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Costs of Various Forms of Credit

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					 How to Earn It,
    Save It,
 Make It Grow




  Teacher’s Guide:
Using Money Matters
      to Meet
TEKS/TAKS Standards
      Teacher’s Guide: Using Money Matters to
            meet TEKS/TAKS standards

    Use “You’ll Wonder Where Your      Business Education
       Paycheck Went” (pages 4-5)
        to give students practice in   The student demonstrates an understanding of personal
 calculating gross pay, withholding    financial management. The student is expected to:
for federal tax, and Social Security
               and Medicare taxes.
                                       compute gross pay
        Page 4 provides a detailed
example that students can follow;      compute employee-paid withholdings
    page 5 gives students practice
       in calculating the gross pay,   compute net pay
withholdings, and net pay for a job
    that they find advertised in the
                Houston Chronicle.

  “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.




                                       Business Education
       “Bank on a Budget” (pages
    8-9) shows students a sample
   budget and provides space and       The student researches consumer and employee issues and
       suggestions for students to     discusses financial implications for the individual. The student
        develop their own budgets.     is expected to:

        Page 9 gives students the      prepare and maintain a personal budget
    opportunity to “comparatively
  shop” by using a sample ad and
                                       demonstrate purchasing decisions through comparative shopping
  by looking through actual ads in
           the Houston Chronicle.
                                       analyze investment growth and develop a personal investment plan




                                                         2
      Teacher’s Guide: Using Money Matters to
            meet TEKS/TAKS standards

  “Cash or Credit?” (pages 10-11)     Business Education
    gives an example of a student
whose credit rating was destroyed     The student identifies the rights and responsibilities of consumer
  because she didn’t consider the     credit. The student is expected to:
problems that could develop if she
     used her credit card unwisely.   project the effect of poor credit on a consumer’s credit
                                      worthiness by examining credit reports
   The bottom of page 10 (“Credit
Card Tips”) takes students through    list and explain the qualifications and procedures needed
 the terminology they should know     to obtain credit
and the questions they should ask
  as they consider credit cards for   identify problems involving personal use of credit cards
                        the future.
                                      compare costs of various forms of credit
 Page 11 helps students consider
      the services banks provide,     determine the bank that offers the best credit card contract
    as well as the fees that some
                    banks charge.




                                      Business Education
       Students are asked to use
         mathematical operations      The student follows established mathematical processes to solve
  throughout the student guide as     business problems. The student is expected to:
 they determine salary, costs, etc.
                                      calculate answers to problems using addition, subtraction,
                                      multiplication, division, percentages, and decimals




                                                    3
     Teacher’s Guide: Using Money Matters to
           meet TEKS/TAKS standards

                                                        Technology
    Page 12, “Your Checking Account,” provides
    practice in properly filling out checks and in       The student complies with the laws and examines the issues regarding the use
  using a check register to record expenditures,        of technology in society. The student is expected to:
income, and the current balance in the account.
                                                        identify the impact of technology applications on society through research,
Page 13, “Debit Cards,” explains the difference         interviews, and personal observation
between credit and debit cards. Advantages of
 using a debit card are provided, as well as tips       demonstrate knowledge of the relevancy of technology to future careers,
                         on using it responsibly.       life-long learning, and daily living for individuals of all ages

     Page 14, “Paying Bills Online, explains how        The student describes the intended and unintended effects of technological
      the Internet and personal computers have          solutions. The student is expected to:
 revolutionized the way that people use banking
 services and introduces students to the way in         describe how technology has affected individuals, societies, cultures,
      which they will likely pay bills in the future.   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
                                                        Economics
          overview of common investment choices,
                                                        The student understands the basic concepts of consumer economics.
                as well as the risks and rewards of
                                                        The student is expected to:
                          each type of investment.
                                                        analyze the factors involved in the process of acquiring consumer goods and
        The Rule of 72 (explained in the box in the
                                                        services including credit, interest, and insurance
    middle of the page) is a great way for students
    to calculate the number of years it will take for
                                                        compare different means by which savings can be invested and the risks and
    various investments to double at various rates
                                                        rewards each poses to the consumer
                                          of return.
                                                        analyze the economic impact of investing in the stock and bond markets
       “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.

       “Check Your Knowledge,” page 19, provides
        activities to help students review what they
                       have learned from this guide.



                                                                 4
                                  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 deci-
mal 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
                               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
                                  Money Matters
                               Homework Assignment

   Name:____________________________________
Use this page with pages 14-15 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
      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.

				
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