How to Earn It, Save It, Make It Grow. Teacher s Guide: Using Money Matters to Meet TEKS/TAKS Standards

Transcription

1 How to Earn It, Save It, Make It Grow Teacher s Guide: Using Money Matters to Meet TEKS/TAKS Standards

2 Teacher s Guide: Using Money Matters to meet TEKS/TAKS standards Use You ll Wonder Where Your Paycheck Went (pages 4-5) to give students practice in calculating gross pay, withholding for federal tax, and Social Security and Medicare taxes. Page 4 provides a detailed example that students can follow; page 5 gives students practice in calculating the gross pay, withholdings, and net pay for a job that they find advertised in the Houston Chronicle. Business Education The student demonstrates an understanding of personal financial management. The student is expected to: compute gross pay compute employee-paid withholdings compute net pay Go for Your Goals! (pages 6-7) helps students understand the first step in setting up a budget. Figuring out where the money he/she now spends is going will help each student decide which expenses can be cut. Bank on a Budget (pages 8-9) shows students a sample budget and provides space and suggestions for students to develop their own budgets. Page 9 gives students the opportunity to comparatively shop by using a sample ad and by looking through actual ads in the Houston Chronicle. Business Education The student researches consumer and employee issues and discusses financial implications for the individual. The student is expected to: prepare and maintain a personal budget demonstrate purchasing decisions through comparative shopping analyze investment growth and develop a personal investment plan 2

3 Teacher s Guide: Using Money Matters to meet TEKS/TAKS standards Cash or Credit? (pages 10-11) gives an example of a student whose credit rating was destroyed because she didn t consider the problems that could develop if she used her credit card unwisely. The bottom of page 10 ( Credit Card Tips ) takes students through the terminology they should know and the questions they should ask as they consider credit cards for the future. Page 11 helps students consider the services banks provide, as well as the fees that some banks charge. Business Education The student identifies the rights and responsibilities of consumer credit. The student is expected to: project the effect of poor credit on a consumer s credit worthiness by examining credit reports list and explain the qualifications and procedures needed to obtain credit identify problems involving personal use of credit cards compare costs of various forms of credit determine the bank that offers the best credit card contract Students are asked to use mathematical operations throughout the student guide as they determine salary, costs, etc. Business Education The student follows established mathematical processes to solve business problems. The student is expected to: calculate answers to problems using addition, subtraction, multiplication, division, percentages, and decimals 3

4 Teacher s Guide: Using Money Matters to meet TEKS/TAKS standards Page 12, Your Checking Account, provides practice in properly filling out checks and in using a check register to record expenditures, income, and the current balance in the account. Page 13, Debit Cards, explains the difference between credit and debit cards. Advantages of using a debit card are provided, as well as tips on using it responsibly. Page 14, Paying Bills Online, explains how the Internet and personal computers have revolutionized the way that people use banking services and introduces students to the way in which they will likely pay bills in the future. Technology The student complies with the laws and examines the issues regarding the use of technology in society. The student is expected to: identify the impact of technology applications on society through research, interviews, and personal observation demonstrate knowledge of the relevancy of technology to future careers, life-long learning, and daily living for individuals of all ages The student describes the intended and unintended effects of technological solutions. The student is expected to: describe how technology has affected individuals, societies, cultures, economies, and environments describe change and the factors that affect the adoption or rejection of technology describe how and why technology evolves The Dollar Tree: Growing Money (pages 15-16) gives students a good overview of common investment choices, as well as the risks and rewards of each type of investment. The Rule of 72 (explained in the box in the middle of the page) is a great way for students to calculate the number of years it will take for various investments to double at various rates of return. Sticking with Stocks, (pages 17-18) gives students further information about investing in stocks and includes an exercise for students to practice purchasing and following stocks for a period of two weeks. Economics The student understands the basic concepts of consumer economics. The student is expected to: analyze the factors involved in the process of acquiring consumer goods and services including credit, interest, and insurance compare different means by which savings can be invested and the risks and rewards each poses to the consumer analyze the economic impact of investing in the stock and bond markets Check Your Knowledge, page 19, provides activities to help students review what they have learned from this guide. 4

5 Money Matters Homework Assignment Name: Use this page with page 4 of Money Matters On page 4 of Money Matters, you have examples that show you how to calculate a percent of a number. For example, you are shown how to find 7.65% of $7,000. First, change the percent to a decimal by moving the decimal point two places to the left (7.65% =.0765). Then, multiply the decimal by the number. Find an advertisement in the Houston Chronicle that promises a discount that is given as a percent. Calculate the amount you would save. Then, figure out how much you would pay for the item. Attach the advertisement below. Original Price % Discount Amount Saved Discounted Price Now, add a sales tax of 8.25% to your purchase. What will you pay for the item? Sales Tax Amount You Will Pay 5

6 Money Matters Homework Assignment Name: Use this page with page 12 of Money Matters Page 12 of Money Matters includes the Rule of 72. When you want to know how many years it will take for your money to double, divide the rate of return into 72. The answer is the number of years it will take for your money to double. Look in the Houston Chronicle for the following rates. Then calculate how long it will take for your money to double. rate number of years for money to double 2-yr. treasury bond 10-yr. treasury bond 30-yr. treasury bond 6-month CD 1-yr. CD 2-yr. CD bank savings account money market account 6

7 Money Matters Homework Assignment Name: Use this page with pages of Money Matters Question #3 on page 15 mentions that the stock market often rises or falls based on national or world news events. Individual stocks also rise or fall based on news that will affect those companies. Find articles in the Houston Chronicle that describe the following types of events: Flood/Droughts Where did it occur? When did it happen? Find the names of two (2) companies that will likely suffer directly from this event Are there any companies that will benefit from the event? Explain how the event will impact the companies. Wars/Civil Unrest Where did it occur? When did it happen? Find the names of two (2) companies that will likely suffer from this event Are there any companies that will benefit from the event? Explain how the event will impact the companies. Tax Increase/Decrease What is the change in the tax rate? Name two (2) companies that will suffer from or benefit from the change in the tax rate. 7

8 Thank You Merrill Lynch, for making financial literacy a top priority Through the generosity of Merrill Lynch, thousands of students are learning how to earn, save and grow their money.