This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
It seems like a Catch-22. How can you start building your credit if you don’t have any credit to start with?
Well the truth is most banks will give college students and young adults a credit card with a very low credit limit. Then, if payments are made on time for the first few months, the bank will raise your credit limit and then you will be well on your way to building credit.
This helps you build your credit history which then helps to raise your credit score which then helps to lower the interest rate you will be charged on other loans you might get.
Click on the image below of the video to learn how to build your credit from scratch.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Most studies show that over 70% of Americans own at least one credit card and carry it with them when they go shopping.
Other studies show that most Americans carry an average balance of $6,200 on their cards and pay interest every month, but they DON’T know what the interest rate is that they are being charged.
Nor do they understand how their payment plan impacts their credit score.
Click on the image below to reveal 7 FACTS that you should know about using credit cards.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
The first question you have to ask yourself when you are thinking of making a purchase is: “Do I NEED this or do I just WANT it?”
Stopping at your local coffee shop every day and spending $2.70 for coffee for 270 days a year adds up to $729 a year. And that’s not counting the gas and the time you take to drive to get that cup of coffee.
Saving money is easier than you think and you will learn from this video how to get started and you will see how quickly it starts to add up.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Here is one of the most common questions that people who are trying to get control over their finances ask: If I have a little extra cash, do I pay down debt or do I put the money in my savings account?
On one hand financial advisors tell us to stop paying high interest rates on our credit card balance.
But on the other hand they also tell us to make sure we have at least 3 to 6 months cash in our savings account (Emergency Fund).
So which is it?
The answer is easy, kind of.
Click on the image below to review 5 questions that will help you decided if you should pay down debt or save.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Over time, our society moved away from paying for goods and services with gold and silver to paying for things with cash. In the last two decades, we have been transitioning from paying for things with cash to credit and debit cards.
While these 2 cards may look the same, their features and uses are very different.
Knowing the differences between them and knowing when to use them appropriately is an important part of personal banking.
Did you know using one builds up your credit score and the other doesn’t?
Did you know if someone steals your card you may have liability on one card but not the other?
Click on the image below to learn the differences between credit and debit cards in terms of how they work, how they affect your finances, and the inherent security of each.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Hopefully by now you have a real checking account that you use to manage your monthly cash inflows and outflows.
But are you really using all the features that your checking account offers?
While there are lots of negatives associated with a checking account, likes ATM fees and overdraft charges, there are lots of really good features that they offer.
Are you using direct deposit for your paychecks?
Are you able to move money easily between your checking and your savings account?
Do you get alerts when your balances are low?
Click on the image below to review these 8 Tips to Get the Most Out of Your Checking Account.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Now that you are getting used to managing your checking, savings and credit card accounts as part of this virtual platform, it is time you think about opening real banking accounts.
But where do you begin?
What questions do you need to ask a bank to make sure you are getting the right accounts for you?
Click on the image below to learn about the 10 Questions To Ask A Bank When Opening a New Account.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
As you learn to save, become more aware of your personal finances, you will find yourself accessing your checking, savings, and credit card accounts more and more.
While most banks and credit card companies are willing to open up accounts for you for free, keep in mind that every company has to make money some how. So be aware of the various fees that your bank might charge you.
The common fees are usually when you do something wrong, like bounce a check or use the ATM too many times in a month.
But beware of other fees for just using some services that you assumed were free.
Click on the image below to learn about 7 Common Bank Fees.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
As you learn to save and become more aware of your personal finances, you will find yourself accessing your checking, savings, credit cards and other accounts online or via your mobile phone.
This means bookmarking your banks URLs, installing their mobile apps on your phone, and inevitably the hassle of remembering all of your logins and passwords.
While it is extremely important that you monitor your finances online, it is also important that you are careful and that you safeguard your private information and report any suspicious activity.
Click on the image below to learn 10 Important Online and Mobile Security Tips to follow.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Once you get in the habit of saving money each month, the next question is where exactly to you put the money you are saving?
The obvious choices are to keep it in cash in your piggy bank at home or put it in a bank account.
Well here is a secret… Instead of keeping your cash stashed in your piggy bank, you might as well have the bank PAY YOU INTEREST on your savings balance.
Consider the following quote from Albert Einstein…
The bank will give you several options that pay you interest. Generally the quick options are to open a Savings Account or to put your cash in a Certificate of Deposit (CD).
Click on the image below to learn the pros and cons of each.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
We have all heard the saying from Benjamin Franklin that “a penny saved is a penny earned.”
But it seems that it is just so much easier to SPEND money than it is to SAVE money.
So how do we get started saving money?
Ahh….. That is the hard part…….getting started.
Click on the image below to read a great article that gives you 8 key points to help you start saving money immediately, to help you establish short-term and long-term goals, and to help you pick the right tools to save.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
At some point in your life you might find yourself in a situation where you need some cash quickly.
For example, you might have a doctor bill you need to pay. Or you might need to get your car repaired so you can get to work or you might have a rent bill or a tuition bill coming due.
If you don’t have any savings in an emergency fund, what would you do?
It is a situation that you hope you never find yourself in, but inevitably most of us do.
Click on the image below to read a great article that summarizes your choices, and the risk associated with each of those choices.
Pay attention to the left hand column that shows the progression from the “Lower Risk” to “Higher Risk” choices. A short Pop Quiz follows below the article.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
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Whether we like it or not, April 15 comes every year and that means our Federal taxes are due.
The average taxpayer spends over 10 hours preparing their taxes.
To reduce the burden of getting organized and preparing your taxes, it is important to stay organized and know what documents and forms you will need to collect throughout the year.
Click on the image below to review the forms and documentation you will need to make the process go as smoothly as possible.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Congratulations! You will soon be graduating from college and negotiating your various job offers.
You have worked hard to graduate and you deserve a great paying job.
But as you start to negotiate your offers, keep in mind that you really should be considering the overall compensation package. Salary is important, but so are things like location and commute to work, your health insurance costs, your retirement plan, and many other benefits that are being offered these days.
Click on the image below to review 9 different benefits that you should consider when selecting a job offer.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
A survey of the Class of 2019 showed that 69% had some form of a student loan.
While most student loans require you to start making payments within 6 months of graduation, there are certain instances where you can defer these payments.
Click on the image below to watch a brief video that explains the difference between loan deferment and loan forbearance. Even if you don’t have a student loan, it is important to understand the difference as it applies to most loans in general.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
If you have done your “rent a house” vs. “buy a house” analysis and you have decided to buy a house, your next thought should be “how much can I afford to borrow to buy my house?”
The answer is easy—it depends!
It depends on a lot of factors, so click on the image below so you can learn what factors impact how much you can borrow and how big of a monthly mortgage payment you could afford.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Once you have settled down after college and decided where you plan to live for a few years, you will be faced with the question: Should I continue renting or should I buy a house?
While there can be lots of pride in home ownership, it is not without hits drawbacks.
The following video walks you through the benefits and drawbacks of each option.
Click on the video image below to watch the short video.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Did you know that with most credit cards, if you pay the minimum required monthly payment you will end up paying more in interest than what you paid for your original purchase?
THAT is exactly how banks make money and that is why the retail industry promotes the use of bank credit cards and company-branded credit cards.
It is the power of compound interest. If you are investing your money, compounding works in your favor, but if you are borrowing money, compounding works against you.
Click on the video image below to learn how paying just a few dollars more a month on your debts makes such a big difference.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
It seems like a Catch-22. How can you start building your credit if you don’t have any credit to start with?
Well the truth is most banks will give college students and young adults a credit card with a very low credit limit. Then, if payments are made on time for the first few months, the bank will raise your credit limit and then you will be well on your way to building credit.
This helps you build your credit history which then helps to raise your credit score which then helps to lower the interest rate you will be charged on other loans you might get.
Click on the image below of the video to learn how to build your credit from scratch.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Once you have established credit with a bank or credit card company, it is important that you continue to build your credit history and that you keep it healthy.
Click on the video image below to reveal 5 things you can do to help build a healthy credit score and avoid common mistakes.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Most studies show that over 70% of Americans own at least one credit card and carry it with them when they go shopping.
Other studies show that most Americans carry an average balance of $6,200 on their cards and pay interest every month, but they DON’T know what the interest rate is that they are being charged.
Nor do they understand how their payment plan impacts their credit score.
Click on the image below to reveal 7 FACTS that you should know about using credit cards.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
The first question you have to ask yourself when you are thinking of making a purchase is: “Do I NEED this or do I just WANT it?”
Stopping at your local coffee shop every day and spending $2.70 for coffee for 270 days a year adds up to $729 a year. And that’s not counting the gas and the time you take to drive to get that cup of coffee.
Saving money is easier than you think and you will learn from this video how to get started and you will see how quickly it starts to add up.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Everyone needs to take a vacation every now and then.
Or at least travel to visit family and friends.
But for most people who aren’t full-time sales people who travel every week, travelling can be an expensive ordeal.
The good news is that it doesn’t have to be. If you know some of the secrets of airline and hotel pricing, you might be able to save up to 40% on airfare and/or hotels.
Click on the image below to reveal 5 money savings tips when you travel.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Here is one of the most common questions that people who are trying to get control over their finances ask: If I have a little extra cash, do I pay down debt or do I put the money in my savings account?
On one hand financial advisors tell us to stop paying high interest rates on our credit card balance.
But on the other hand they also tell us to make sure we have at least 3 to 6 months cash in our savings account (Emergency Fund).
So which is it?
The answer is easy, kind of.
Click on the image below to review 5 questions that will help you decided if you should pay down debt or save.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Over time, our society moved away from paying for goods and services with gold and silver to paying for things with cash. In the last two decades, we have been transitioning from paying for things with cash to credit and debit cards.
While these 2 cards may look the same, their features and uses are very different.
Knowing the differences between them and knowing when to use them appropriately is an important part of personal banking.
Did you know using one builds up your credit score and the other doesn’t?
Did you know if someone steals your card you may have liability on one card but not the other?
Click on the image below to learn the differences between credit and debit cards in terms of how they work, how they affect your finances, and the inherent security of each.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Hopefully by now you have a real checking account that you use to manage your monthly cash inflows and outflows.
But are you really using all the features that your checking account offers?
While there are lots of negatives associated with a checking account, likes ATM fees and overdraft charges, there are lots of really good features that they offer.
Are you using direct deposit for your paychecks?
Are you able to move money easily between your checking and your savings account?
Do you get alerts when your balances are low?
Click on the image below to review these 8 Tips to Get the Most Out of Your Checking Account.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Now that you are getting used to managing your checking, savings and credit card accounts as part of this virtual platform, it is time you think about opening real banking accounts.
But where do you begin?
What questions do you need to ask a bank to make sure you are getting the right accounts for you?
Click on the image below to learn about the 10 Questions To Ask A Bank When Opening a New Account.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
As you learn to save, become more aware of your personal finances, you will find yourself accessing your checking, savings, and credit card accounts more and more.
While most banks and credit card companies are willing to open up accounts for you for free, keep in mind that every company has to make money some how. So be aware of the various fees that your bank might charge you.
The common fees are usually when you do something wrong, like bounce a check or use the ATM too many times in a month.
But beware of other fees for just using some services that you assumed were free.
Click on the image below to learn about 7 Common Bank Fees.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
As you learn to save and become more aware of your personal finances, you will find yourself accessing your checking, savings, credit cards and other accounts online or via your mobile phone.
This means bookmarking your banks URLs, installing their mobile apps on your phone, and inevitably the hassle of remembering all of your logins and passwords.
While it is extremely important that you monitor your finances online, it is also important that you are careful and that you safeguard your private information and report any suspicious activity.
Click on the image below to learn 10 Important Online and Mobile Security Tips to follow.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
Once you get in the habit of saving money each month, the next question is where exactly to you put the money you are saving?
The obvious choices are to keep it in cash in your piggy bank at home or put it in a bank account.
Well here is a secret… Instead of keeping your cash stashed in your piggy bank, you might as well have the bank PAY YOU INTEREST on your savings balance.
Consider the following quote from Albert Einstein…
The bank will give you several options that pay you interest. Generally the quick options are to open a Savings Account or to put your cash in a Certificate of Deposit (CD).
Click on the image below to learn the pros and cons of each.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
We have all heard the saying from Benjamin Franklin that “a penny saved is a penny earned.”
But it seems that it is just so much easier to SPEND money than it is to SAVE money.
So how do we get started saving money?
Ahh….. That is the hard part…….getting started.
Click on the image below to read a great article that gives you 8 key points to help you start saving money immediately, to help you establish short-term and long-term goals, and to help you pick the right tools to save.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
At some point in your life you might find yourself in a situation where you need some cash quickly.
For example, you might have a doctor bill you need to pay. Or you might need to get your car repaired so you can get to work or you might have a rent bill or a tuition bill coming due.
If you don’t have any savings in an emergency fund, what would you do?
It is a situation that you hope you never find yourself in, but inevitably most of us do.
Click on the image below to read a great article that summarizes your choices, and the risk associated with each of those choices.
Pay attention to the left hand column that shows the progression from the “Lower Risk” to “Higher Risk” choices. A short Pop Quiz follows below the article.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!
PersonalFinanceLab is a gamified platform that focuses on engaging the student through interactive and experiential learning. The platform has a Budgeting game and a stock market platform, that allows the student to learn while doing, making mistakes and repeating the actions until they succeed, thereby learning and understanding the fundamentals of managing money and investing it.
In the last example, I had mentioned Opportunity Cost , which in itself is one of the fundamentals of money management. You have choices that are available to you, whether it be price versus quality or price versus functionality or price versus convenience.
In this edition, I want to discuss the value of money. By this I mean, before you spend your money, you have to recognize it’s worth. For every dollar that is spent, the student has to recognize the value of each dollar in terms of how long it took to earn it and whether the purchase made is the best “value” of your time.
In the Budgeting game the student will receive a paycheck every Friday. In this example, the student is paid $15 an hour, but after taxes they receive $246, which equates to $13.67 an hour.
Now for every purchase, when a student buys a product, they need to be thinking that for every $13.67 spent on bills or random products, it will take 1 hour of their time to earn that money. So if a student wants to buy a pair of sunglasses for $50. It would take that student nearly 4 hours to earn enough money to buy those sunglasses. Firstly are they worth the time taken to earn that money? What else could they have bought with that money (opportunity cost) and did they get the best price and value for their money (comparison shopping)?
Building on from students receiving a paycheck in the game:
Simple activities:
Print out a US map.
Research the minimum wage in 5 states plus their own and label them on the US map.
Research the state income tax in 5 states plus their own including the highest and lowest levels and label them on the US map.
Explain the difference between Total Earnings (sometimes called Gross Pay) and Net Pay.
List 5 thing that you would like to buy or have bought. Using the minimum wage in your state, calculate how many hours it would take you to earn enough money to purchase those products.
In the next edition we will discuss unlimited wants, limited earnings and how we can manage expectations of earning and spending through a Budget.
Want more examples? Check out our lesson plan library, or book a demo with our team to discuss how PFinLab can be used in your class!