CHAPTER 20 – PERSONAL MONEY MANAGEMENT
Vocabulary – define the following: 1. Barter-negotiate the value of traded goods 2. budget-a plan for spending and saving money 3. credit card-a card you use in place of cash to buy something and pay for it later 4. debit card- card you use in place of cash to make purchases or withdrawals 5. deduction (withholdings)- an amount that your employer withholds from your earnings to pay for things such as taxes or insurance 6. deficit- when more money is spent than earned 7. Denomination- the face value of money 8. electronic fund transfers (EFT)- money transferred from one bank account without any actual money (paper or coins) changing hands 9. electronic funds- 10. encryption- code 11. endorse- approve or sign 12. federal income tax- the tax you pay the federal government on the income you earn 13. Federal Reserve- institution responsible for creating and tracking all of the country’s money 14. FICA (Federal Insurance Contributions Act) – Social Security tax 15. fixed income/expense- income that does not change month to month 16. gross income- pay before withholdings 17. income- all the money that you earn or receive 18. net income- pay after withdrawals 19. payee-the person a check is written to 20. personal Identification Number (PIN)- identification number used with a debit card 21. purchasing power- the number of goods or services that can be purchased with a unit of currency 22. standard of living- a measure of how comfortable you are based on the things you own 23. state income tax- tax determined by individual states on the income you earn 24. surplus-when more money is earned then spent 25. variable income/expense-

Activity 1:
Research the Federal Reserve System – Create a short PowerPoint to inform – I will watch them without the class. You do not have to spend a lot of time on making the presentation creative – I am simply looking for accurate information. You should include the following: * Title Slide – The Federal Reserve System by Your Name * When the Federal Reserve was organized and its purpose and a brief history of how it has served in our country * Where the different mints are located in the United States * What regulates how much money is printed * General information about what bills are currently in circulation * Tell how money goes out of circulation * Any other information you find interesting!

Web Sites to Check Out!

http://www.federalreserveeducation.org/resources/topics/games_5to8.cfm - you may want to play some of these games to increase your knowledge of our money system in the U.S.!

https://www.newyorkfed.org/publications/result.cfm?comics=1 - a good source of information in comic book form on the Federal Reserve!

Activity 2:

Choose one topic on which to write a 3-paragraph (minimum) essay.

How to Use Credit Cards Safely

How You Can Avoid Identify Theft/Computer Hacking

Why is Budgeting Important?

Activity 3

Research the history of Social Security and create an informational one-page flyer on its purpose and function in the United States.

Activity 4