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CHAPTER 11 – MONEY Instructor: Wendy Crapo CHAPTER 11 – MONEY Instructor: Wendy Crapo

Used by permission of THE ACADEMY OF NURSING 2355 E. 3900 S. S. L. Used by permission of THE ACADEMY OF NURSING 2355 E. 3900 S. S. L. C. , UT 84124 801 -506 -0064

HOW MUCH IS A MILLION? Dallas Maverick’s owner Mark Cuban who is a billionaire HOW MUCH IS A MILLION? Dallas Maverick’s owner Mark Cuban who is a billionaire was fined last year for saying he wouldn’t hire the NBA’s head of officiating to manage a Dairy Queen”. He had to pay $500, 000 and work for 2 hours behind the counter in a Dairy Queen. $500, 000 to a person worth 2 billion is as much as $15 to someone making $60, 000.

Can money make you happy? • Boxing promoter Don King spent $65, ooo on Can money make you happy? • Boxing promoter Don King spent $65, ooo on 110 pairs of shoes topping Magic Johnson’s visit for shoes, spending $35, 000. Couples who won $48 million lottery: • “We had one month of good times and three years of misery. I’d trade it all for a normal life. It’s not worth it. Health and happiness are what I want. ” Lynette Nichols, recovery alcoholic and tranquilizer abuser with 3 pacemakers implanted since 1993 win. • “More bad than good has come out of it. ” Jimmy Nichols who filed for divorce several months after the big win, costing over $200, 000 on both sides. Visualize a wealthy person and share.

THE “AMERICAN DREAM” • • CHARACTERISTICS OF A SUCCESSFUL ENTREPRENEUR Independent Creative Hard working THE “AMERICAN DREAM” • • CHARACTERISTICS OF A SUCCESSFUL ENTREPRENEUR Independent Creative Hard working and organized Decision maker, leader Risk taker, positive attitude Self-confident Motivated Good listener Own your own business, call the shots, be your own boss (But ½ of all businesses fail in the first year)

STEPS TO BEING AN ENTREPRENUER 1. Self assess your interests, talents and skills 2. STEPS TO BEING AN ENTREPRENUER 1. Self assess your interests, talents and skills 2. Research as much information as you can 3. Develop a business plan • • • Will you provide a product or service? Who/what will be your target market? Will you be retail, wholesale, or manufacturing? Will you well locally, nationally, or internationally? Will you buy a company or start your own?

CHOOSING A CAREER “Work to make money to accomplish your life work. It is CHOOSING A CAREER “Work to make money to accomplish your life work. It is best if your job is your life work” TOP TEN INDUSTRIES IN UTAH WITH THE MOST NEW JOBS 2001 • • • Health Services Miscellaneous Business Services Eating Establishments Self-employed Wholesale Trade State public education Local Government Electrical Equipment manufacturing Engineering & management services 17, 180 16, 130 13, 510 12, 380 8, 800 7, 290 5, 560 5, 040 4, 820

HIGH ACCUMULATORS • It is what you accumulate, not what you spend. • Usual HIGH ACCUMULATORS • It is what you accumulate, not what you spend. • Usual defined as having a net worth of $1 million or more. • It can be attained in one generation and by many average Americans • Most millionaires do not inherit their wealth • They discipline, sacrifice and work hard define wealth

HIGH ACCUMULATORS • They live below their means • They accumulate money to build HIGH ACCUMULATORS • They live below their means • They accumulate money to build wealth • They believe financial independence is more important than displaying high social status.

HIGH CONSUMERS: • They have little or no investments • They live above their HIGH CONSUMERS: • They have little or no investments • They live above their means with considerable debt • They are lavish spenders with high consumption

WHAT IT COST TO BORROW MONEY Principal Interest Years Payment Total Interest Total Cost WHAT IT COST TO BORROW MONEY Principal Interest Years Payment Total Interest Total Cost $1, 000. 00 12% 2 $47. 07 $129. 79 $1, 000. 00 21% 2 $51. 39 $233. 21 $1. 233. 21 $5, 000. 00 12% 8 $70. 68 $1, 785. 71 $6, 785. 71 $5, 000. 00 21% 30 $87. 67 $26, 561. 28 $31, 561. 28 $150, 000. 00 7% 30 $997. 00 $209, 266. 00 $359, 266 $150, 000. 00 7% 15 $1, 348. 24 $92, 683. 00 $242, 683. 00 $350, 000. 00 7% 30 $2, 328. 56 $488, 279. 00 $838, 279. 00

HIDDEN COST OF LOW INTEREST CREDIT CARDS • Balance transfers usually change 3% on HIDDEN COST OF LOW INTEREST CREDIT CARDS • Balance transfers usually change 3% on principal • $30 late fees with no grace period (Considered late one day after due date) • If late, interest rate bumps up to 21% • $30 over balance fees • Convenience checks have transactions fees Compare credit card applications.

ADVANTAGES OF CREDIT • • • Stimulates the economy Helps us take care of ADVANTAGES OF CREDIT • • • Stimulates the economy Helps us take care of emergencies Convenient – ordering over the phone Establishes a credit rating Advance notice of sales and cask back on purchases • Easier to exchange and return items • Detailed monthly bill

DISADVANTAGES OF CREDIT • • It always costs money Risky to spend future income DISADVANTAGES OF CREDIT • • It always costs money Risky to spend future income Encourages careless buying (Needs vs wants) Facilitates over-buying which increases sacrifice that must be made eventually Often increases family conflict May lead to Bankruptcy Increases the cost of doing business

MAKING MONEY WORK FOR YOU THREE IMPORTANT ELEMENTS OF INVESTING - MONEY - TIME MAKING MONEY WORK FOR YOU THREE IMPORTANT ELEMENTS OF INVESTING - MONEY - TIME - INTEREST RATE

AMOUNT OF MONEY $50/MONTH $400/MONTH 7% 7% 33 YEARS $126, 398 $1, 010, 928 AMOUNT OF MONEY $50/MONTH $400/MONTH 7% 7% 33 YEARS $126, 398 $1, 010, 928

AMOUNT OF TIME 8 YEARS 31 YEARS AGE 25 – 33 AGE 33 – AMOUNT OF TIME 8 YEARS 31 YEARS AGE 25 – 33 AGE 33 – 65 $2, 000/YEAR $18, 000 TOTAL INVESTMENT $909, 280 $62, 000 TOTAL INVESTMENT $555, 678

INTEREST RATE SAVINGS ACCOUNT $10, 000 MUTUAL FUND $10, 000 5% 14% 20 YEARS INTEREST RATE SAVINGS ACCOUNT $10, 000 MUTUAL FUND $10, 000 5% 14% 20 YEARS $26, 533 $137, 434

COMPARE INVESTMENTS NAME ADVANTAGE DISADVANTAGES PASSBOOD ACCOUNT *Few restrictions *Unlimited withdrawals *Checking privileges *Low COMPARE INVESTMENTS NAME ADVANTAGE DISADVANTAGES PASSBOOD ACCOUNT *Few restrictions *Unlimited withdrawals *Checking privileges *Low rate of return NOW ACCOUNTS MONEY MARKET Higher interest rate than savings *High minimum deposit *% rate can drop High minimum deposit Limited # of

T-BILLS *Interest tax exempt *High minimum deposit *Easily sold STOCKS *High gains *High risk T-BILLS *Interest tax exempt *High minimum deposit *Easily sold STOCKS *High gains *High risk *Must track daily GOLD & SILVER *Holds value when others don’t *Doesn’t earn interest *Not always liquid MUTUAL FUNDS *Diversified *Professional manager *Easily sold *Risky

ARE YOU A GOOD CONSUMER? 1. 2. 3. 4. 5. 6. 7. Do you ARE YOU A GOOD CONSUMER? 1. 2. 3. 4. 5. 6. 7. Do you check your receipts to make certain Do you count your change to make certain that it is correct? Do you compare different prices and brands of the same item at more than one store, then select the best value to purchase? Do you compare the warranties of different brands when selecting a brand to purchase? If you feel you have been wronged by a business, do you complain to the business and attempt to right the wrong? Do you find yourself buying things that you had not planned to buy? Do you save money regularly?

ARE YOU A GOOD CONSUMER? 8. Do you often find yourself borrowing money from ARE YOU A GOOD CONSUMER? 8. Do you often find yourself borrowing money from parents, friends or siblings? 9. Do you keep a record of what you earn and what you spend? 10. Do you shop sales? 11. Do you read the instructions for use and care of a product and follow them? 12. Do you keep your sales receipts, warranties, and instructions? 13. Do you read the store’s return and exchange policy before making your purchase?

ARE YOU A GOOD CONSUMER? (key) Yes Yes 1. 2. 3. Yes 4. Yes ARE YOU A GOOD CONSUMER? (key) Yes Yes 1. 2. 3. Yes 4. Yes 5. NO 6. Yes 7. Do you check your receipts to make certain Do you count your change to make certain that it is correct? Do you compare different prices and brands of the same item at more than one store, then select the best value to purchase? Do you compare the warranties of different brands when selecting a brand to purchase? If you feel you have been wronged by a business, do you complain to the business and attempt to right the wrong? Do you find yourself buying things that you had not planned to buy? Do you save money regularly?

ARE YOU A GOOD CONSUMER? (key) No Yes Yes Yes 8. Do you often ARE YOU A GOOD CONSUMER? (key) No Yes Yes Yes 8. Do you often find yourself borrowing money from parents, friends or siblings? 9. Do you keep a record of what you earn and what you spend? 10. Do you shop sales? 11. Do you read the instructions for use and care of a product and follow them? 12. Do you keep your sales receipts, warranties, and instructions? 13. Do you read the store’s return and exchange policy before making your purchase?

Give yourself two points for each question you answered, as follows: 1. 2. 3. Give yourself two points for each question you answered, as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Yes Yes Yes No Yes 10 11 12 13 Yes Yes

ARE YOU A GOOD CONSUMER? • 25 -31 points *Great! Keep up the good ARE YOU A GOOD CONSUMER? • 25 -31 points *Great! Keep up the good work • 19 -25 points *Fair. You should begin to make some changes. • 14 -19 points *Not too good. Consider making some big changes. • Less than 14 *Take good notes during this unit, you’ll need them!

CONSUMER DEFINITIONS • BETTER BUSINESS BUREAU (BBB): Nonprofit organization the provides consumers with information CONSUMER DEFINITIONS • BETTER BUSINESS BUREAU (BBB): Nonprofit organization the provides consumers with information about a company’s consumer complaint record. • CONSUMER: Anyone who uses or buys goods or services. • FOOD & DRUG ADMINISTRATION (FDA): A federal agency that sets and enforces safety standards for food, drugs, and cosmetics. Tests new drugs before they are put on the market.

 • CONSUMER PRODUCT SAFETY COMMISSION: : A Federal agency the sets and enforces • CONSUMER PRODUCT SAFETY COMMISSION: : A Federal agency the sets and enforces safety standards on household appliances, toys and tools. Can prevent unsafe products from being sold and require repair or replacement of hazardous products. • FEDERAL TRADE COMMISSION (FTC): A Federal agency formed to protect against false advertising, illegal sales schemes, and unfair trade practices. • BUREAU OF CONSUMER PROTECTION: A federal agency which answer consumer questions or problems.

 • WARRANTY: A statement made by a manufacturer or seller of a product • WARRANTY: A statement made by a manufacturer or seller of a product or service concerning the responsibility of quality, characteristics, and performance of the product or service. • UNFAIR TRADE PRACTICE: Any business practice which is considered unethical or illegal. • SUPPLY: The amount of goods and services available for sale at various prices at stated times. • SECOND: A product that does not meet the standard requirements. It is sometimes labeled irregular and may contain minor flaws or imperfections.

 • SERVICE: Work such as repairs, personal grooming, house cleaning, transportation. Also professional • SERVICE: Work such as repairs, personal grooming, house cleaning, transportation. Also professional services such as doctors, lawyers, teachers, etc. • PRODUCERS: Those who provide the supply of goods and services to meet consumer demands. • MONOPOLY: A market situation where only one company produces the entire output of an industry. • NEEDS: The basic items a person must have to survive.

 • IMPULSE BUYING: Unplanned consumer purchases, usually done on the spur of the • IMPULSE BUYING: Unplanned consumer purchases, usually done on the spur of the moment- usually involving items on display or at reduced prices. • COMPARISON SHOPPING: Looking at different brands and models of the same item in various stores to compare prices, quality, features, and store services before buying. • NAME BRAND: A brand name that is widely recognized and sold in many different stores. Because of extensive advertising, the mane is associated with quality.

 • STORE BRAND: A brand owned by a particular store or chain of • STORE BRAND: A brand owned by a particular store or chain of stores. For example: Albertson’s/Janet Lee, Harmon’s/ T. V. , Smith’s/Smith’s, Thriftway/Western Family. • GENERIC BRAND: Surplus products purchased from many different manufacturer and then labeled with black & white labels. The quality varies. • FULL WARRANTY: Repair or replacement must be free, in a reasonable amount of time. • LIMITED WARRANTY: May require the consumer to pay labor fees or handling charges and shipping.

 • IMPLIED WARRANTY OF MERCHANTABILITY: The product actually is what it is called • IMPLIED WARRANTY OF MERCHANTABILITY: The product actually is what it is called and does what it’s name implies. • IMPLIED WARRANTY OF FITNESS: The product is fit for any performance or purpose promised by the seller and that there are no defects in the product at the point of sale.

CONSUMER RIGHTS & RESPONSIBILITES • RIGHT: 1. TO SAFETY: FDA & CPSC 2. TO CONSUMER RIGHTS & RESPONSIBILITES • RIGHT: 1. TO SAFETY: FDA & CPSC 2. TO BE INFORMED: Protection against false & misleading information 3. TO CHOOSE: A variety of products, competitive prices, & no monopolies 4. TO BE HEARD: Complain, BBB, Consumer Protection Agency • RESPONSIBILITY 1. TO USE PRODUCTS SAFELY: Read information, use & care booklets TO SEEK INFORMATION AND USE IT TO MAKE DECISIONS: Choose appropriately CHOOSE GOODS & SERVICES CAREFULLY: Shop a variety of places, use consumer magazines TO SPEAK UP AND LET LIKES AND DISLIKES BE KNOWN: Complaint letters & support reputable businesses 2. 3. 4.

CONSUMER FRAUD Illegal Deceptive practices according to Utah State Law • Selling an item CONSUMER FRAUD Illegal Deceptive practices according to Utah State Law • Selling an item as free when purchased in conjunction with another item and then raising the price of the other item. • Failing to provide an estimate for repairs over $25. 00. • Saying the repairs are necessary when the aren’t. • Saying the repairs have been made when they have not. • Offering a prize that is contingent upon observing a sales promotion without informing the consumer.

CONSUMER FRAUD • Selling an item as new, when it is, in fact, used. CONSUMER FRAUD • Selling an item as new, when it is, in fact, used. • Providing a substitute of an advertised consumer commodity when there was no intention to supply the original commodity. • To tell a customer that he/she has been specially selected to receive a bargain or discount when it is not true. • To tell a customer the he/she is a winner of a contest when it is not true. • Requiring a deposit from a customer unless the deposit obligates the seller from offering the items to another buyer and is accompanied by a dated receipt.

There additional laws which prohibit unfair competition among businesses: laws that prohibit selling an There additional laws which prohibit unfair competition among businesses: laws that prohibit selling an item at a price less the cost. Advertising goods they are not prepared to supply, and to prevent a seller from offering different prices to different customers. These laws were enacted to prohibit monopolies by allowing one competitor to use deceptive practices to put other competitors out of business.

LEMON LAW • Many states, including Utah, have what is known as the lemon LEMON LAW • Many states, including Utah, have what is known as the lemon law. This law provides consumers who buy a new automobile or motor home with significant defect that cannot be repaired, or is a lemon, can obtain relief, through a cash refund or replacement.

“COOLING OFF” RULE • An important law to be aware of is the “cooling “COOLING OFF” RULE • An important law to be aware of is the “cooling off” rule. This means that when a consumer buys an item at home or at a location that is not the seller’s regular place of business, the consumer has three days to cancel the purchase if the cost was $25. 00 or more. • The consumer’s opportunity to cancel for a full refund extends until midnight of the third business day following the sale. This is a rule set by the Federal Trade Commission FTC.

TELEPHONE FRAUD Here are some tips to keep in mind: • • Never give TELEPHONE FRAUD Here are some tips to keep in mind: • • Never give you credit card number over the phone. Be wary of investing with as stranger over the phone. If an offer sounds too good to be true, it probably is. Ask the solicitor for a name, address, and phone of the company for which they work. • Verify exactly what the solicitor is trying to sell you. • Be wary of unknown charities. ASK TO BE PUT ON A “DO NOT CALL” LIST.

HOME IMPROVEMENT FRAUD • • • Have a written contract. Never pay the cost HOME IMPROVEMENT FRAUD • • • Have a written contract. Never pay the cost of entire job before work is completed. (only 10 -30% to start). Never release final payment until job is competed and subs have been paid. Check all references. Verify license by calling 866 -275 -3675. Avoid door to door services, left over material deals, or “must do it now” basis.

HEALTH & NUTRITION FRAUD –Don’t be lured by promises of • weight loss • HEALTH & NUTRITION FRAUD –Don’t be lured by promises of • weight loss • years added to life • looking younger • a cure for everything.

VACATION FRAUD • Be aware of hidden costs and fees • Free trips can VACATION FRAUD • Be aware of hidden costs and fees • Free trips can end up being very costly (sign a contract) • Package deals often have limited times available and no air fare included.

Modeling Agency Rip-Offs • Think carefully about how you were approached. If in a Modeling Agency Rip-Offs • Think carefully about how you were approached. If in a busy area, then how many others were told that they also have the “look”? • If you are handed something to sign, make sure you read and understand it first. • Stay away from modeling agencies that require you to use a specific photographer • Get all promises in writing.

Modeling Agency Rip-Offs cont’d • Be wary of companies that only accept payment in Modeling Agency Rip-Offs cont’d • Be wary of companies that only accept payment in cash or by money order. This usually indicates they’re more interested in money more than your career. • Be cautious if the agency has a relationship with a specific modeling agency. • If the agency says it has placed models in specific jobs, then contact them to verify. • Check with the Better Business Bureau

Payday Loans • The borrower requests a loan for a short period of time, Payday Loans • The borrower requests a loan for a short period of time, usually one to four weeks. • “Payday loan fee” - Up to 360% interest. • If the borrower continues to have a financial problems and cannot pay the loan as promised, the interest keeps building on the debt.

Safer Options • • • Try a small loan form a credit union Ask Safer Options • • • Try a small loan form a credit union Ask for pay in advance form your employer Consider a loan from family or friends, (be sure to have the terms of the loan in writing) • Use a credit card advance • Request additional time to pay the bill from your creditors.

Sweepstake Fraud Sweepstakes Mailings must disclose: • A name and business address where the Sweepstake Fraud Sweepstakes Mailings must disclose: • A name and business address where the sponsor may be contacted. • The estimated odds if winning each prize. • The quality, estimated retail value, and nature of every prize. • A clear statement of the payment schedule for any prize.

Sweepstake Fraud cont’d Mailings are prohibited if they: • State or suggest a purchase Sweepstake Fraud cont’d Mailings are prohibited if they: • State or suggest a purchase is needed to win. • Announce an individual has won a prize, when he/she has not. • Contradict or limit the sweepstakes rules or disclosure required by law. • Imitate government seals to give the impression they have been sealed by the federal government

PYRAMID SCHEMES • They are losers (Many losers pay a few winners) • They PYRAMID SCHEMES • They are losers (Many losers pay a few winners) • They are fraudulent (Diminishing odds are not explained) • They are illegal if no product is sold

IDENTITY THEFT HELP! SOMEONE IS USING MY SOCIAL SECURITY NUMBER TO GET CREDIT IN IDENTITY THEFT HELP! SOMEONE IS USING MY SOCIAL SECURITY NUMBER TO GET CREDIT IN MY NAME SOMEONE HAS HELP! SOMEONE IS USING MY SOCIAL SECURITY NUMBER TO GET A JOB! FILED BANKRUPTCY IN MY NAME

HOW IDENTITY THEFT OCCURS • They steal wallets and purses • The steal your HOW IDENTITY THEFT OCCURS • They steal wallets and purses • The steal your mail, including credit card statements and applications • The complete a “change of address form” to divert your mail • The rummage through your trash • They pose as your landlord or employer to get your credit report • They find personal info in your home • They use personal information you share on the internet

MINIMIZE YOUR RISK continued • Before revealing personal information ask how it will be MINIMIZE YOUR RISK continued • Before revealing personal information ask how it will be used and if you have a choice. • Pay attention to your bills and billing cycles • Guard your mail against theft: Remove promptly and don’t put outgoing mail in box with a “RED” flag. • Put passwords on your accounts that are not easily identified.

MINIMIZE YOUR RISK • Minimize ID information that you carry with you, especially SS# MINIMIZE YOUR RISK • Minimize ID information that you carry with you, especially SS# card • Do not give personal info out over phone, through mail or over internet • Keep items with personal information is a safe place at home • Order a credit report yearly

IF YOU’RE A VICTIM • Contact the fraud departments of each of the three IF YOU’RE A VICTIM • Contact the fraud departments of each of the three major credit bureaus. • Contact the creditors for any accounts that have been tampered with or opened fraudulently • File a report with your local police or the police in the community where the identity theft took place. • File a complaint with the FTC (1 -877 -438 -4338

COMPLAINT LETTERS 1. Include your name, address, home, work and cell phone numbers and COMPLAINT LETTERS 1. Include your name, address, home, work and cell phone numbers and account number. 2. The name of the person(s) you are writing to, their title, the company name and address. 3. Important facts about the purchase. The date and place. All product information such as model, size, color, etc. 4. If you are writing to complain about a service, describe the service which you received.

5. Clarify the subject of the complaint. Clearly describe the problem. 6. State your 5. Clarify the subject of the complaint. Clearly describe the problem. 6. State your expectations. What do you want done about the problem and how long you are willing to wait to have it resolved. 7. Include copies of all important documents: bills, sales receipts, etc.

SAMPLE LETTER FORMAT Name of person written to Name of company/business Street address City/State/Zip SAMPLE LETTER FORMAT Name of person written to Name of company/business Street address City/State/Zip code Dear (Name of person written to) or To Whom It May Concern: Letter starts here. Use a readable font such as Times of Palatino in 11 or 12 point type size and keep margins 2” on the top and 1” on sides and bottom. Remember to be specific, straight forward, and civil/polite in your letter. Remember to spell check and read your letter out loud to catch any errors before you consider it ready for mailing. Finally, remember to close your letter appropriately and include your return address, phone number, and email address if desired. Sincerely, You name here Your return street address Your city, state, zip code Your phone & email (optional)

 • • • BEING A WISE CONSUMER Sources of Information: Family & Friends • • • BEING A WISE CONSUMER Sources of Information: Family & Friends Advertising Sales & Informational Brochures Catalogs Magazines & Newspaper Articles Consumer Product-Testing Organizations

THE RICH GET RICHER, THE POOR GET POORER THE RICH GET RICHER, THE POOR GET POORER

SOCIOECONOMIC STATUS BY RACE SOCIOECONOMIC STATUS BY RACE

True/False Questions Answer the following true/false questions in groups. • • • Family work True/False Questions Answer the following true/false questions in groups. • • • Family work is inferior to paid work. Women should quit working for pay after children are born. Housework is a drag. Most people who are poor are victims of fate. The war on poverty has become the war on welfare. Women’s employment is good for their families.

FAMILY WORK • The work we do in the home without pay • What FAMILY WORK • The work we do in the home without pay • What do you do? “I’m a homemaker” • Does employment take precedence over family? (Expected of men)

WORK & FAMILY LINKAGE • What affect does work have on family? • Work WORK & FAMILY LINKAGE • What affect does work have on family? • Work spillover (Effects men or women more? ) • Climate in home can affect work. • Higher self esteem allows one to reduce standards at home.

WOMEN IN WORKFORCE • 1900 “WORK” and “Family work” separated. • 1980 married women WOMEN IN WORKFORCE • 1900 “WORK” and “Family work” separated. • 1980 married women employment became the norm. • Studies show it has positive rather than negative effects on family. • Between 1960 – 1997 women working doubled. • 70% of married women with children worked. • 2/3 of women with young children worked.

WHY DID MORE WOMEN GO TO WORK? • Financial (due to inflation & decline WHY DID MORE WOMEN GO TO WORK? • Financial (due to inflation & decline in wages) • Social norm • Self fulfillment • Attitudes about employment & family

WHAT AFFECT DID WORKING HAVE ON WOMEN? • Higher self esteem • Sense of WHAT AFFECT DID WORKING HAVE ON WOMEN? • Higher self esteem • Sense of control (power) • Improved emotional & physical well being

WORKING HAD AN AFFECT ON: Domestic support from partner • Men see their role WORKING HAD AN AFFECT ON: Domestic support from partner • Men see their role as “helping” • Seldom equal – women do twice as much (but men think they do 50/50) • Second Shift – work to do when one gets home • Leisure gap – men’s leisure more important

WOMEN USUALLY RETURN TO WORK WHEN CHLDREN BECOME SCHOOL AGE • • (most common WOMEN USUALLY RETURN TO WORK WHEN CHLDREN BECOME SCHOOL AGE • • (most common daycare solution) Remaining in workforce affects earning ability WAGE GAP: Women make $. 75 to men making $1 Most work in low-paying, low-status, lowmobility jobs Satisfaction depends on attitude toward work and support of spouse

COMPARISON OF WOMEN’S VS MEN’S WAGES IN THE US COMPARISON OF WOMEN’S VS MEN’S WAGES IN THE US

STAY AT HOME MOMS CAN EXPERIENCE • Mastery over cooking • Entertaining • Children STAY AT HOME MOMS CAN EXPERIENCE • Mastery over cooking • Entertaining • Children • Loneliness • Long Days • Role Strain Good to network with other women

STATISTICS ON WOMEN IN UTAH • 90% will marry • 50% Of those married STATISTICS ON WOMEN IN UTAH • 90% will marry • 50% Of those married will divorce (7% will get alimony) (90% of all single parent households are woman) (For single women, the years of employment exceeds 40) • 10% widowed by age 50 • 90% work for 30 years or more (80% of these, work for low wages) • 7% never work – have 2. 2 kids and stay home as a housewife • 50% of women with children under 1 years old work

UNLESS A WOMAN PLANS TO NOT BE POOR – SHE WILL END UP POOR UNLESS A WOMAN PLANS TO NOT BE POOR – SHE WILL END UP POOR • One can not support a family on minimum wage, and being prepared for the right job is vitally important.

WHAT IS SEXUAL HARASSMENT? • Unwanted sexual behavior toward another person. • 70% of WHAT IS SEXUAL HARASSMENT? • Unwanted sexual behavior toward another person. • 70% of women, 15% men sexually harassed. • Touching, verbal comments, name calling, spreading sexual rumors, • Sexual or dirty jokes, cartoons, picture or pornography, gestures with hands or body, pressure for sexual activity, cornering or stalking, catcalls, whistles, etc.

EXAMPLES: • • • Stuart is Roberta’s supervisor. He repeatedly asks her to date EXAMPLES: • • • Stuart is Roberta’s supervisor. He repeatedly asks her to date him. She consistently says no. Stuart has recently started to criticize Roberta’s work and has threatened that if she does not “get with the program” she could lose her job. The men that work around Anne constantly make sexual comments regarding her appearance. They make a game of brushing against her as she walks by. Daryl really wants a spot on the basketball team. Coach Johnson told Daryl he probably wouldn’t make the team, but if Daryl really wanted a chance, he could come over to his house Friday night to “see what could be worked out. ” Is this sexual harassment?

WHAT TO DO IN THE CASE OF SEXUAL HARASSMENT: • First step to take WHAT TO DO IN THE CASE OF SEXUAL HARASSMENT: • First step to take against it is to verbalize your feeling to the person. Tell them you don’t like it and want it to stop. • Document times, places, witnesses and what happened. • Report it to superiors, human resources department, a lawyer, or police.

SEXUAL HARASSMENT • • Abuse of power Creation of hostile environment 50% of women SEXUAL HARASSMENT • • Abuse of power Creation of hostile environment 50% of women are harassed during working years. • Men less likely to perceive activities as being harassing but misperceived friendliness as sexual interest. • Women see male/female relationships as more adversarial.

CHILD CARE • • Frustration in finding adequate child care. Cost of day care CHILD CARE • • Frustration in finding adequate child care. Cost of day care #1 reason for women staying on welfare. • ½ of employed parents have children cared for outside own home. • Self care becoming major form of child care (Latch-key). • Workplace has failed to recognize that the family has been radically altered in last 50 years. • Flex time offered by 45% of companies but only 10% use it • Job sharing

UNEMPLOYMENT • Economic strain related to lower levels of marital satisfaction • Single parent UNEMPLOYMENT • Economic strain related to lower levels of marital satisfaction • Single parent families hardest hit • Increase abuse, alcohol, low self esteem

DEALING WITH UNEMPLOYMENT • • • Take time to talk with entire family Take DEALING WITH UNEMPLOYMENT • • • Take time to talk with entire family Take time to listen (Everyone reacts differently to stress) Find out who’s hurting (Be sure to validate their feelings) Let your feelings out, together or alone (Don’t bottle them up) Solve problems together as a team Decide together what you can’t afford What you can afford and do as a family for fun How you will get by with less

POVERTRY IMAGINE A PERSON IN POVERTY – DESCRIBE THEM? Do they have a character POVERTRY IMAGINE A PERSON IN POVERTY – DESCRIBE THEM? Do they have a character flaw? 32. 4% OF SINGLE MOTHER FAMILIES POOR (feminization of poverty) • 25% of poverty are families • Majority are Caucasian. American

EDUCATION ATTAINMENT BY ETHNICITY EDUCATION ATTAINMENT BY ETHNICITY

POVERTY RATES BY ETHNICITY POVERTY RATES BY ETHNICITY

POVERTY BY FAMILY TYPE & ETHNICITY POVERTY BY FAMILY TYPE & ETHNICITY

CHILDREN UNDER 18 IN POVERTY BY FAMILY TYPE & ETHNICITY CHILDREN UNDER 18 IN POVERTY BY FAMILY TYPE & ETHNICITY

HALF OF OUR CHILDREN WILL EXPERIENCE SPELLS OF POVERTY AT LEAST ONCE IN THEIR HALF OF OUR CHILDREN WILL EXPERIENCE SPELLS OF POVERTY AT LEAST ONCE IN THEIR LIFETIME • 25% of American population will be welfare recipients sometime during life. • Welfare recipients are usually self sufficient within a year or two. (1996 Clinton’s law restricting time on welfare) • Temporary Assistance for Needy Families What could make a difference in poverty levels? • Maintain 2 parent families • Teen mothers make connection between sex and pregnancy

THE BUDGET PROCESS A plan for spending and saving It can help you: • THE BUDGET PROCESS A plan for spending and saving It can help you: • Prevent impulse spending • Decide what you can or cannot afford • Know where your money goes • Increase savings • Decide how to protect against financial consequences of unemployment, sickness, death, etc.

DEVELOPING A SUCCESSFUL BUDGET • • • Determine your goals Estimate your income Estimate DEVELOPING A SUCCESSFUL BUDGET • • • Determine your goals Estimate your income Estimate your expenses • Record expenses for a few months • Evaluate & revise budget

ESTIMATED EXPENSES • • • Savings 5 -10% Housing 20 -35% Utilities 4 -7% ESTIMATED EXPENSES • • • Savings 5 -10% Housing 20 -35% Utilities 4 -7% (about $100/household) Food 15 -30% (about $300/person) Personal necessities 2 -4% Medical 2 -8% Clothing 3 -10% Transportation 6 -20% Recreation 2 -6%

BUDGETING TERMS: • • • BUDGET: A plan for managing income and expenses GROSS BUDGETING TERMS: • • • BUDGET: A plan for managing income and expenses GROSS INCOME: The total amount of income earned before deduction are made. NET INCOME: Amount of income left after deductions are taken. FIXED EXPENSES: Expenses which usually do not vary in amount and must be paid monthly (house, auto) VARIABLE EXPENSES: Expenses which vary from month to month (food, clothing, entertainment, gifts)

CARRYING OUT YOUR BUDGET • Become a good consumer Get the most for your CARRYING OUT YOUR BUDGET • Become a good consumer Get the most for your money Recognize quality Avoid waste Realize time costs as well as money costs • Keep accurate records • Revise your budget periodically • Have an additional $200 - $500 built into budget for emergencies and unforeseen expenses.

SOME MONEY FACTS $ The average person spends money three times a day. $ SOME MONEY FACTS $ The average person spends money three times a day. $ A movie with popcorn and a soft drink can easily cost $20. $ Just one soft drink a day for $. 99 adds up to $361. 35 in a year. $ Food is the biggest expense item for teenagers.

HOUSING THE LARGEST EXPENSE OF A BUDGET! USUALLY AT LEAST 1/3 OF NET INCOME. HOUSING THE LARGEST EXPENSE OF A BUDGET! USUALLY AT LEAST 1/3 OF NET INCOME.

FINDING AN APARTMENT • Stage in live: Single, couple, family • Preferences: Party type FINDING AN APARTMENT • Stage in live: Single, couple, family • Preferences: Party type or private, hobbies, pets, pool, clubhouse • Location: Should be top priority, transportation • Price: Largest item in budget (1/4 – 1/3 of income)

CONSIDERATIONS • Needs vrs. Wants: Furnished, # of bedrooms, private entrance, location, pets, AC CONSIDERATIONS • Needs vrs. Wants: Furnished, # of bedrooms, private entrance, location, pets, AC • Things to avoid: Noisy/busy street, center of city or rural area • Affordability – 1 month’s rent equals one week’s take home pay or – 1 month’s rent equals 1/3 of the monthly income

HOW TO FIND AN APARTMENT • • • Classified ads in newspaper Rental magazines HOW TO FIND AN APARTMENT • • • Classified ads in newspaper Rental magazines Bulletin boards in supermarkets, etc. Drive around looking for rental signs College housing directors Contact local realtors for rental units they may own. • Ask friends

QUESTIONS TO ASK WHEN CALLING • How much is the rent? Does it cover QUESTIONS TO ASK WHEN CALLING • How much is the rent? Does it cover utilities? Which ones? • Is a lease required? What is the time period? • What is the location? Is it near public transportation? • What condition is the apartments in? • Are pets allowed? • How many parking spaces are provided?

COMMON ABBREVIATIONS • • A/C Ba BR Dup. Lse. Req. No Lse WBFP DR COMMON ABBREVIATIONS • • A/C Ba BR Dup. Lse. Req. No Lse WBFP DR • • Ldry Furn. Kit. LR Pvt. Ent. Util. Incl. WWC WBFP Nr bus

RENTER’S VOCABULARY 1. EVICTION: A notice from landlord requiring the tenant to move out RENTER’S VOCABULARY 1. EVICTION: A notice from landlord requiring the tenant to move out for nonpayment of rent or breaking the rules of the lease. 2. GRACE PERIOD: The time after rent is due without penalty to make rent payment. 3. HOUSE RULES: Additional rules required by the landlord. 4. HOUSING CODE: City stipulations on types of buildings or units that may be constructed in certain areas

RENTERS VOCAB continued 5. LANDLORD: The manager of a rental unit, collect rent. 6. RENTERS VOCAB continued 5. LANDLORD: The manager of a rental unit, collect rent. 6. LEASE: The written legal agreement between lessor and lessee, stating terms (rental period, rent, due date, etc). 7. LESSEE: The person renting the apartment from the landlord. Also called tenant. 8. LESSOR: The manager of rental unit, collects rent.

RENTER’S VOCAB continued 9. PREMISES: The rental unit and grounds. 10. PROVISIONS: Parts of RENTER’S VOCAB continued 9. PREMISES: The rental unit and grounds. 10. PROVISIONS: Parts of the rental agreement. 11. RENTAL AGREEMENT: A written or verbal agreement to rent a property for a monthly fee. Terminates with 30 day notice. 12. SECURITY DEPOSIT: Money to cover damages to apartment by tenant during rental period. ($50 to o month’s rent)

RENTER’S VOCAB continued 13. SLEEPING ROOM: Furnished bedroom with no cooking facilities. Bathroom may RENTER’S VOCAB continued 13. SLEEPING ROOM: Furnished bedroom with no cooking facilities. Bathroom may be shared. 14. STUDIO/EFFICIENCY APRTMENT: Large room which is living room by day and bedroom by night. Compact kitchen included. 15. SUBLEASE: Allows another person to move in and fulfill the Tenant’s part of the lease if original tenant must move out before the end of the lease period. 16. TENANT: The person renting the apartment from the landlord. 17. TERMS: Specific items agreed upon in the lease.

RENTER’S VOCAB continued 18. 30 DAYS NOTICE: Either landlord or tenant must give the RENTER’S VOCAB continued 18. 30 DAYS NOTICE: Either landlord or tenant must give the other a 30 -day notice of intent to move out or terminate the lease. 19. WAIVER: A statement in a lease to give up certain rights or provisions (eq. 30 -day notice if transferred to another city). 20. VIOLATION: A tenant who does not live up to the agreed upon terms of the lease.

HOUSING ALTERNATIVES • • Stay with parents Single Room: Studio apartment or rent a HOUSING ALTERNATIVES • • Stay with parents Single Room: Studio apartment or rent a room Dormitory: Usually double occupancy Apartments: Gives great mobility, few financial risks, less maintenance. • Condominium: Individual ownership of one unit, joint ownership with fee of common areas.

HOUSING ALTERNATIVE continued • Townhouse: Side by side and run much like condos. • HOUSING ALTERNATIVE continued • Townhouse: Side by side and run much like condos. • Cooperative: Purchase stock in corporations that owns units. • Mobile homes: Low priced portable home. Rent space in a mobile home park. • Single family home: “The American Dream”. 63% of Americans have a home

ADVANTAGES OF HOME OWNERSHIP • Feeling of security and independence – Pets, garden, home ADVANTAGES OF HOME OWNERSHIP • Feeling of security and independence – Pets, garden, home improvements • Owning a home builds equity • Serves as a good investment • Offers tax benefits

HOW TO BUY A CAR • Do I want transportation, status, comfort, or reliability? HOW TO BUY A CAR • Do I want transportation, status, comfort, or reliability? • Am I getting a fair price for a new or used car? (Do your homework) • How much will insurance cost for this car? • Have I had a mechanic check everything on the car? • Is there a warranty on the car? • Have I checked all sources for the type of car I can afford? • Have I remembered to include taxes, licensing fees, insurance, and operating expenses?

CAR INSURANCE Most states require all auto owners to carry liability insurance on their CAR INSURANCE Most states require all auto owners to carry liability insurance on their car. • BODILY INJURY LIABILITY: Includes damage & legal fees if sued as a result of injury or death caused by your car. • PROPERTY DAMAGE LIABILITY: Damage to another’s car or property if you are at fault. • COLLISION: Damages to your car as a result of collision. • MEDICAL: Medical fees resulting from an accident involving your car for both driver and passengers. • COMPREHENSIVE: Damage by theft, fire, vandalism, storms, and causes other than accidents.

INSURANCE RATES = RISK • • LOCATION: AGE: GENDER: MARITAL STATUS: DRIVING RECORD: HOW INSURANCE RATES = RISK • • LOCATION: AGE: GENDER: MARITAL STATUS: DRIVING RECORD: HOW MUCH YOU DRIVE: TYPE OF CAR AGE OF CAR:

LIFE INSURANCE TERMS • POLICY: Legal contract issued by the insurance company in your LIFE INSURANCE TERMS • POLICY: Legal contract issued by the insurance company in your name. • PREMIUM: The amount of money you pay for the insurance. • BENEFICIARY: The person you designate to receive the benefits of the policy upon your death. • FACE AMOUNT: The amount of money that will be paid to the beneficiary upon your death.

WHY PURCHASE LIFE INSURANCE? • Take care of immediate expenses at death. • Helps WHY PURCHASE LIFE INSURANCE? • Take care of immediate expenses at death. • Helps a family maintain an adequate level of living if a wage earner dies. • Pay off the mortgage or other debts.

TYPES OF LIFE INSURANCE: TERM LIFE TYPES OF LIFE INSURANCE: TERM LIFE

TERM LIFE • • Lowest premiums but build no equity Offers protection during a TERM LIFE • • Lowest premiums but build no equity Offers protection during a time when financial responsibilities are great but income is limited (young couples with children) • RENEWABLE TERM INSURANCE: When this policy expires, you can renew it without another physical exam but premiums increase. • DECREASING TERM INSURANCE: Face amount gradually decreases to “ 0” by the end of the term.

TYPES OF LIFE INSURANCE: WHOLE LIFE TYPES OF LIFE INSURANCE: WHOLE LIFE

WHOLE LIFE • • • Designed to cover a person’s entire life Builds equity WHOLE LIFE • • • Designed to cover a person’s entire life Builds equity of cash value. The earlier you buy, the lower the premiums are and they won’t increase. • Cash value can be used as collateral for a loan or a future retirement plan.

OTHER TYPES OF LIFE INSURANCE • ADJUSTABLE LIFE INSURANCE: Offers varying premiums, benefits and OTHER TYPES OF LIFE INSURANCE • ADJUSTABLE LIFE INSURANCE: Offers varying premiums, benefits and savings. • UNIVERSAL LIFE INSURANCE: Protection and savings are clearly separated. You can increase or decrease the amount of protection and you can withdraw or add to savings. • VARIABLE LIFE INSURANCE: You pay a level premium. Part pays for protection, the rest is savings.

HEALTH INSURANCE • WHY IS IT NECESSAY? – To provide necessary and quality care HEALTH INSURANCE • WHY IS IT NECESSAY? – To provide necessary and quality care for your family – To avoid catastrophic financial problems

TYPES OF HEALTH INSURANCE • MAJOR MEDICAL: Covers many out-ofhospital costs. • CATASTROPHIC INSURANCE: TYPES OF HEALTH INSURANCE • MAJOR MEDICAL: Covers many out-ofhospital costs. • CATASTROPHIC INSURANCE: Covers costs of intensive care, heart surgery, or long illness. • GROUP INSURANCE: Less expensive and usually offered by employers who pay part.

TYPES OF HEALTH INSURANCE continued • HMO (Health Maintenance Organization): You pay a set TYPES OF HEALTH INSURANCE continued • HMO (Health Maintenance Organization): You pay a set fee on a regular basis. You must go to a doctor that works for the HMO. • PPO (Preferred Provider Organization): Similar to HMO but offers lower cost care. Allows freedom of choice of doctors but the cost is higher if they are not on the list. • DISABILITY INCOME INSURANCE: Protects a person or family from loss of income due to illness of disabling injury. Provides a portion of salary during the time they are unable to work.

TYPES OF COVERAGE: • DEDUCTIBLE CLAUSE: Insured will pay the first expense up to TYPES OF COVERAGE: • DEDUCTIBLE CLAUSE: Insured will pay the first expense up to $200 -500. • CO-INSURANCE: Policy holder will pay a percentage of the costs (20 -25%) • STOP-LOSS PROTECTION: Limits your out of pocket co-insurance payments. • RIGHT TO TRANSFER: Gives you the right to continue your group policy even if you leave the group. • MAXIMUM BENEFITS: Sets a limit on the benefits that you can collect over your lifetime.

HOW TO BEAT THE HIGH COST OF EATING Fact or Fallacy: • There is HOW TO BEAT THE HIGH COST OF EATING Fact or Fallacy: • There is no store cheaper than the rest 80% of buying decisions are made in the store • Loss leader are a bargain • Feature spacing and end isle display have the best prices • It is best to find sales to fit your planned menu • Brand names are always the best quality • The higher the cost the better the product • Coupons are not worth you time for the small savings involved • The most profitable departments are the deli, bakery, & produce

EAT BETTER FOR LESS • • Buy in bulk Shop sales, coupons, rebates Cook EAT BETTER FOR LESS • • Buy in bulk Shop sales, coupons, rebates Cook from scratch Plan menus according to the ads Grow your own food Drink water and cook breakfast Return something that is bad & request the store to carry certain items • Know your prices

SNOOPY SNOOPY

COOKIE MONSTER Cookie bag represents salary. Eliminate cookies. BAG OF 60 COOKIES = GROSS COOKIE MONSTER Cookie bag represents salary. Eliminate cookies. BAG OF 60 COOKIES = GROSS INCOME FEDERAL TAXES: 10% (6 COOKIES) STATE TAXES: 5% (3 COOKIES) SOCIAL SECURITY: 6% (3 ½ COOKIES) MEDICARE: 1. 5% (3/4 COOKIES) LIFE INSURANCE: 1% (1/2 COOKIE) ACCIDENT INSURANCE: 2% (1 COOKIE) HEALTH INSURANCE: 2% (1 COOKIE)

“YOU WON AGAIN, MOM” “YOU WON AGAIN, MOM”

MONEY MANAGEMENT ON THE INTERNET • BUYING A HOUSE? www. realtor. com www. utahrealestate. MONEY MANAGEMENT ON THE INTERNET • BUYING A HOUSE? www. realtor. com www. utahrealestate. com • BUYING A CAR? www. kbb. com www. utahwheels. com • BE A WISE CONSUMER www. consumerreports. org (they charge a fee for most things) • WANT TO SEE YOUR CREDIT REPORT? www. consumerinfo. com • WANT TO INVEST IN STOCKS? www. cnn. fn (tells how the market is doing) www. smartmoney. com (recommendations of what to buy and sell) www. pcquote. online (how stocks are doing on a daily basis) Go to computer lab and check out these sites.

VOCABULARY 1. Family Policy: A set of objectives concerning family well being and specific VOCABULARY 1. Family Policy: A set of objectives concerning family well being and specific measures initiated by government to achieve them. 2. Family Work: Unpaid work that is undertaken by the family members to sustain the family. 3. Ghetto Poor: Inner city residents who live in poverty 4. Homemaker Role: Role usually by a woman, responsible for home management and child rearing.

VOCABULARY cont’d 5. Hostile Environment: Created through sexual harassment in which ability to learn VOCABULARY cont’d 5. Hostile Environment: Created through sexual harassment in which ability to learn or work is negatively influenced by harasser’s actions. 6. Second Shift: Domestic responsibilities awaiting employed women after their paid work hours are completed. 7. Sexual Harassment: Deliberate or repeated unsolicited verbal comments, gestures, or physical contact that is sexual in nature and unwelcomed by the recipient. Includes abuse of power and creation of hostile environment.

VOCABULARY cont’d 8. Shift Couples: Dual income households in which spouses work different, often VOCABULARY cont’d 8. Shift Couples: Dual income households in which spouses work different, often nonoverlapping shifts. 9. TANF: Temporary Assistance to Needy Families = Government assistance to families with children in times of poverty. 10. Work Spillover: The effect that employment has on time, energy, activities, and psychological functioning of workers and their families.