Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend®...
-
Upload
julia-mitchell -
Category
Documents
-
view
217 -
download
0
Transcript of Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend®...
![Page 1: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/1.jpg)
Personal Personal FinanceFinance
Chapter 3Chapter 3
![Page 2: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/2.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsShare Save Spend®
• Sharing
![Page 3: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/3.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsShare Save Spend®
• Sharing• Saving
![Page 4: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/4.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsShare Save Spend®
• Sharing
• Saving
• Spending
![Page 5: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/5.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsYour Values
• Your values vary from those of others and influence your financial decisions
![Page 6: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/6.jpg)
© EMC Publishing, LLC
• What do you value?
• What do you think most Americans your age value?
• How do your values affect how you spend your money?
![Page 7: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/7.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsYour Financial Plan
• Determine your current situation.
• Identify and prioritize your goals.
• Develop a long-term plan.
• Organize your records.
• Set up a budget.
• Keep it simple.
![Page 8: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/8.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsYour Financial Plan
• Determine your income.
• Determine your expenses.
![Page 9: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/9.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsYour Financial Plan
• Identify and prioritize your goals.
Financial Goals
1. Buy new car2. Pay off student loan3. Move to bigger apartment4. Buy new shoes5. Vacation at Yellowstone6. Eat at fine restaurant
![Page 10: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/10.jpg)
© EMC Publishing, LLC
Establishing Financial HabitsYour Financial Plan
• Distinguish between short-term, medium-term, and long-term goals.
• Adjust your plan and goals over time.Short-Term Goals
1. Eat at fine restaurant2. Buy new shoes3. Move to bigger apt.
Long-Term Goals
1. Buy travel trailer2. Pay off student loan3. Save for retirement
Medium-Term Goals
1. Buy a new car2. Finish college3. Vacation at Yellowstone
![Page 11: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/11.jpg)
© EMC Publishing, LLC
Your Financial PlanSharing
• Sharing is also called charitable giving, philanthropy, and altruism.
• Sharing connects people and gives them a sense of pride.
• Research an organizationthat meets your interests.
• Volunteer now.
![Page 12: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/12.jpg)
© EMC Publishing, LLC
Your Financial PlanSharing Suggestions
• Birthdays
• Holidays
• Service-learning
![Page 13: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/13.jpg)
© EMC Publishing, LLC
• Why do people share?
• Who benefits from people sharing?
• What kinds of opportunities do you have to share in your community?
![Page 14: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/14.jpg)
© EMC Publishing, LLC
Which of the following is not one of the suggested ways to plan your finances?
A. Set up a budget.
B. Set goals.
C. Determine your income.
D. Freely spend your money.
E. Prioritize your goals.
![Page 15: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/15.jpg)
© EMC Publishing, LLC
Which of the following is not one of the suggested ways to plan your finances?
A. Set up a budget.
B. Set goals.
C. Determine your income.
D. Freely spend your money.
E. Prioritize your goals.
![Page 16: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/16.jpg)
© EMC Publishing, LLC
Your Financial PlanKeeping Records
• Organize your records.– Alphabetical
– Numerical
– Chronological
• Manage your money with acomputer-based system.
![Page 17: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/17.jpg)
© EMC Publishing, LLC
Your Financial PlanPaying Taxes
• Types of Taxes– Social Security / Medicare
– Sales
– Property
– Estate
– Income
– User fees
FICA
![Page 18: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/18.jpg)
© EMC Publishing, LLC
Your Financial PlanPaying Taxes: Forms
• Form W-4: Withholding
• Form W-2: Wage and tax statement
![Page 19: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/19.jpg)
© EMC Publishing, LLC
Your Financial PlanPaying Taxes: Forms
• Form 1040EZ
• Form 1040A
• Form 1040
• State and local
![Page 20: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/20.jpg)
© EMC Publishing, LLC
+$20,179 (Wages)+$15 (Interest)+$650 (Unemployment)−$2,000 (Student Loan)----------------
$18,844 (AGI)
Your Financial PlanCalculating Your Taxes• Adjusted gross income (AGI)
= sum of all sources of income − adjustments–Wages / business income– Interest income–Unemployment–Social Security / pensions– IRA contributions–Student loan payments
![Page 21: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/21.jpg)
© EMC Publishing, LLC
Your Financial PlanCalculating Your Taxes
• Adjusted gross income (AGI)
• Tax deductions– Itemized
• Schedule A
![Page 22: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/22.jpg)
© EMC Publishing, LLC
Your Financial PlanCalculating Your Taxes
• Adjusted gross income (AGI)
• Tax deductions– Itemized
• Schedule A
– Standard
2007 Standard Deduction (Fed)$5,350 = Single$7,850 = Head of household$10,700 = Married filing jointly$5,350 = Married filing separately
![Page 23: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/23.jpg)
© EMC Publishing, LLC
Your Financial PlanCalculating Your Taxes
• Adjusted gross income (AGI)
• Tax deductions
– Itemized
• Schedule A
– Standard
• Tax credits
![Page 24: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/24.jpg)
© EMC Publishing, LLC
Which of the following forms lists your wages and income from the previous year?
A. Form 1040
B. Form 1040EZ
C. Form 1040A
D. Form W-4
E. Form W-2
![Page 25: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/25.jpg)
© EMC Publishing, LLC
Which of the following forms lists your wages and income from the previous year?
A. Form 1040
B. Form 1040EZ
C. Form 1040A
D. Form W-4
E. Form W-2
![Page 26: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/26.jpg)
© EMC Publishing, LLC
• Why do we pay taxes?
• What type of taxes do you pay?
• What type of taxes are the most fair?
• What are some examples of tax deductions and tax credits?
![Page 27: Personal Finance Chapter 3. © EMC Publishing, LLC Establishing Financial Habits Share Save Spend® Sharing.](https://reader033.fdocuments.in/reader033/viewer/2022051401/56649dd95503460f94ace1bc/html5/thumbnails/27.jpg)
© EMC Publishing, LLC