Shut up and take my money!!!
What are three (3) qualities of a " Valuable" item
•The item is needed to survive
•The item is rare
•Other people want the item
•The item helps you achieve a goal
•The item makes life easier
What Makes Something “Money”
Any item that is considered a medium of economic exchange in which prices and values are expressed
What is a "Budget"
A written record of planned monthly incomes and expenses
How often should you adjust your budget
Every month
What are the three (3) main reasons for saving money
•Save for / establish an “Emergency Fund”
•Enable you to make LARGE purchases
•Begin to acquire wealth / wealth building tools
What are three (3) purposes of money
•Acquire things we need
•Pay debts
•Prove our worth / superiority
•Retain / store value for future use
What is " The barter System"
The barter system is an ancient method of directly exchanging goods and services for other goods and services, without using money, relying on mutual needs to find a trade partner
When budgeting, in what order should you pay your bills
1.When budgeting, your priorities should be
•Food
•Shelter
•Transportation
•Utilities
•Clothes
•Luxuries
Identify three (3) common unexpected expenses that often bust the budgets of the unprepared
•Medical bills •Utility rate hikes
•Broken appliances •Broken cars
•Children’s school trips
•Dead beat roommate / Roommate’s drama
•Dead beat roommate / Roommate’s drama
•Reduction of work / Loss of Job
This fund is intended to be only used when life "goes sideways"
What is an "Emergency Fund"
What are three (3) things that were used as money by our ancestors?
* Shiny Rocks
* Food
* Salt
*Shells
* Animal skins
What are three (3) things Mr. Moody barters with his students in order to get the them to behave in the manner he desires
* Mints
* Chocolate
* Click-its
* Driving Simulator Time
This simple budgeting system is easy to adapt, does not require specialized tools, and enables you to visualize the size of your expenses
The Envelope System
Identify three (3) ways to prevent running out of money
•Limit spending •Ride share
•Buy store brand •Get a side / extra job
•Shop at discount clothes stores
•Eat at home instead of take /eating out
•Live with family longer than you would like
•ROOMMATES!
What are three (3) typical reasons most people consider it "OK" to use your money for your emergency fund?
* Medical emergency
* Broken house
* Broken transportation
* Job loss
* Family emergency
What are three (3) "qualities" of money
•Durable: •Portable:
•Divisible: Uniform in size (Fungibility):
•Limited Supply (Scarcity):
•General Acceptability: Widely recognized and trusted as payment.
Stable of Value:
List and explain three (3) reasons many people view the barter system as superior to the U.S.’s fiat-money based system
•Forces people to be on good terms with their neighbors and encouraged community building
•Only goods that are needed are produced creating, ideally, less waste
•Allows the community to conserve their money for special needs or circumstances
That are two (2) reasons that a well formed monthly budget is ADJUSTABLE
•Plans for emergencies
•Makes money management feel less like punishment
•Can easily be altered when your financial situation changes
What are two (2) expenses that most people forget to account for when they create a budget
* Taxes * Car maintenance
* Insurance * Bail Money
* Retirement
* Vacations
* Emergencies
What general rule should be followed when determining how much money you need in your emergency fund
Your fund should be able to cover 3-6 months of your projected expenses without you needing to add additional income
Name three (3) major types of money
•Fiat money – the paper notes and coins issued / backed by a government.
•Commodity money – a good that has an agreed value.
•Fiduciary money – money that takes its value from a trust or promise of payment.
List and explain three (3) reasons why the barter system would not serve most people well in the modern world
•You starve when no one wants your product or service
•Hard to break your service into small pieces so equitable trades can be difficult to arrange
•Hard to “store value” when wealth is tied to physical goods, many of which are perishable (like food), making saving for the future problematic
•Without money, there's no common measure / currency to determine fair exchange rates (e.g., how many chickens for a cow), leading to endless negotiation.
•Managing complex networks of trade (like in a government or large society) becomes incredibly complicated
When you first start budgeting, what are two (2) reasons is it important to know how EVERY dollar is going to be spent before you start spending money?
•Forces you to acknowledge where you are spending your money
•Helps you identify unneeded spending
•Helps you make a “workable and realistic” plan for your budget
What is the difference between a financial emergency and a financial inconvenience?
Emergency: Your life will not operate smoothly until this problem is addressed
inconvenience: Your life will not operate comfortably until this problem is addressed
Once you have chosen to create an emergency fund account, what are two (2) types of accounts that you can RESPONSABLY create that will protect your money while also leaving it accessible?
•Savings account
•Money Market account