TEAMS on the Conversations page and is specific to which period I teach you. After you have registered with your class code, you will only need to login by going to https://platform.everfi.net/

​

​

Everfi is comprised of 6 modules that take you through Personal Finance. At the end of each Module, you should read the Module Reflection Questions below. 

​

                                         Module    1:    Welcome    Mayor!  Reflection Questions      
Question    1                

Think    about    something    for    which    you’d    like    to    save    your    money.    What    is    it,    and    why    did    you    choose    it?    What    do    you    think    will    be    the    most    challenging    part    about    saving    money    for    it?    
    
Question    2         

What    advice    you    would    give    a    friend    or    family    member    about    managing    their    own    money?    Do    you    follow    this    advice    yourself?    Why    or    why not?    
    
                                        Module    2:    Smart    Shopping Reflection Questions         
Question    1 

Why    is    it    important    to    do    research    prior    to    making    a    purchase?    What    resources    could    be    helpful    (or    not    helpful!)    when    making    a    spending    decision?    
    
Question    2

What    is    an    opportunity    cost?    Give    an    example.    Do    opportunity    costs    only    occur    when    people    make    spending    decisions?    Why    or    why    not?    
      
                                             Module    3:    Ways    to    Pay Reflection Questions          
Question    1

Your    friend    just    opened    their    first    credit    card.    What    advice    would    you    give    them    before    they    start    making    purchases?          

 

Question    2              

 How    can    missing    a    credit    card    or    other    loan    payment    affect    you    in    the    long-term?    
    
                                          Module    4:    Investing    in    You Reflection Questions      
Question    1             

Should    you    think    about    supply    (the    number    of    people    who    are    available    to    work    in    a    particular    career    field)    and    demand    (how    many    jobs    openings    are    available    in    the    career    field)    when    considering    your    future    career?    Why    or    why    not?    
    
Question    2              

What    are    some    things    you’d    like    to    start    doing    today    or    in    the    next    couple    years    to    prepare    for    college    or    other    training? 

           
                                     Module    5:    Growing    A    Business Reflection Questions     
Question    1  

You    speak    to    a    business    owner    that    is    taking    in    almost    $2,000    in    revenue    each    month.    The    owner    still    says    that    they’re    having    trouble    keeping    the    doors    open.    How    can    that    be    possible?    Use    the    terms    revenue,    expenses,    and    profit/loss    in    your    answer.    
    
Question    2    

Your    grandmother    tells    you    a    dollar    doesn’t    go    as    far    as    it    used    to.        She    says    the    “purchasing    power”    of    a    dollar    is    much    less    than    it    used    to    be.    Explain    what    she    means.    Try    to    use    and    explain    terms    like    inflation    and    deflation    in    your    answer.    
        
                                  Module    6:    Your    Financial    Future Reflection Questions      
Question    1 

What    are    examples    of    short-term    savings    goals?    What    are    examples    of    a    long-term    savings    goals?    Why    are    short    and    long-term    goals    important?    
    
Question    2         

Buying    insurance    and    saving    money    for    the    future    requires    someone    spend    less    in    the    present.    Why    is    this    a    hard    choice    for    many    people?    Would    it    be    hard    for    you?    

​

​

                                                                           Everfi Troubleshooting

What are the top troubleshooting tips to fix most course performance problems?
You can resolve most issues with one of these 4 steps: 
1. Switch browsers. Use Chrome or Firefox when you can instead of IE.
2. Make sure your browser is up to date by visiting: www.whatismybrowser.com (http://www.whatismybrowser.com).
3. Make sure to Clear the Cache (https://support.everfi.com/sims/helpcenter/common/layout/SelfhelpArticleView.seam?inst_name=_Everfi&article_id=2020-1480216)
4. If you seem stuck, your screen may be zoomed in too much causing you to miss a prompt or navigation button. To reset your zoom on a PC hit "control 0 (zero)" and on a Mac hit "command 0 (zero)".

Additional Troubleshooting Options:
Close all other applications and tabs (i.e. iTunes, Facebook, YouTube, etc.)
Full Screen mode: For Windows, press F11. On a Mac, click “View” from the browser’s menu and select “Full Screen”. For Chromebook, press F4.  
Ensure your course is in its own browser window, not within a frame of the school portal or email client.
Reboot the computer.
If you are on a wireless connection, try a wired connection .
Disable all popup blockers and 3rd party toolbars.
Try accessing from a different network connection (computer lab, home, town library etc.).
Try accessing at a different time of day (during your network’s off-peak internet usage hours, i.e. morning).

​

​

​

​