BEHAVIORAL ECONOMICS
Strong __________ translate to trusting one’s gut or following the inner voice, which can
give the person the resourcefulness to overcome a sudden money crunch.
Inner Values
What is a budget?
a plan for your money.
An account designed to give you easy access to your money.
Checking Account
The first step in car purchasing is?
Setting a budget
What is gross pay?
The total amount you earn during a pay period before any taxes, deductions, or withholdings are subtracted
Habits and cultural preferences we learn early from our families and other social
relationships influence later money habits.
Social Values
Pay Yourself First.
you put money in your savings account before anything
else.
An account you can keep your extra funds separate from the money in your checking account that’s needed for day-to-day living expenses.
Savings Account
How do you use jumper cables?
Move the two cars close enough so that the cables can stretch from the battery of your
car to the battery of the booster car, but the cars are not touching.
Turn off all unnecessary lights, radios, charger cords, etc. in both cars.
Attach the clamps of the jumper cables in this order.
1. Attach one clamp of a cable to the positive (+) post of your battery. The
positive post is the red colored one.
2. Attach the other end of the same cable to the positive (+) post of the booster
battery
3. Take the other cable and attach one clap to the negative (-) post of the
booster battery. The negative post is the black one
4. Attach the end of that cable to a solid metal part of your engine, away from
the battery
Start the engine of the booster car and let it run for a few minutes
Turn the key to start your engine. Once it starts, leave the jumper cables on and let both
cars idle for a few more minutes.
Carefully remove the cables in the reverse order that you attached them.
What is net pay?
The amount of money you actually receive from your paycheck after all taxes, deductions, and withholdings have been subtracted from your gross pay
Strong __________ might translate to overspending on material possessions if left
unchecked, but physical values also show up in our desire for quality. This person is
willing to spend more for craftsmanship and design.
Physical Values
You are going to give each dollar a job or purpose.
Zero Based Budget
A type of savings account that usually offers a significantly higher interest rate than a traditional savings account.
High Yields Savings
1st step when you have a flat tire on the road?
Pull over
What are some pre- and post-tax deductions?
pre tax- healthcare, 401(k), retirement plans, and everything else that employers can take from the initial salary.
Post tax- employee-elected benefits and contributions. Roth 401(k) or Roth IRA contributions, garnishments for child support, unpaid taxes, or creditor judgments
Those with strong ___________ likely think more about the sustainability of their money
and generally have more in reserve.
financial values
50/30/20 budget
50% needs
30% wants
20% savings
What is the difference between a debit, credit, and prepaid credit cards?
Debit is tied to your checking account can't spend more than you have.
Credit cards allow users to borrow funds for purchases and charge interest if balances are not paid in full.
Prepaid credit cards are payment cards that allow users to make purchases, withdraw cash, and pay bills without using credit.
What pattern do you use to tighten your tire after you replace it?
Star
What are the different options you have after high school?
1. College/ University
2. Vocational, trade or technical school
3. Entering the workforce
4. Joining the military
What is a systematic error in thinking that occurs when people are processing and
interpreting information in the world around them and affects the decisions and judgments that
they make….
cognitive bias
allowance money, chore commissions,
paychecks from a part-time or summer job,
gift cards, birthday money,
different types of Income sources.
Fill out a check for a purchase you made at Kroger for $28.98 on September 15, 2027
Yes, that's right!!
Doing a quick ______________ of your vehicle is pretty easy and can help prepare you for
future issues that may arise.
monthly check-up
What are some retirement options?
401k
Roth IRA
503b
social security