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Let's Talk About Money

Overview

This lesson is an overview of the behaviors and skills needed to become financially independent. The lesson complements the LifeSmarts video Managing Your Money. Students may complete a vocabulary sheet as they listen to the video and view the PowerPoint Presentation 10 Things You Need to Know About Money Before You Leave Home. The lesson also introduces the concept of risk management and provides a worksheet to help students choose and justify an appropriate risk management strategy for common real-life scenarios.

 

Lesson Objective(s)

  • Understand and explain financial literacy content vocabulary.
  • Examine some of the skills and behaviors needed for financial independence.

Let’s Talk About Money Pre-Quiz

Managing Your Money Video for LifeSmarts by ConsumerMan Herb Weisbaum

Let’s Talk About Money Game

FAQs

1. Why is it so important to Pay Yourself First?

When you are new at managing your money, even thinking about saving is difficult. However, PYF is a habit and what experts know is that there will always be reasons not to save. The amount you put away is not as important as establishing the priority of saving. Putting aside money for things you need and want should always be part of a financial plan.

2. How do retailers promote impulse buying?

There are so many ways to encourage shoppers to pick up one more thing. Here are a few of the best:
• BOGO – buy one get one free or buy one, get one half off
• Color coordinated displays – blue tanks and sweaters together; workout pants and hoodies side-by-side
• Samples – providing a taste leads to increased sales in grocery aisles
• “Strike zone” – impossible to ignore merchandise displays such as a wall of breakfast cereal or soft drinks
• Essentials in the back – place the most common items consumers purchase on the perimeters of the store, thereby forcing the customer to walk in and through a greater area of the store

3. Do I really need a budget?

Yes, managing money takes skill and is a process. A budget is a tool. Every successful business tracks cash flow and has a written financial plan, yet some people still believe they don’t need a plan. A budget can show spending patterns, encourage saving, help you prepare for emergencies, and prevent overspending.

4. I don’t use credit very often, why should I check my credit report?

Most teenagers under 18 do not have a credit history, but once you have applied for a loan or rented an apartment, you begin creating a credit history. You should check your credit report on a regular basis to make sure that it is accurate and that no one else has used your identity to open accounts in your name. A good credit score is worth protecting. It can reduce the cost of loans and automobile insurance, and even help you get a job.

5. My bank offers overdraft protection for my checking account. Do I want or need this service?

Overdraft protection is a personal choice. If you accept this service, you are paying a fee for the bank to loan you money for a short time. If you write a check or use your debit card to buy something and you do not have enough in your account to cover the purchase, the bank will provide the funds and charge a fee (usually between $25-$35 per transaction). This prevents your check from bouncing and your debit card from being denied. If you reject the service, your debit card will be refused or checks written for funds not in your account will be returned marked NSF (non-sufficient funds). Only you can determine if the overdraft protection is worth the cost. Perhaps a better question to ask yourself is, “Can I manage a checking account and debit card responsibly, knowing what I can afford to spend and what my account balance is?”

Let’s Talk About Money Post-Quiz