Suggested Objective a: Summarize the use of a budget to make personal economic decisions and plan for the future

What exactly is a spending plan? Why would I want to have a spending plan? Look at the KnowDebt.org website to learn the answers to these questions and more. You will even see how to start a spending plan and the budgeting process broken into simple steps. Click the KnowDebt.org link to learn more.

It is important to have a spending and saving plan. AmericaSaves.org provides a six step plan for spending and savings plans. These steps are as follows:

Identifying goals
Setting goals
Recording income
Determining expenses
Developing your savings plan
Using the plan

Each of the steps are explained in detail. The article provides information for holding yourself accountable to the plan. An interactive budget and financial calendar are posted as financial tools as well. Click the AmericaSaves.org link to view the information.

Unlocking the Magic of Compound Interest is a short article that explains how you can extra money (interest). In other words, you invest or save money. This invested money earns interest. When you leave this interest payment with your original investment (principal), this additional money will earn money. So, this extra money earned over time is called compound interest. Click the link to learn more.

Everyone should save money. The minute you start earning income, a portion of this money should be saved. You never know what emergencies could arise that would require extra cash to be available for covering these emergencies. Look at 10 Minutes with a Financial Planner - Savings Strategies for Young Americans to see a Question and Answer time for financial planning. Some of the questions and answers may surprise you.

The next two websites provide information for how to create and manage a budget. The first website is from Debt.org. The second website is from Mint.com. Click each link to learn more about creating and managing a budget.

Debt.org provides steps for creating a budget. Details are provided for doing so. Additional information for revisiting and revising budgets is provided. However, keep in mind that a strong commitment is needed for a budget to be successful. One must prepare for unexpected bills or emergencies when creating budgets. Read the the Debt.org information to learn the steps and benefits of budgeting.

Mint.com provides steps in creating a budget. The steps are similar to those provided earlier. The wording is different only. What is great about Mint.com is that each of the topics and steps has a clickable link to more detailed information. Example - How do I monitor and adjust my budget? Click the link to read financial literacy links and budgeting tools. Great resource with information to assist you with upcoming assignments!

Bill Cosby on Budgeting

The last piece of this puzzle to consider for this competency is our personal information. How can you control what personal information is revealed or available? Let's look closely because this is very important to your overall fiscal and personal safety.

What Can You Do? Controlling Personal Information by the Electronic Privacy Information Center provides general hints for controlling access to your personal information. Types of information like medical records and social security numbers are mentioned. Strategies for maintaining your privacy are given on the page. Be mindful of telemarketers and their scams. By clicking links on this page, you can view more information in detail about each area.

The Privacy Rights Clearinghouse provides many fact sheets in their Privacy Survival Guide: Take Control of Your Personal Information. Notice that you are advised to order your free credit reports annually, to restrict access to your credit report, not to participate in unsolicited credit card offers, and to secure computer and portable devices. Other areas that are important for understanding include knowing how your personal information is revealed, how to safe when social networking (not reveal too much information), and how to reduce the amount of junk mail sent to you. Many areas of have links that can be clicked for additional detailed information or fact sheets. Look especially at Fact Sheet 6: Credit Reporting Basics: How Private Is My Credit Report?

Suggested Objective b: Compare and contrast different incomes in careers depending on supply and demand of skills and education levels

Ladders provides 5 easy steps for increasing your earning potential. Look at the short article to learn more about these 5 easy steps. Click the Ladders link.

Brian Tracy offers suggestions for increasing your income potential. Watch the short video below.

How to Make More Money and Increase Your Salary

Income can be earned in a variety of ways. According to the IRS website, "All wages and any other compensation for services performed in the United States are generally considered to be from sources in the United States." Keep in mind that income can be fringe benefits, scholarships and grants, and pension payments.

There are "Eight Factors that Can Affect Your Pay" according to Salary.com. Pay is affected by years of experience and education. The more education or experience you have, generally, the higher your wage. Performance reviews and your boss affect take home pay. You should always strive for great performance reviews and have a good relationship with your boss. The boss will usually be the one to recommend you for promotions and higher pay opportunities. It is important to be a member of professional organizations in your area of expertise as well as have certifications. The certifications lend credibility to your skills. Professional organizations can aid with keeping your abreast of current issues in your profession. Look at this article closely for more insight into factors affecting your pay.

The Educational Credit Management Corporation (ECMC) provides a flyer that can assist you with understanding your paycheck. Generally, paychecks have two parts - a check stub and a paycheck. The paycheck is your pay after all deductions have been made. The check stub lists all of the items that have been taken from your overall earnings. Federal and state taxes are some of the first items deducted from the gross (overall) paycheck. Other deductions could include insurance and stock option electives. Look at the pdf on the ECMC website by clicking the link.

Open the W4 W2 Tax Statement and Pay Stub Examples.pdf document. Use this open document to follow with the recording below. In the recording Dr. Taylor from the Research and Curriculum Unit at Mississippi State University explains the purpose of three important financial documents that you must complete or will receive when you begin working. View the recording with the open W4 W2 Tax Statement and Pay Stub Examples.pdf document. The information used by Dr. Taylor was obtained from United States Federal Reserve Bank of St. Louis at www.stlouisfed.org/education on July 11, 2014.

Tax Forms and Pay Stub.mp4

Suggested Objective c: Research the different roles in the economy such as producers, consumers, savers, workers, and investors

"People who make goods and provide services are called producers . You are a producer. The people in your family are also producers.

People who use goods and services are called consumers . You are a consumer. The people in your family are also consumers."

Copied from http://www.econedlink.org/lessons/index.php?lid=457&type=educator on October 24, 2014

Play the Quizlet games for Economics: Consumers, Savers, and Investors by MistyMaul by clicking the link.

Suggested Objective d: Examine the tools that can be used to manage financial resources

Learn to Evaluate Financial Information by CEFCU (Citizens Equity First Credit Union) explains the importance of everyone having a fundamental understanding of finance and not to leave financial decision making to professionals only. All people need to understand and have a voice in determining how their wealth (or lack of it) is spent. It will also allow a person to check that poor decisions are not made regarding finances - personal or business. Basic facts that are presented by CEFCU in this article include the saying "if it's too good to be true..." Make sure you understand all information before you invest in a venture. Do not fall for a "guaranteed sure thing" because there are no "sure things" in investing and financial planning. Always check the facts and check the authority or authenticity of the information. Consider how reliable the information is because there is truth in numbers. Lastly, remember to hold steady with investing. Do not "jump in and out" of a product or service. Read the article for more details.

Learning to read financial statements can be daunting. However, the U.S. Securities and Exchange Commission has posted on the Internet some basic information for understanding financial statements. Click the link to view more.

As you browse the U.S. Securities and Exchange Commission, you will notice several primary financial documents are mentioned and explained. Terminology like assets, liabilities, and equity are defined with examples provided. Towards the end of the page, several key financial ratios that are used to "test" the performance or earning potential are given.

Speaking of financial ratios and terminology, Zender from the University of Colorado posted a PowerPoint on financial information. Look at the PowerPoint provided below by clicking the link to it. The PowerPoint is named Session 3.

Session3-notes.ppt

What Are the Types of Financial Ratios Used to Analyze Performance? is an article from Small Business. James explains thoroughly profitability ratios, efficiency ratios, liquidity ratios, and solvency ratios. Each of these are designed to assist with making informed financial decisions - generally for businesses but could be applied personally (in principle).

Suggested Objective e: Examine consequences of economic choices made by individuals

We have looked at information describing tools for analyzing financial information. Now let's consider steps in making better financial decisions in today's world. There are steps or considerations to take before making any financial decisions.

3 Simple Steps to Make Better Financial Decisions Today by Russ Thornton in the Shriver Report states that a person should ask why the financial decision is being made. Then, one should focus on the decisions that can be controlled by the person. After the why and the items that can be controlled are investigated, tune out the extraneous "noise" - advice from others, distractions from TV, and more. Put all the financial pieces together to make a decision.

Mind Tools provides the article Decision Making Skills - Start Here! The article mentions issues that difficult financial decisions will include. A nearly 4 minute video on the page can assist with understanding the information presented. Basically, a person needs to take a systematic approach to decision making. Six steps with detailed information and links for further exploration are provided. Look closely at this page by clicking the link and its accompanying information.

Step 1: Create a constructive environment

Step 2: Generate Good Alternatives

Step 3: Explore the Alternatives

Step 4: Choose the Best Alternative

Step 5: Check Your Decision

Step 6: Communicate Your Decision and Move to Action!

Real Simple presents How to Make Good Financial Decisions. This site provides three strategies to improve the bottom line for your personal wealth. They are to set your priorities, to set a budget and follow it, and to quiz yourself as you go. In other words, before you buy something, ask questions like if I buy this, who will be affected or are there enough benefits to buying this item to justify its purchase.