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GRADES 9 12 Student Workbook COMPARING CAREERS COMPENSATION AND CREDIT Course Concepts budgeting credit borrowing money applying for jobs investing

3C This book belongs to N TABLE OF CONTENTS EV SA E R M G PL R E EE Unit 1 Money Management 3 Part One The Ins and Outs of Budgeting Part Two The Importance of Saving Unit 2 Applying for Jobs 16 Part One Benefits of Working Part Two The Job Search Part Three The Hiring Process Part Four Understanding Your Paycheck Unit 3 Borrowing Money 38 Part One What Are Credit Cards Part Two Common Loan Options Part Three Impact of Credit CU Practice Additional Activities 52 Glossary 61 Copyright 2022 Reseda Group LLC Ever Green 3C LLC Licensee 2

3C N Unit 1 Money Management EV SA E R M G PL R E EE Part 1 The Ins and Outs of Budgeting 3

UNIT ONE MONEY MANAGEMENT Why Budget 3C A good budget1 is the foundation of any successful financial plan Simply put it s a tool that should be used to manage incoming and outgoing money As you get older and start to make more money it s of the utmost importance that you save spend and share your money responsibly so you can afford the things you need and want Something that many people don t think about ahead of time is that as you make more money you tend to spend more money and take on additional responsibilities Therefore smart money management is key to being financially stable Budgeting isn t about what you can t have it s about what you can have if you plan for it EV SA E R M G PL R E EE N 1 budget A plan for how a person saves spends and shares their money Who Budgets Everyone can benefit from a budget Once you get the hang of it a budget is a tool that will make managing money easier and allow you to feel more in control of your finances Government agencies schools municipalities and individual people even millionaires can all benefit from employing a budget when they make financial decisions How to Budget Budgeting doesn t have to be complicated When broken down into a simple formula it is just income2 minus expenses3 A more detailed budget will be slightly more difficult to put together and manage but it will also help you keep better track of your money Like most things in life when it comes to budgeting people are rarely great right off that bat Budgeting takes practice and work but overtime it will become second nature and you might even grow to enjoy it 2 income Money received in exchange for work 3 expense Money paid out for things a person needs or wants 4

PART ONE THE INS AND OUTS OF BUDGETING Budget Breakdown 3C Step 1 Income Add up your regular income during a set period of time This might include money received as part of your allowance or a part time job anything that you can rely on regularly should be added up You want to avoid including money that you receive for a birthday or holiday because those occasions only happen once a year Think of that money as a bonus EV SA E R M G PL R E EE N Step 2 Expenses Account for all outgoing money during a set period of time it should be the same period of time that you use when tracking income This will probably take a little more work to track but it s important that you are accurate with how much money you spend Anticipating how much you ll spend in the future can be difficult but to get an idea look at your spending logs from the past few weeks or months As you re going through your previous spending logs separate expenses into two categories variable expenses4 and fixed expenses5 4 variable expense Costs that change over time and can fluctuate depending on a number of factors like usage of the product or service Examples Gas groceries eating out entertainment clothes utility bills etc 5 fixed expense Costs that remain the same over time Examples Phone bill streaming service car payment music subscription etc Step 3 Evaluate Once you have your total income added up and your total expenses calculated for a set period of time subtract your expenses from your income There are generally three potential outcomes 1 Positive Congrats you have money left over This is the ideal scenario It means that you are living within your means and you should consider putting the extra money in a savings account for future wants and needs 2 Negative Unfortunately you spent more money than you made in the given period You definitely want to adjust your spending habits and cut back on some of the extra amenities like going out with friends 3 Breakeven You spend exactly what you make each month Some people refer to this as living paycheck to paycheck It s not the worst outcome but you have some work to do If you are spending exactly what you make each month you will have nothing to show for it in the future 5

UNIT ONE MONEY MANAGEMENT Examples Water food shelter etc N 6 need Something that is required to live a healthy life 3C Step 4 Adjust Depending on your outcome in the previous step you may want to adjust your spending going forward To do this look over all your expenses from the previous period and determine what is a need6 and what is a want7 Prioritize your needs and wants to make cuts in spending where you can Usually the variable expenses are the easiest to cut back on but evaluate your options and once you decide what to cut back on stick to it EV SA E R M G PL R E EE 7 want Something that makes life more fun or easier but isn t required to remain healthy Examples Video games smartphone candy etc Step 5 Monitor Continuously monitoring your budget is key to long term success Your budget will change regularly so remaining flexible while monitoring and adjusting your budget will definitely pay off 6

PART ONE THE INS AND OUTS OF BUDGETING Directions Review the spending log and answer the questions below 3C Jamal is creating a budget with the goal of saving 15 per week so he can buy a new phone He works a part time job in the mall Last week he made 115 Date Description Income 8 14 Paycheck 115 00 8 15 Roasters Coffee 8 15 Style Outfitters 8 15 Gas Station 8 20 Music Subscription Expenses EV SA E R M G PL R E EE N 4 63 67 24 24 97 9 99 1 Look at each description and determine if you think each expense is a need or a want Needs Wants 2 Look at each description and determine if you think each expense is fixed or variable Fixed Variable 3 If Jamal had no other expenses this week how much would he be left with to save 4 How could Jamal adjust his spending to reach his goal of 15 a week in savings 7

UNIT ONE MONEY MANAGEMENT Directions Review the spending log and answer the questions below 3C Erika is creating a budget because she has trouble keeping track of where her money goes each week Last week she made 75 at her regular babysitting job Date Description Income 8 14 Paycheck 75 00 8 16 Flowerville Theater 8 17 Electronic Warehouse 8 18 Gas Station 8 20 Streaming Service Expenses EV SA E R M G PL R E EE N 15 00 34 62 16 79 12 99 1 Look at each description and determine if you think each expense is a need or a want Needs Wants 2 Look at each description and determine if you think each expense is fixed or variable Fixed Variable 3 If Erika had no other expenses this week how much would she be left with to save 4 How could Erika adjust her spending to reach his goal of 15 a week in savings 8

PART ONE THE INS AND OUTS OF BUDGETING Directions Review your own spending from the past week and fill in the budget for yourself and then answer the questions below Description Income Expenses EV SA E R M G PL R E EE N 3C Date 1 Do you currently keep track of your spending If so how a Save receipts b Written log c Check account balance d Other 2 What is something you would like to save for 3 Which expenses do you consider needs and which do you consider wants Needs Wants 4 Which expenses are fixed and which are variable Fixed Variable 5 Would you like to have more money to put into savings 9

3C N Unit 1 Money Management EV SA E R M G PL R E EE Part 2 The Importance of Saving 10

PART TWO THE IMPORTANCE OF SAVING Why Save 3C Saving is an incredibly important habit to form There are so many reasons to save but the most basic reason to save is to be able to afford things that you need and want Some people are natural savers and others must have more discipline to save their money Having a reason to save or a savings goal can help you become more successful at saving It can also be helpful to set up personal savings rules to keep you on track to meeting your savings goals Short Term vs Long Term N Examples of Reasons to Save Emergencies future education travel smartphone computer vehicle etc EV SA E R M G PL R E EE Short term goals are typically smaller goals that can be achieved within a year Short term savings goals can be a great way to develop a savings habit Being able to achieve short term savings goals can feel very rewarding and create motivation to reach your next goal Long term goals are goals that are reached after a year or more These are usually big goals that may take time and persistence to obtain Breaking down long term goals into smaller bite sized chunks will help build momentum in meeting these large goals Long term savings goals such as saving for an emergency or saving for school will help you limit that amount of debt you may have in the future Savings Accounts Did you know there are different types of savings accounts Savings accounts come with different benefits that can be helpful in achieving your different savings goals Traditional Savings These are accounts where you earn a small amount of dividends on the money you save Usually you can have multiple savings accounts which can be helpful to keep track of different savings goals Certificates These are accounts where money is held for a certain time frame They usually earn higher dividend8 rates and have a minimum requirement amount to open Certificates can range from six months to five years and usually require at least 50 to start Insured Money Management Account or IMMA These are a type of savings account where you earn high dividend rates Usually there is a minimum balance requirement There are also limits on the amount of withdrawals monthly An IMMA is a great place to store an emergency fund because the money will earn great dividends while it is growing but is available to withdraw in case of an emergency Health Savings Account or HSA These are savings accounts where money is saved to pay for medical or health expenses Often times these accounts can have high yield savings accounts within them such as certificates or IMMA There are special tax preferences with these accounts 8 dividend Money paid regularly at a certain rate to an individual for keeping funds in a savings account 11

UNIT ONE MONEY MANAGEMENT Investment Accounts 3C Investment accounts are another way to meet your savings goals and can be a great tool in reaching your long term goals The types of accounts you may have will change and vary on your own personal financial situation When you are ready to invest meet with a financial advisor and start the right investment accounts for your long term goals Standard Brokerage Account A non retirement investment accounts that could be made up of stocks mutual funds or bonds Any money that is made from dividends on these accounts are taxed EV SA E R M G PL R E EE N Stocks Investments in a single company Bonds Loans with fixed return rates the investor is the creditor Mutual Funds Collections of stocks bonds and other assets that are bought and sold through a company that manages the portfolio Individual Retirement Account or IRA A retirement savings account outside of retirement plans offered by employers There are a few different types of Individual Retirement Accounts but all give individuals tax advantages These accounts also have certain regulations such as how much can be contributed and when the funds9 can be withdrawn Traditional IRA Account owners can deduct contributions10 from taxes in the year they were made but the funds will be taxed when withdrawing in retirement Roth IRA Account owner doesn t deduct contributions from taxes but funds are tax free with withdrawing in retirement 401k A retirement account offered by employers Some companies will match contributions made by employees at a certain rate Simplified Employee Pension or SEP A retirement account for individuals who are self employed or own a small business They function much like a Traditional IRA but have higher limits on contributions Educational Savings A savings accounts where money is saved specifically for education expenses and have some tax benefits 9 funds Sum of money that has been saved and grows for a particular purpose 10 contributions Payments into accounts with specific purposes usually set up to reoccur 12

PART TWO THE IMPORTANCE OF SAVING How to Save with SMART Goals Taking the time to sit down and plan out how you are going to accomplish your goals can be the difference between actually reaching them or not Creating a SMART goal will give you control over your goal planning Pay Yourself First 3C SPECIFIC MEASURABLE ATTAINABLE REALISTIC TIMELY EV SA E R M G PL R E EE N Many people have great intentions of saving when they receive their paychecks A lot of times people pay their bills and other obligations and then try to save the money they have leftover Often there is not much leftover or it ends up getting spent instead of saved Changing your mindset and making sure that paying yourself first or putting money into savings before paying anything else will make your savings plans more successful Make savings as important as making sure all bills are paid Creating Your Own Savings Rules Using that pay yourself first mindset you can start to create some savings rules for your personal situation Creating savings rules will help you reach your goals These rules will be guidelines on how you will plan to save anytime you receive money This could be income from a job or it could be money that you receive unexpectedly Below are some examples of savings rules Aim to set aside 10 of each paycheck or designate a certain amount like 50 each time you get a paycheck When you receive unexpected money birthday holiday etc put half of it in savings and use the rest on what you want Only use savings for emergencies or things that help you achieve your goals Saving and Investing Money for Long Term Saving for the long term is all about setting your future self up for success Invest in your future by saving today Have an Emergency Fund An emergency fund is an essential part of a good budget It s there for when a financial emergency undoubtedly happens A financial emergency is any unexpected expense that if not handled appropriately could have major consequences Whether it s a flat tire an unexpected medical bill or something else beyond your control financial emergencies are a reality in life that can throw a wrench in your well budgeted plans Start your emergency fund today You will thank yourself later when an unexpected expense happens Establishing your emergency fund while you are in high school will set you up for success when you graduate and transition into education or working Having money set aside will make that transition into adulthood less stressful As you get older and take on more responsibilities the size of a potential financial emergency will increase but for now set a goal to save 100 for emergencies and commit to not touching it unless absolutely necessary 13

UNIT ONE MONEY MANAGEMENT Directions Use the SMART goals chart to create your own short term and long term savings goals Then create your own savings rule s to help you reach your goals Goal Money Needed Month Year Deadline Start Date Months to Save Prom 250 xx 20xx xx xx 12 20 84 Put money in savings biweekly Spring Break 1 000 xx 20xx xx xx 20 weeks 50 per week Autotransfer 100 biweekly Ways to Reach Goals EV SA E R M G PL R E EE N 3C Per Month Savings Create a list of your personal savings rule Example Saving 10 of each paycheck from my part time job 1 2 3 14

PART TWO THE IMPORTANCE OF SAVING Directions Rank the list of needs and wants in order of importance 1 being the most important and 10 being the least important Answer reflection questions after you rank the list of needs and wants Rank Need or Want 3C Video Game System Tennis Shoes Car EV SA E R M G PL R E EE N Class Ring Educational Savings Smartphone Monthly Entertainment Subscription Winter Jacket Spring Break Trip Laptop 1 What item did you mark as most important and why 2 What item did you mark least important and why 3 What item s did you struggle to rank and why 4 Name one need and one want that was not listed that are important to you 15

3C N Unit 2 Applying for Jobs EV SA E R M G PL R E EE Part 1 Benefits of Working 16

PART ONE BENEFITS OF WORKING Gain Financial Independence 3C Money doesn t grow on trees You ve definitely heard that phrase more than once in your life it s something that adults tend to tell kids when they ask for a new toy or special treat As you ve gotten older you ve probably determined that people receive money in exchange for work and as we covered in the budgeting section that money received in exchange for work is known as income While money is usually the biggest motivator for teens to work there are many other ways that a job can benefit both yourself and your community N As discussed the first step in creating a budget is to have income Regular income can also be referred to as a paycheck When a person has a paycheck coming in regularly they are able to take steps toward becoming financially independent so they can afford the things they need and want to provide a happy and healthy life for themselves and their dependents11 EV SA E R M G PL R E EE 11 dependents People that rely on you for their basic needs like food water and shelter Explore Long Term Career Options Another benefit of work is learning more about what you enjoy and don t enjoy doing Consider getting a job or internship in a field that interests you For example if you enjoy working with animals maybe you would apply for a job at a veterinarian s office or zoo If you think you might be interested in the medical field apply for a job at a doctor s office Gaining relevant experience will help you determine what is the correct career path for you Provide a Sense of Belonging Think about groups that you are in or have been a part of like school clubs or sports teams Did you bond with the other individuals that were involved Being a part of a team and working toward a common goal provides people with a sense of belonging and enables them to feel like they are part of something bigger than themselves Develop Basic Skills Learning basic skills such as filling out a job application creating a resume interviewing and working with others will help you down the road especially when it comes time to apply for your dream job whatever that might be Every opportunity and experience in life is a stepping stone to help you reach your goals Benefit the Local Community Last but certainly not least working helps to benefit the community in which you live and choose to work No matter what line of work it is you have the opportunity to make a positive impact on the lives of your neighbors family and friends Subsequently when you spend the money you make at other local establishments you help to keep them in business and you stimulate your local economy12 12 economy The way in which goods and services are made sold and used in a country or area 17

UNIT TWO APPLYING FOR JOBS N What is a typical day like at your job 3C Directions Interview an adult that holds a career you may be interested in Ask them the following questions and record their answers EV SA E R M G PL R E EE What type of work environment does this job provide What days and hours do you work What was your educational path to reach this career What is your favorite part about your job What is your least favorite part about your job 18

PART ONE BENEFITS OF WORKING Directions Interview an adult that holds a career you may be interested in Ask them the following questions and record their answers N 3C What is a typical day like at your job EV SA E R M G PL R E EE What type of work environment does this job provide What days and hours do you work What was your educational path to reach this career What is your favorite part about your job What is your least favorite part about your job 19

3C N Unit 2 Applying for Jobs EV SA E R M G PL R E EE Part 2 The Job Search 20

PART TWO THE JOB SEARCH Where to Look 3C Searching for a new job can be intimidating Where do you begin What should you look for How do you apply once you find a job you re interested in These are all valid questions especially if you ve never been through the job search process before But don t worry we ve compiled information and resources to help walk you through the process Starting the job search is difficult Utilize the below resources to help make things more manageable Online EV SA E R M G PL R E EE N One way to start your job search is on the internet If you have an idea of where you want to work you can go to that company s website and browse open positions On the other hand if you don t know what you d like to do there are tons of job sites that compile opportunities in your area If that seems overwhelming add filters such as position title or the industry that you re interested in to narrow down the results People You Know Tap all the resources available to you including personal connections Talk with family members friends your school counselor or other individuals in your life to see if they have any leads It is possible they know of specific businesses that are hiring or have suggestions of where to look that you hadn t thought of on your own Take the Initiative Consider reaching out to businesses that you want to work at and express your interest Be sure to provide a resume and mention why you would be a good fit for a position at their company 21

UNIT TWO APPLYING FOR JOBS Things to Consider Schedule and Environment 3C Pay is one of the biggest factors that people consider when they are searching for a new job However there are other factors that can have a big impact on your professional and personal life Benefits N Think about when and where you want to work Would you prefer to work during normal business hours Do you like working weekends Are early mornings or late nights more your speed Would you like to sit in an office Do you prefer to work outside These are all questions that you should keep in mind as you re searching for a job Of course you can t always get exactly what you want so you may have to compromise in some areas Keep an open mind gather all the facts and make the best decision for your situation EV SA E R M G PL R E EE Benefits are sometimes offered in addition to pay to make one employer more competitive than another Paid Time Off Paid time off refers to time off for holidays vacation sick leave or volunteering among others Insurance Insurance includes medical and sometimes vision and dental Retirement Retirement savings plans can be a huge benefit to your long term savings goals Types of retirement options may vary depending on the employer Some common options are 401 k A 401 k is a savings plan that allows employees to contribute to retirement savings directly from their earned wages with the opportunity for their employer to match the employee s contribution The employee also has the option to invest their funds to help savings grow Pension A pension is a savings plan that allows an employee to add money to a fund that also includes contributions by the employer How much an employee receives at retirement is determined by the length of their working years and the annual income they earned leading up to their retirement Education Assistance Education assistance refers to funding of classes to further your education or provide additional benefit to your professional career Fun Fact If two people put the same amount of money away each year 5 000 earn the same return on their investments six percent annually and stop saving upon retirement at the same age 67 one will end up with nearly twice as much money just by starting at 22 instead of 32 In other words The investor who started saving 10 years earlier would have about 500 000 more at retirement Resource nytimes com guides business saving money for retirement 22

PART TWO THE JOB SEARCH Directions Draw a line to match the term on the left to the correct definition on the right Refers to time off for holidays vacation sick leave or volunteering among others Paid Time Off A type of savings plan where an employee adds money to a fund that includes contributions by the employer How much an employee receives at retirement is determined by length of working years and the annual income they earned leading up to their retirement EV SA E R M G PL R E EE N 3C Insurance 401 k Refers to funding of classes to further your education or provide additional benefit to your professional career Pension A savings plan that allows employees to contribute to retirement savings directly from their earned wages with the opportunity for their employer to match the employee s contribution The employee also has the option to invest their funds to help savings grow Education Assistance Includes medical and sometimes vision and dental 23

UNIT TWO APPLYING FOR JOBS Directions Research three jobs that interest you and fill in the table below There is an example provided for you High School or equivalent preferred Potential Pay 24 Potential Hours 3C Front Desk Receptionist Self directed structured Ability to multitask Organizational skills Excellent verbal skills Detail task oriented Punctual Education Needed 12 00 hr N Skills Needed EV SA E R M G PL R E EE Type of Job Day Shift Monday Friday Night Shift Weekends

3C N Unit 2 Applying for Jobs EV SA E R M G PL R E EE Part 3 The Hiring Process 25

UNIT TWO APPLYING FOR JOBS Once you ve found a job or multiple that you re interested in what s the next step How do you give a potential employer the opportunity to hire you Tips for Filling Out a Job Application N 3C The hiring process is often comprised of an application resume interview or a combination of these That s because when you work for a company you become a representation of their brand so companies want to make sure that you re the right fit for their open position Step one is filling out an application Filling out a job application is something that you ll probably do multiple times in your life It s usually the first action step when pursuing a job that you re interested in Job applications can be lengthy and require you to input sensitive information but it s important that you fill them out accurately and to the best of your ability EV SA E R M G PL R E EE Read the entire application and follow instructions Don t leave any sections blank if something doesn t apply to you write N A If filling out a paper application use blue or black ink If filling out a paper application write legibly Use proper grammar and correct spelling Parts of an Application General Information The information collected in this section is used to get in contact with you and determine your eligibility for the position 26 Full name Date of birth Address Phone number Include the best phone number to reach you ensure that your voicemail is set up and that you have a professional greeting Email address Ensure your email address is professional and includes your name ex jennifer smith mail com Social Security number or SSN A SSN is a nine digit number that is issued to every U S citizen Your SSN is unique to you and it s linked to your employment record so it s important that you only give it out when the situation makes sense like when you re applying for a new job Have you been convicted of a felony Are you eligible to work in the U S If you re under 18 do you have an employment certificate If you need an employment certificate check with your school s main office Position Desired salary pay Ensure this is a reasonable number based on the position description Depending on your previous experience and qualifications this number may be negotiable Start date If you are currently employed be sure to select a start date at least two weeks out so that you can give your current employer proper notice of your departure Availability Consider what commitments you currently have like after school clubs or sports Full time part time Full time typically means working 40 hours in a week Part time means working less than 40 hours in a week

PART THREE THE HIRING PROCESS Employment History EV SA E R M G PL R E EE N 3C This section is used to gauge your work experiences that are relevant to the desired position and provide contact information for your previous employment supervisors Previous employer s Be sure to list all of your recent employment history Start with your most recent employer and work your way backward Job title Previous supervisors Contact information Your potential employer may ask to contact your current or previous employer s Dates of employment Reason for leaving Be honest but not negative Talking badly about a previous employer is a red flag for potential employers Salary pay Education and Experience Employment History This section helps a potential employer understand your qualifications and non work experience relevant to the desired position School s attended Start with your most recent school and work your way backward Graduation dates If you haven t graduated yet put your estimated graduation date Skills and qualifications Extracurricular activities Honor societies References This section allows you to list people you know that can speak to your work ethic and character These should be people that you have interacted with in a professional setting not friends or family members Make sure you check with each individual to make sure they are okay with being a reference for you Name Phone number Email address Relationship 27

UNIT TWO APPLYING FOR JOBS Directions Read and fill out the application below as you would if you were applying for a new job If you ve completed the activities from pages 18 19 pretend you are filling out an application for one of the jobs you researched 3C Employment Application Applicant Information Date Email Address City EV SA E R M G PL R E EE Phone N Full Name Date Available Social Security Number State ZIP Desired Pay Position Applied for Have you ever worked for this company before If yes when Yes No Are you a citizen of the United States Yes No Have you ever been convicted of a felony Any unsettled lawsuits judgments or disputes If yes explain Yes No Education High School References Name Company Relationship Phone Previous Employment Company Address Phone Job Title Starting Pay Ending Pay Supervisor Responsibilities Reason for Leaving Starting Date May we contact your previous supervisor for a reference 28 Ending Date

PART THREE THE HIRING PROCESS Building a Resume 3C Your resume is another important part of the hiring process that is usually turned in when you submit your application Your resume often contains similar information to what is requested on the job application however the resume allows you to expand on your skills and experiences to help set yourself apart from other applicants Resumes look different depending on the person that it belongs to and what type of job they re applying for but if this is your first resume break it down into five sections EV SA E R M G PL R E EE N Contact Information Include your full name email address phone number and mailing address Be sure that your email is professional and your voicemail is set up and ready to accept messages Objective Briefly state your employment goal Experience This section details your work history Be sure to list your current and previous employers starting with the most recent and working your way backward Provide the name of the company your title dates of employment and your duties and responsibilities especially if they are applicable to the job you are applying for If you don t have employment experience include volunteer work that you ve done or groups you ve been a part of Education List the schools you ve attended dates of attendance and education level completed If you are currently in school list where at your expected graduation date and what degree you are working toward Skills List skills or special talents that make you the right person for the job JANE STUDENT 123 Main St Central MI 12345 517 555 5555 jane student email com OBJECTIVE Obtain employment where I can utilize my customer service skills E X P E R IE N C E JUNE 2019 PRESENT SALES ASSOCIATE FASHION OUTFITTERS Engage with customers and provide exceptional customer service Build client relationships and anticipate client needs Use multi tasking abilities while tending to customer and company needs Meet personal and team sales goals JANUARY 2019 JUNE 2019 CASHIER FRESH FOOD GROCERS Balance cash draw Stock shelves and maintain inventory Solve customer complaints E D U C A T IO N CENTRAL HIGH SCHOOL Expected graduation June 2021 GPA 3 75 4 0 National Honors Society S K IL L S Strong Customer Service Skills Excellent Communication Skills Conflict Management Skills Ability to Learn Quickly Ability to Work as Part of a Team Ability to Problem Solve V O L U N T E E R E X P E R IE N C E FOOD PANTRY Organize and inventory incoming donation Coordinate pick up and drop off appointments 29

UNIT TWO APPLYING FOR JOBS EV SA E R M G PL R E EE Objective N Contact information 3C Directions Brainstorm what skills qualifications education and experience you would include on your resume and write down your answers in the appropriate section Experience Education Skills 30

PART THREE THE HIRING PROCESS Preparing for an Interview 3C If you have the opportunity to interview it means you re one step closer to a job offer During the interview you ll sit down with your potential employer and answer questions related to your experience and the potential job How you answer the questions is important but the interviewer is also paying attention to how you present yourself and interact with others Interviews can be intimidating but preparing and practicing will help you be successful Dressing the Part EV SA E R M G PL R E EE N What you choose to wear to a job interview may vary depending on the industry but no matter the job it s important to look professional and put together in order to make the best first impression If you re unsure of what to wear consider a nice pair of pants or skirt with a blouse or button down top Be sure your clothes are clean and fit appropriately Answering the Questions The questions that you re asked during your interview are difficult to anticipate We ve listed out a few of the common ones in the activity on page 32 but you might find it helpful to think of a few situations where you displayed exceptional skills like problem solving leadership or decision making to reference during your interview Interview Tips Make eye contact but don t overdo it Use a firm handshake but not too hard Sit up straight Bring a notebook and pen Bring extra copies of your resume and references Be polite to everyone that you come in contact with Send a thank you note or email to your interviewer 31

UNIT TWO APPLYING FOR JOBS Tell me about yourself EV SA E R M G PL R E EE N Why should we hire you 3C Directions Review each practice question below and write out how you would respond if you were in a real interview After you ve brainstormed your responses find a family member friend or classmate to practice with you Take it a step further by also practicing your handshake eye contact and the other tips provided What is your greatest strength What is your greatest weakness Tell me about a challenge you ve faced and how you overcame it Tell me about a time that you demonstrated leadership skills Tell me about a time you made a mistake and how you handled it Is there anything you d like me to know that s not included on your resume Do you have any questions for me 32

3C N Unit 2 Applying for Jobs EV SA E R M G PL R E EE Part 4 Understanding Your Paycheck 33

UNIT TWO APPLYING FOR JOBS Getting your first paycheck is exciting You ve worked hard for your own money and it s finally paying off Deductions to Anticipate 3C When you are paid your employer is required to subtract a portion of your income to pay the government for different programs and services Because of this it s important that you review your pay statement to ensure its accuracy When you do that you ll notice terms like gross pay deductions net pay and more Understanding what these terms mean how they impact you and why workers are subject to pay them will benefit you and help you be more financially aware EV SA E R M G PL R E EE Federal Income Tax N Deductions can vary depending on factors like where you live or work and how much money you make but some common types of deductions that apply to U S workers are included below Federal income tax is money collected by the federal government from working individuals in the United States Money paid in federal income tax is used to fund government programs and services that benefit citizens of the country as a whole such as expenses related to national defense education the country s infrastructure transportation and more The federal income tax is a progressive system so how much an individual pays depends on how much money they make State and Local Income Tax In addition to federal income tax many states and local municipalities also collect an income tax from individuals that live or work within their boundaries Taxes collected for state or local governments help pay for expenses that benefit the community at large such as education parks and recreation environmental projects libraries and first responders Not all states and cities have income tax and those that do vary how much income tax they collect from state to state or city to city FICA Medicare The Federal Insurance Contributions Act FICA requires a payroll tax on the wages of all employees for the Medicare program Medicare provides medical benefits for retirees the disabled and children In total the Medicare tax totals 1 45 of the employee s gross pay In addition to the 1 45 payroll tax on the employee s wages the employer is required to match the contribution by paying 1 45 of the employee s gross pay to Medicare as well FICA Social Security The Federal Insurance Contributions Act FICA requires a payroll tax on the wages of all employees for the Social Security program Social Security provides retirement disability and survivor benefits to qualified individuals In total the Social Security tax totals 6 2 of the employee s gross pay In addition to the 6 2 payroll tax on the employee s wages the employer is required to match the contribution by paying 6 2 of the employee s gross pay to Social Security as well 34

PART FOUR UNDERSTANDING YOUR PAYCHECK Additional Terms 3C Form W 4 A tax form that an employee fills out and provides to their employer upon hiring to determine the correct amount of money to withhold from each paycheck for federal income tax Typically new employees fill out this form when they re hired by an employer but consider completing a new Form W 4 each year or as your financial situation changes to ensure accuracy Form W 2 A tax form that should be filled out annually if federal income tax is withheld from regular paychecks The form is provided to an employee by their employer and allows employees to file their annual taxes to ensure they have paid the correct amount for the year N 1099 MISC A tax form that should be filled out annually if federal income tax is not withheld from regular paychecks EV SA E R M G PL R E EE Dependent A qualifying child or qualifying relative that the taxpayer supports significantly by providing food shelter clothing etc Fun Fact The origin of the income tax on individuals is generally cited as the passage of the 16th Amendment passed by Congress on July 2 1909 and ratified February 3 1913 however its history actually goes back even further During the Civil War Congress passed the Revenue Act of 1861 which included a tax on personal incomes to help pay war expenses The tax was repealed ten years later However in 1894 Congress enacted a flat rate Federal income tax which was ruled unconstitutional the following year by the U S Supreme Court because it was a direct tax not apportioned according to the population of each state The 16th Amendment ratified in 1913 removed this objection by allowing the Federal government to tax the income of individuals without regard to the population of each state For additional information on taxation in the United States see the section on taxes on the website of the U S Department of the Treasury Resource loc gov rr business hottopic irs_history html 35

UNIT TWO APPLYING FOR JOBS Directions Read each scenario below and calculate each individual s net pay based on the information provided N Federal Income Tax 10 State Income Tax 4 25 FICA Medicare 1 45 FICA Social Security 6 2 3C 1 Sam earns 182 per week at his job help him calculate how much will be deducted for each of the following EV SA E R M G PL R E EE What is Sam s net pay after all deductions are subtracted from his earnings 2 Monica earns 413 per week at her job help her calculate how much will be deducted for each of the following Federal Income Tax 12 State Income Tax 5 FICA Medicare 1 45 FICA Social Security 6 2 What is Monica s net pay after all deductions are subtracted from her earnings 3 Randall earns 780 per week at his job help him calculate how much will be deducted for each of the following Federal Income Tax 22 State Income Tax 3 07 Local Tax 1 4 FICA Medicare 1 45 FICA Social Security 6 2 What is Randall s net pay after all deductions are subtracted from his earnings 36

PART FOUR UNDERSTANDING YOUR PAYCHECK Directions Write in the term under the correct definition 3C A summary of earnings and deductions from your earnings Even if you receive your paycheck via direct deposit your employer will still make one of these available to you EV SA E R M G PL R E EE A tax form that should be filled out annually if federal income tax is withheld from regular paychecks Payment for work performed at a job people may receive a paycheck weekly biweekly monthly or in another frequency An alternative to a paper paycheck is direct deposit into a checking or savings account N A tax form that an employee fills out and provides to their employer upon hiring to determine the correct amount of money to withhold from each paycheck for federal income tax A tax form that should be filled out annually if federal income tax is not withheld from regular paychecks Money taken out of an employee s earnings Payroll tax totaling 6 2 of the employee s gross pay that provides retirement disability and survivor benefits to qualified individuals Money paid to state or local governments to help pay for expenses that benefit the community at large such as education parks and recreation environmental projects libraries and first responders Payroll tax totaling 1 45 of the employee s gross pay that provides medical benefits for retirees the disabled and children A qualifying child or qualifying relative that the taxpayer supports significantly by providing food shelter clothing etc The amount of money you take home after all deductions are subtracted from your gross pay The amount of money you earn prior to any deductions being subtracted from your wages Money paid to fund government programs and services that benefit citizens of the country as a whole such as expenses related to national defense education the country s infrastructure transportation and more 37

3C N Unit 3 Borrowing Money EV SA E R M G PL R E EE Part 1 What are Credit Cards 38

PART ONE WHAT ARE CREDIT CARDS Benefits of Credit Cards Rewards Card 3C Credit cards are loans from a financial institution These loans are different from other loans because they are revolving Most loans come with an amount you borrow to pay for something and then you make a payment every month for the same amount of money When you apply for a credit card you are approved for a certain limit and your monthly payment is based on if you use the loan for any purchases or not Credit cards are also different because they have monthly billing cycles EV SA E R M G PL R E EE Fraud Protection N These give cardholder s rewards for using their card for certain purchases For example some reward cards will give you 3 cash back on all grocery purchases Other rewards cards may offer 1 cash back on all purchases Often times these cards have annual fees that must be paid as part of the program Credit cards offer fraud protection if someone fraudulently uses your card information to make purchases This protection makes it easy to get your money back Offers and Discounts Some credit cards will give you special offers to earn more cash or will offer an introductory interest rate of 0 Most credit cards companies will also give you discounts or protections when using ride sharing services or rental cars Not all but many credit cards will have no international services fees which means you can use your card to pay for things in other countries and will not be charged extra for doing this Accepted Nearly Everywhere Most stores will accept the use of credit cards which makes it easy to buy things This can be very helpful when traveling Credit Card Statements Credit card statements13 are calculated every month and contain details about when where and for what amount purchases were made They also have the total balance of money that has been borrowed or used for the credit card limit and the minimum payment14 amount due Credit card statements also give more indepth information about the account like the interest rate information on how long it may take to pay off and details what happens when a payment is late 13 credit card statement A statement sent each month that shows balances minimum payment due due date interest rate previous payments and previous interest charged Credit card statements also show a detailed list of purchases that were made during the billing cycle 14 minimum payment The minimum amount required to satisfy the billing cycle In some cases this is 2 of the total balance due Different credit cards have different minimum payment rules 39

UNIT THREE BORROWING MONEY Credit Card Interest Rates 3C Credit card interest rates15 vary depending on the borrower s credit score The interest rate on a credit card may be higher than the rate on an auto loan because there is no collateral to back up a credit card so this makes them riskier Collateral is when a borrower secures a loan by providing an asset to the lender Often times collateral is in the form of a car or house If the borrower fails to make their payments for a certain period of time the lender has the option to sell the collateral and pay off what is owed to them But credit cards are the only loan that you can avoid paying interest on if you use them wisely Read the following scenario to learn how you can avoid paying interest when using a credit card EV SA E R M G PL R E EE N 15 interest rate The amount charged to the borrower to use some or all of the available credit limit Interest rate is based off an annual percentage rate APR that is determined by the credit score Interest is calculated with the following equation Decimal APR x of days in the billing cycle x average daily balance 365 finance charge Miguel is a college student who opened his first credit card He wanted to begin building his credit so someday he could qualify for a low rate on an auto loan Miguel did his research before applying for his credit card and read that he could use it wisely and avoid paying interest but still build an on time payment history Miguel decides he will only use his credit card for purchases that are already in his monthly budget Every month Miguel pays 89 for his cell phone He decides to give his cell phone provider his credit card to make his payments each month automatically Miguel then waits for his credit card statement which shows his balance is 89 and he has a minimum payment of 25 Miguel pays the full statement balance of 89 The next month the statement is the same but also shows that he was not charged any interest from the previous month s statement A few months later Miguel checks his credit report and can see his monthly on time payments on his credit card Miguel feels great that he is building his credit history and is on his way to getting the right credit score to qualify for a low interest rate on an auto loan 40

PART ONE WHAT ARE CREDIT CARDS EV SA E R M G PL R E EE N 3C Directions Use the sample credit card statement to answer the questions below 1 How many days are in this billing cycle 2 When is the due date 3 What is the amount of the minimum payment 4 What amount can be paid to avoid any interest being assessed 5 How much was paid last billing cycle 41

3C N Unit 3 Borrowing Money EV SA E R M G PL R E EE Part 2 Common Loan Options 42

PART TWO COMMON LOAN OPTIONS In this section we are exploring loans A loan is money that a person borrows from a credit union bank private company or another individual People take out loans for many different reasons throughout life some common things people borrow money for are to buy items like a car or house or pay for something of value to them like an education or a vacation Understanding the Terms 3C When a person takes out a loan there is an understanding that they will pay the money back over a set period of time An important part of taking out a loan is making sure that you can afford to pay the money back and that you are responsible enough to do so on time N When you take out a loan you agree to pay the money back at a certain frequency over a set period That period of time is referred to as the term16 EV SA E R M G PL R E EE For example if a person borrows 10 000 to buy a car and agrees to make monthly payments for five years until the car is paid back in full that means that the person will make 60 monthly payments to repay the 10 000 plus interest With each payment a portion of what you pay goes toward the amount you owe known as the principal balance17 and a portion goes toward interest18 Depending on the amount borrowed this process can take multiple years 16 term The time allotted for a borrower to pay a lender back Generally the longer the term the lower the monthly payment but the amount of interest paid is higher because it will take longer to pay the lender back 17 principal balance The amount of money borrowed As the borrower makes payments each month the principal balance will go down 18 interest Income paid to the lender for the use of their money Think of it as the rental fee for borrowing money Interest is paid in addition to the principal balance 43

UNIT THREE BORROWING MONEY The Price of Borrowing Money Credit Score 3C When a person borrows money the lender takes a risk that the borrower will not pay the lender back To help offset that risk the lender charges interest The amount of interest that a borrower pays depends on what interest rate they qualify for at the time they take out the loan A higher interest rate equates to more interest paid and a lower interest rate equates to less interest paid What interest rate a person receives depends on a few different factors EV SA E R M G PL R E EE N A credit score is a three digit number ranging from 300 850 that provides a snapshot of a person s credit history and how reliable they are when it comes to paying money back Think of this as your reputation to financial institutions and others A higher credit score equates to a more responsible borrower and potentially a lower interest rate Collateral Collateral is an item pledged as security for a loan Not all loans have collateral Examples of loans that typically have collateral are auto loans and home loans In the event that a person does not make their loan payments the lender can repossess the item that is being used as collateral sell it and pay off the remaining balance owed If a person has collateral for their loan they will typically receive a lower interest rate because the loan is less risky Term The term is the amount of time that it will take a borrower to pay a lender back Depending on the size of the loan the term could vary from one day to 30 years or even more Generally a shorter term is viewed as less risky and therefore equates to a lower interest rate 44

3C N Unit 3 Borrowing Money EV SA E R M G PL R E EE Part 3 Impact of Credit 45

UNIT THREE BORROWING MONEY Credit19 is a contractual agreement in which a borrower receives something of value now and agrees to pay the lender at a later date generally with interest assessed When it comes to credit there are two important terms to know 3C Credit Report20 A person s credit report is a detailed record of every loan that a person has taken out and how they handled the repayment of each loan A credit report is typically a full page or more of information related to the individual s financial history N Credit Score21 A person s credit score is a three digit number ranging from 300 to 850 that provides a snapshot of how likely they are to repay borrowed money Typically a higher credit score indicates a more responsible borrower and a lower credit score indicates a less responsible borrower EV SA E R M G PL R E EE 19 credit A contractual agreement in which a borrower receives something of value now and agrees to pay the lender at a later date generally with interest assessed 20 credit report A detailed record of every time a person has borrowed money 21 credit score A three digit number ranging from 300 to 850 that provides a snapshot of an individual s ability and willingness to repay borrowed money How Does Credit Impact Me Loan Application Process During the loan application process a lender will review the borrower s credit score and credit report to help make their lending decision As the lender is reviewing the credit report they look to see how the borrower has handled current and previous loan payments If the borrower regularly makes late payments this may be a red flag for the lender Additionally the lender will review the borrower s current loans and their payment amounts to determine if they can afford another payment Determine an Interest Rate The borrower s credit score impacts how much they pay in interest when taking out a loan Because lending money is risky lenders will typically charge a higher interest rate to borrowers that have a lower credit score The Hiring Process When applying for a new job a potential employer will consider your application resume and cover letter in addition to your references and performance during the interview However one thing that many people don t realize is that some employers consider credit scores during the hiring process How an individual handles their credit provides insight into their character If a company is deciding between two candidates that have similar education and career paths a positive credit score may help set one apart from the other 46

PART THREE IMPACT OF CREDIT Applying for a Rental Opening a Utility Account N 3C Generally a rent or housing payment is the largest monthly commitment for someone to take on Because it can be expensive a potential landlord may check credit to ensure that the renter is making their current payments on time and that they can afford another commitment In addition to credit a landlord might also consider Income Employment history Rental history References EV SA E R M G PL R E EE When setting up new utilities like cable or internet the utility company may review credit to determine a person s likeliness to pay bills on time If the individual does not meet the utility company s credit requirements the utility company may require a security deposit in order to activate services Shopping for Insurance Rates Insurance companies use credit to calculate an insurance score The insurance score is then used to determine a person s car insurance rates Other factors that can impact an insurance score include Age or driving experience What the insured vehicle is used for Geographic location The make and model of the vehicle What Makes Up a Credit Report Identifying Information This section will contain the name of the borrower Social Security number recent addresses date of birth recent employers etc Credit History This section will show any current or closed loans or lines of credit that the borrower has been responsible for in recent years For each credit account it will show how many on time late or missed payments the borrower has made Inquiries This section displays hard inquiries into the borrower s credit An inquiry is a record of recent times that a lender has requested a copy of a borrower s credit report Inquiries are used to calculate the new credit portion of a credit score Public Records and Collections This section contains information about additional money the borrower may owe like bankruptcies or tax liens and accounts that have been sent to a collection agency 47

UNIT THREE BORROWING MONEY What Makes Up a Credit Score There are six factors that make up a credit score Payment History 3C Payment history makes up 40 of a person s credit score One missed payment on a loan or line of credit can decrease a person s credit score by up to 100 points In order to avoid missed payments be realistic about how much you can afford to borrow and set up payment reminders or automatic payments to avoid a mistake Age and Type of Credit EV SA E R M G PL R E EE N Age and type of credit make up 21 of a person s credit score This category refers to how long a person has been using credit and their mix of revolving credit such as credit cards and installment credit such as a mortgage or an auto loan Diversify your credit portfolio by responsibly opening and maintaining different types of credit when you are able to do so Credit Utilization Credit utilization makes up 20 of a person s credit score and is a measurement of how much credit a person uses compared to how much they have access to While credit utilization does consider balances on installment loans it primarily focuses on revolving lines of credit When it comes to revolving lines of credit a good rule of thumb is to not utilize more than 30 of your total credit limit that means that if the total limit on all your credit cards is 1 000 you should keep the total amount you owe across all cards at less than 300 5 1 000 Limit 0 Balance 100 Available 75 Available Credit Card 2 1 000 Limit 500 Balance 50 Available 25 Utilized Balances Balances make up 11 of a borrower s credit score This category looks at the total balances owed on all of your credit accounts including revolving lines of credit and installment loans Carrying high balances on your credit accounts may have a negative impact on your score even if all payments are current 3 11 40 Recent Credit Recent credit makes up 5 of a borrower s overall credit score and refers to new loans or lines of credit that have been opened in recent months Multiple new accounts or hard inquiries in a short period of time can indicate increased risk and therefore may negatively impact your credit score 20 21 48 Credit Card 1 Available Credit Available credit makes up 3 of a borrower s overall credit score This category weighs the available credit on a person s revolving credit accounts

PART THREE IMPACT OF CREDIT Protecting Yourself and Your Credit 3C It s important that individuals check their credit report regularly to ensure information is reporting accurately and to monitor for indications of identity theft Federal law allows all individuals to access a copy of their own credit report every 12 months from each of the three main credit bureaus22 To learn more about accessing a copy of your credit report visit annualcreditreport com N When reviewing your credit report look for inaccurate information that doesn t belong to you or inquiries that aren t familiar to you these may be signs of identity theft23 If you think you may be a victim of identity theft contact the Federal Trade Commission FTC EV SA E R M G PL R E EE 22 credit bureau An agency that collects and distributes the credit information of borrowers There are three main credit bureaus Equifax Experian and TransUnion 23 identity theft The fraudulent use of a someone else s personal or financial information What Can You Do Having good credit vs having bad credit can mean the difference of someday buying a house or qualifying for low interest rates that will save you loads of money in the long run Below are some tips to build strong credit 1 Make payments on time 2 Keep credit card balances low 3 Limit new credit applications 4 Use needs vs wants to budget wisely 5 Check credit and report suspicious activity or inaccurate information 49

UNIT THREE BORROWING MONEY Paul has a 500 limit on his credit card He wants to buy a 150 plane ticket to Florida for Spring Break Is he within the 30 guideline EV SA E R M G PL R E EE N 1 3C Directions Revolving credit usage can impact a person s credit score It s recommended that borrowers don t utilize more than 30 of their total credit limit in order to avoid a negative impact to their credit score Review each of the scenarios below and calculate if each person is within the 30 utilization guideline 2 Janelle needs to purchase a new laptop for school The laptop she wants is 550 Janelle s credit card limit is 1 500 Is she within the 30 guideline 3 Karl currently owes 200 on his credit card He is out shopping for school and spends an additional 150 His credit card limit is 1 200 Is he within the 30 guideline 4 Gabriella is out shopping with friends She spends 150 on shoes 80 on makeup and 225 on new clothes Her credit card limit is 1 300 Is she within the 30 guideline 50

PART THREE IMPACT OF CREDIT Directions Determine if each statement is true or false Credit scores range from 200 to 750 TRUE OR FALSE 2 One missed payment on a loan can lower your credit score by 100 points TRUE OR FALSE 3 Credit might be used during the hiring process TRUE OR FALSE 4 There are four major credit bureaus TRUE OR FALSE 5 When you borrow money you don t have to pay it back TRUE OR FALSE N 3C 1 EV SA E R M G PL R E EE Directions Match each term on the left to the best description on the right Balances Diversify your credit portfolio by responsibly opening and maintaining different types of credit when you are able to do so Credit Utilization Carrying high balances on your credit accounts may have a negative impact on your score even if all payments are current Payment History Be realistic about how much you can afford to borrow and set up payment reminders or automatic payments to avoid a mistake Recent Credit Don t utilize more than 30 of your total credit limit that means if the total limit of all your credit cards is 1 000 you should keep the total amount you owe at less than 300 Available Credit The available credit on a person s revolving credit Age and Type of Credit Multiple new accounts or hard inquiries in a short period of time can indicate increased risk and therefore may negatively impact your credit score 51

EV SA E R M G PL R E EE N 3C CU PRACTICE ACTIVITIES Practice Activities 52

CU PRACTICE ACTIVITIES Unit 1 Money Management What is a financial emergency EV SA E R M G PL R E EE How do you prepare for a financial emergency N Why is preparing for a financial emergency important 3C Directions Refer to page 13 to answer the questions below Directions Review each scenario below and determine if the unexpected expense is a financial emergency Unexpected Expense Scenarios Is this a financial emergency yes or no After returning home from a road trip you notice your tire is flat Upon further inspection you find a nail in your tire You can t use public transportation because the route doesn t go near work so you have to buy a new tire All your friends are going to a concert this weekend and want you to join The band is pretty well known so tickets cost around 200 You really don t want to miss out Your dog got into the trash and has been sick all day You call the vet and they recommend bringing your dog in to be assessed You get an interview for your dream job You really want this job and decide to buy a new interview outfit Your phone has a huge crack in the screen after dropping it the other day The phone still works perfectly fine but the crack is really annoying You re considering buying a new phone 53

CU PRACTICE ACTIVITIES Unit 1 Money Management Kim s account balances 1 500 Savings Account Balance 1 000 Emergency Fund 1 000 N Checking Account Balance EV SA E R M G PL R E EE If you have Kim use funds from her checking account make sure to update the amount spent in the appropriate budgeted categories If you have Kim use her savings account or emergency fund Kim s budget does not need to be updated 3C Directions Help Kim spend wisely based on her budget below Update Kim s account balances and budget after each scenario Kim s budget Bills Groceries Entertainment Medical Expenses Budgeted 1 000 300 100 100 Spent 500 100 0 0 Scenario 1 After a long day at work Kim decides to eat some leftovers before meeting her friends She reheats leftover lasagna in the microwave but forgets to remove the aluminum foil and starts a small fire Her renter s insurance will cover most of the cost but she has to pay a 500 deductible first Kim s account balances What account s and or budget categories should Kim use to pay the deductible Checking Account Balance Savings Account Balance Emergency Fund Kim s budget Budgeted Spent 54 Bills Groceries Entertainment Medical Expenses 1 000 300 100 100 6

CU PRACTICE ACTIVITIES Unit 1 Money Management 3C Scenario 2 Kim s immediate and extended family are going on a last minute skiing trip out of state Kim hasn t seen her cousins in a really long time and decides to go Her plane ticket costs 120 She can t wait to see everyone Kim s account balances What account s and or budget categories should Kim use to pay for the plane ticket Checking Account Balance N Savings Account Balance EV SA E R M G PL R E EE Emergency Fund Kim s budget Budgeted Bills Groceries Entertainment Medical Expenses 1 000 300 100 100 Spent Scenario 3 While on the skiing trip Kim accidentally twist her ankle and can barely walk She decides to go to the emergency room for X rays She is fortunate to have health insurance through her employer and only needs to pay a 250 co pay for an emergency room visit Kim s account balances What account s and or budget categories should Kim use to pay the co pay Checking Account Balance Savings Account Balance Emergency Fund Kim s budget Budgeted Bills Groceries Entertainment Medical Expenses 1 000 300 100 100 Spent 55

CU PRACTICE ACTIVITIES Unit 1 Money Management 3C Scenario 4 After returning home from her trip Kim checks her mailbox and finds a card from her grandma It s a get well soon card and a check for 50 to spend on entertainment while Kim rests her ankle Kim s account balances What account s and or budget categories should Kim deposit the funds into Checking Account Balance N Savings Account Balance EV SA E R M G PL R E EE Emergency Fund Kim s budget Budgeted Bills Groceries Entertainment Medical Expenses 1 000 300 100 100 Spent Reflection questions Based on the final budget is Kim in a good financial situation If Kim used some of her savings what actions could she take to rebuild her savings What would you have Kim do differently What are some take aways from this activity 56 6

CU PRACTICE ACTIVITIES Unit 2 Making Money Preference 1 vs 3C Directions Consider your ideal work situation Choose between each preference listed below and circle your choice Work preferences not listed can be written in the blank boxes Preference 2 I prefer my place of work to determine deadlines for me I would prefer to live close to work I don t mind having a long commute I would prefer my employer provide education assistance It s not necessary for my employer to provide education assistance I prefer to work a flexible schedule I prefer to work a set schedule I would prefer to work for a larger company I would prefer to work for a smaller company I don t mind working weekends I would prefer to not work weekends I prefer to work over time and to receive increased pay I prefer to work a maximum of 40 hours a week I would prefer my place of work have paid vacation days and paid sick days It s not necessary for my place of work to provide paid vacation days and paid sick days I prefer my place of work to have on site amenities such as a gym or caf On site amenities such as a gym or caf are not important to me Working for a company that has volunteer opportunities is important to me Working for a company that has volunteer opportunities is not important to me I would prefer to receive raises based on performance I would prefer to receive raises based on time in position It is important that my employer provide health insurance It is not necessary that my employer provide health insurance I prefer to work with a team on projects I prefer to work on projects by myself EV SA E R M G PL R E EE N I prefer the freedom to set my own deadlines 6 57

CU PRACTICE ACTIVITIES Unit 2 Making Money EV SA E R M G PL R E EE N 3C Directions Select a job this can be one you have or one you want and write it in the circle below Next brainstorm extra expenses you might have in that position Write the expenses down as branches from the circle creating a web Examples could include business attire clothing travel expenses continued education etc 58 6

CU PRACTICE ACTIVITIES Unit 3 Borrowing Money 3C Directions Consider each scenario below and circle whether the action will negatively or positively impact your credit score EV SA E R M G PL R E EE N Scenario 1 You heard having more than one type of credit can improve your credit score Currently you only have student loans so you decide to open a new credit card You want the best interest rate and apply to several different stores Thus far you ve applied to five different stores in the past week Negative Impact or Positive Impact Scenario 2 Congrats you finally paid off all your credit cards You ve had one of the credit cards for 5 years in fact it was the first card you opened To avoid getting in debt again you decide to close all your cards Negative Impact or Positive Impact Scenario 3 You graduated from college six months ago and forgot that you had to start paying on your student loans You realize your payment is 32 days late Negative Impact or Positive Impact Scenario 4 You re interested in purchasing a new car but are worried how the auto loan will affect your credit You consider the fact that you only have two credit cards without a balance and decide to apply for an auto loan Negative Impact or Positive Impact Scenario 5 Your friends are planning a big trip to Europe before going to college You really want to go but need to figure out how you re going to pay for it Instead of using your savings you decide to charge the travel expenses to your credit card After purchasing the plane ticket your credit card has 30 of its limit available Negative Impact or Positive Impact 59

CU PRACTICE ACTIVITIES Unit 3 Borrowing Money 3C Directions Complete the credit score self assessment below EV SA E R M G PL R E EE Why did you decided on that credit score N Based on what you know about credit what do you think your credit score would be What financial habits do you practice that might positively impact your credit score What financial habits do you practice that might negatively impact your credit score What actions can you take to improve your credit score 60 6

GLOSSARY Definition 3C Vocabulary A plan for how a person saves spends and shares their money 2 income Money received in exchange for work EV SA E R M G PL R E EE N 1 budget 3 expense 4 variable expense 5 fixed expense Money paid out for things a person needs or wants Costs that change over time and can fluctuate depending on a number of factors like usage of the product or service Costs that remain the same over time 6 need Something that is required to live a healthy life 7 want Something that makes life more fun or easier but isn t required to remain healthy 8 dividend 9 funds Money paid regularly at a certain rate to an individual for keeping funds in a savings account Sum of money that has been saved and grows for a particular purpose 61

GLOSSARY Payments into accounts with specific purposes usually set up to reoccur People that rely on you for their basic needs like food water and shelter EV SA E R M G PL R E EE 11 dependents 3C 10 contributions Definition N Vocabulary 12 economy The way in which goods and services are made sold and used in a country or area 13 credit card statement A statement sent each month that shows balances minimum payment due due date interest rate previous payments and previous interest charged Credit card statements also show a detailed list of purchases that were made during the billing cycle 14 minimum payment 15 interest rate 16 term 62 The minimum amount required to satisfy the billing cycle The amount charged to the borrower for using some or all of the available credit limit Interest rate is based off an annual percentage rate APR that is determined by credit score The time allotted for a borrower to pay a lender back Generally the longer the term the lower the monthly payment but the amount of interest paid is higher because it will take longer to pay the lender back

GLOSSARY Definition 3C Vocabulary The amount of money borrowed As the borrower makes payments each month the principal balance will go down 18 interest Income paid to the lender for the use of their money Think of it as the rental fee for borrowing money EV SA E R M G PL R E EE N 17 principal balance 19 credit 20 credit report 21 credit score A contractual agreement in which a borrower receives something of value now and agrees to pay the lender at a later date generally with interest assessed A detailed record of every time a person has borrowed money A three digit number ranging from 300 to 850 that provides a snapshot of an individual s ability and willingness to repay borrowed money 22 credit bureau An agency that collects and distributes the credit information of borrowers There are three main credit bureaus Equifax Experian and TransUnion 23 identity theft The fraudulent use of someone else s personal or financial information 63

CREATED BY CREDIT UNION FINANCIAL EDUCATORS Financial Literacy Made Fun 3C Created and maintained by certified financial educators Ever Green 3C s Financial Literacy workbooks are designed to help develop the personal finance knowledge and skills that K 12 students should possess Use Ever Green 3C s resources to supplement your curriculum and help students gain the financial literacy skills they ll need to manage their financial resources effectively throughout their lives About Ever Green 3C EV SA E R M G PL R E EE N Ever Green 3C is a CUSO credit union service organization powered by Reseda Group a wholly owned CUSO of MSU Federal Credit Union We help credit unions establish better engagement loyalty and lifelong relationships with their members and communities through financial education solutions For more financial literacy solutions please visit www evergreen3c com Classroom Workbooks GRADES K 2 SAVING GRADES 3 5 CHOOSING GRADES 6 8 GRADES 9 12 SPENDING WITH INTENTION CAREERS COMPENSATION AND CREDIT 05 2022 Copyright 2022 Reseda Group LLC Ever Green 3C LLC Licensee www evergreen3c com