Personal+Finance+and+Economic+Literacy

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This unit, originally created by Dr. Story and modified by me, is based on the 5 Pillars of economic literacy. For the purposes of this unit, you are in the "real world" with a job and a salary and expenses. Hopefully, when you are really in the "real world" you will be able to use this unit to help you make good decisions.

=I. Making money= (50 points) A. The first step in your path to financial freedom is to make some money. How much will you need to support yourself in the life to which you have become accustomed (a phrase previously used by fathers to intimidate prospective suitors of their daughters)? First, do the quick [|"Reality Check"] to see if you can take charge of your finances! **Print out your results.**

B. Now that you know how much money you need to make, you have to get a job to support yourself.

1. First you should do two quick self-assessments of your skills using the following surveys. **Be sure and print them out and fill them in.**



2. Next you need to look for a job [| (craig's list] ) based on what skills you have and how much you need to make. **Print out the job listing**

3. Now that you have decided which job you will go after, **write and print out a cover letter** to the ad detailing your situation, your past experience and your desire for an interview. Be sure to give specific information.

4. This cover letter will "cover" a resume. Here is a. **Print out your resume.**

C. Congrats! You have the job, now you need to make a budget for yourself. Print out this and complete **only the first column**

=II. Saving Money= (15 points) A. You will notice that one of your budget items, under expenses is "savings". Eventhough it is an expense, saving is also a form of earning - in the future. Since you do not have a lot to set aside for savings, you want to make sure you are saving wisely. There are lots of different ways to save. We will discuss investing later, but for now, read about the benefits of saving and the various out there, paying close attention to the advantages and disadvantages of each.

B. When choosing how you are going to save, you want to pay attention to the interest rate. Study

C. After reviewing the various types of savings accounts and the calculations, **print out**, **complete it and turn it** in. =III. Borrowing money= (25 points) A. The headlines are full of news of the world "Credit Crunch". You don't have to end up in a crunch if you borrow wisely. The most common form of borrowing is having credit. Read the : the three C's you need consider, your responsibilities and building a credit history, the types and sources of credit and finally, how much you can afford. B. After reading about credit, **print out and complete** and **turn it in** =IV. Investing Money= (40 points) A. Just as there are many ways to save money (see above) here are many ways to invest as well. In thinking about the options, it is important to consider the degree of risk involved and the potential for return. Typically, the higher the risk, the higher the potential return. The key is to work up to the riskier investments, where you stand to earn the most money, but only after you've successfully established some safer holdings. Start by reading through which demonstrate why that sort of sequential order is important.

B. You are now an expert financial adviser. Some people are asking for advice on their next step in investing. They're at different stages of saving and investing, and they don't know where to go from here. Using what you've just learned about the stages of saving and investing, give them sound advice that will help their. **Print out your answers and turn them in.** =V. Giving Money= (45 points) A. Congratulations, you have made it to the last Pillar of Personal Finance and Economic Literacy - "Giving Money" or "Philanthropy" if you want to use fancy words. Either way, it is important to to keep giving money in mind as you are making it, borrowing it, saving it or investing it. This is not a new concept, as you will read in this excerpt

B. Read about [|Giving] and answer these C. One of the "hottest" forms of giving is microcredit. [|Read] about it, then answer these

Over the course of the quarter, you will have class time to work on each of these. The entire packet, made up of the exercises in each section, is due on the last day of the quarter, **Friday, October 24** at the beginning of class.

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