"Costs of Various Forms of Credit"
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.