Financial Literacy for 8th graders

This was posted by Laron and Xavier on 7 NOV 2013.

Savings and budget notes:

Consistent Tracking: 50% of earnings/allowance

Saving it as a resource.

For emergencies

Worries: go crazy with money, Spending it on same thing over and over again. Junk food, games, candy, going to mall.

Later in life: House car notes, Starting own business,

Money goals chart

Put money aside

“If you set aside $100 every year starting at age 14, you’d have $23,000 by age 65, but if you start at age 35, you’ll only have $7,000 by age 65.” Laura Shin from from Forbes states.

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I often hear from my mom “I am not made of money.” Usually she says this when I am at the store and asking to get a game or toy. What my mom is trying to tell me though is not “No” but that if I want something I need to work hard to get it.  She taught me about saving and creating a budget.

Currently, I get $30 in allowance a week. Half of that goes into a savings account and the other half I can spend on anything I want. My mom’s fear is that I would go crazy with money I have in hand and spend it all on unnecessary things like junk food or candy. By saving, I can put money aside for bigger purchases like toys or in case of an emergency.  Later on life, these goals can be expanded to paying for college or buying a house.

Now, that seems along ways away but you can start seeing how you can buy big items by making a money chart or a budget. Figure out how much you will need to purchase the item you want, think about how much money you can save each week or month and then calculate how much time it will take you to reach your goal. Keep track of this goal somewhere visible. You can keep a chart in your room or on the wall and update every time you add money to your account.

When you save money in a bank account, you gain interest on the money you invest. When you keep money in an account for a while, banks are giving you interest on the interest you have already earned. This called compound interest. On the Forbes website, author Laura Shin states, “If you set aside $100 every year starting at age 14, you’d have $23,000 by age 65, but if you start at age 35, you’ll only have $7,000 by age 65.” This is due to compound interest.

Overall saving and budgeting money will pay off in the future and help you reach the goals of a fast car or a big house.  It may seem hard but gaining these skills now will help you achieve your dreams for the future.

Dangers Of Credit Cars and How To Overcome Them

Ever thought you had an endless supply or amount of money? You might think it's all fun and games because the only thing you do is swipe a plastic card and it's paid for. But the real answer is that people don't know that they are spending someone else's money, who is the credit card company who gave you the credit card. I want to let you know that you are in danger when you use money that isn't yours. Especially when it's a credit card company's, because they will charge a high interest rate to the money that you spent.

For example: you go to Walgreen's and you purchase a pack of Scooby Doo band aids. It costs $3.20 and you paid with a credit card, and your credit card company sees it show up and gives you a month to pay it off. You don't so they decide to add 20.99 % interest annually until you pay it off. If you decide to not pay it off they will charge you $35 a month. After one month with a $35 fee and the 1.75 % monthly interest rate you will owe $38.87 (the monthly interest rate is the annual rate divided by 12).   After two months of not paying the fee you will owe $75.16; after three months of not paying the fee you will owe $112.09. After one year you will owe your credit card company $431.75.  If this was me , I would want to use that money to by something useful, like an iPad,  but instead you are left using that money to try and pay someone back for using their money to purchase band aids. :(

So now we have learned the dangers of credit cards, now we can be more prepared intellectually with our money. It's your money and you should use your way.

 

 

Here's what you could watch on your iPad if you could afford one:

 

 

--Leon D.

DEBT!!!

OH MY GOSH!!!!YOU'LL NEVER GUESS WHAT I FOUND OUT TODAY?!?! I found out about debt.What is it? Debt is when you owe something. I bet I know the first thought that pops in your head when you hear the word debt, and that's money. Not always is debt money.

There are so many different types of debt, for example: money,overdue books homework etc. If you owe someone money and you don't pay them, you are in debt because you didn't pay them! The more you put off paying the other guy his/her money, the more debt you build up. If you owe three books to the library and don't give the books to the library by the due date, you are in debt. You'll have to pay a small fee for each day you put off giving the books to the library and that could grow into a lot of money you'll have to owe.  Debt!!!!!!!!!!                                                                                         

Last is homework. If you don't turn in your homework by the due date, you are in debt. The more you put off doing that homework, the fewer points you earn for that assignment which puts you in more debt than you were in from the beginning. If you don't do your homework, your grade goes down. If your grade goes down, you fail that class. If you fail that class, you get in trouble with your parents and it goes on your record and that's not good when you're getting ready to apply for high school or college. So it would be good to say that it is IMPERATIVE for you to do your homework.

Here is how to stay out of debt.Well with money, just pay when you suppose to pay. Already have that money ready to pay to that person/place you owe.With overdue books, take care and keep up with them so when it is time to get them back to the library you'll have them in tiptop shape and you'll have them on time. With homework, just do it. It is not going to hurt you to do it. It is just going to make you smarter. You're not going to die, get in trouble or none of that sort. It helps you instead of hurts you.

So, all in all this is what I have learned today.  Debt is important, and you should try everything you possibly can to stay out of it.Why? Because it can hurt you badly in the long run.

 

Like you and I, the government can be in debt too. The government can owe money to other countries and people. The video explains how.

"Read, Plan, Solve Look Back Process" part of Executive Function Project

Use this link to learn about how to be a better problem solver.
1.  You will read a bout the read, plan, solve look back process.  You will take notes on the provided sheet.
2.  Then, you will be given two examples of how to use the process.  You will take notes on the provided sheet.
3.  Finally, you will be given two opportunities to use the process on your own.  Use the template on the sheet provided to do so.

4.  Finally, you are to create a real-life problem that you have used the read, plan, solve, look back process and explain using the template provided.  (For example, how to choose a high school or how to help a classmate.)

Here is the powerpoint presentation from Ms. Rule's "Top Three Financial Literacy Lessons I Wish I Knew When I Was Young."