Day 66: Unit 4 Test

Day 64: Health Insurance

unit 4 review 

• Taxes
• Insurance

Final Exam Review

• Premium
•   cost of having insurance
• average for a 30 year old couple
• in a PPO is $640 per month 
• with $500 deductible
• 80/20 Co-pay
• Deductible
•    your share of payment before insurance kicks in
•    the higher the deductible the lower the premium
• Co-Pay
•    percentage you still pay even after insurance kicks in
•    most insurance is 80/20
•    insurance pays 80%
•    the higher the patient % the lower the premium
• Maximum Out-of-pocket
•    maximum amount you will need to pay in total up to Max Pay amount
•    higher out-of-pocket means lower premiums
• Maximum Payment
•    the maximum amount that your insurance will pay
•    should have at least $1,000,000
•    higher Max Pay means higher premiums
• Health Savings Account
•    high deductible / low premium insurance 
•    allows you to set up tax free savings account for medical payments
•    can shelter up to $5,650 each year from taxes in HSA account
• that money can be used to pay medical bills

Day 63: Intro to Insurance

Insurance:

Transfers your risk of a financial loss that you couldn't otherwise afford.

Do not take insurance on something you could afford to pay for.

Premium:

Cost to be covered.

Deductible: 

Amount you have to pay to cover loss before insurance kicks in.

If you have a higher deductible, your premiums will be lower.

Types of Insurance

Home

•   Guaranteed Replacement vs. Extended Replacement

Renters

•   Covers contents of your apartment or house you're renting

Auto

  Collision 

•     covers damage caused by you colliding into something

  Liability

•      covers damage you cause to others

  Comprehensive

•      covers damage to car not caused by a collision

Health

Disability

•      replaces part of your income if you are unable to work beacause of accident or illiness

Long-term Care

•      pays for costs if required to reside in a long-term care facility like a nursing home

ID Theft

•       "LifeLock" insures you against identity theft

Life

•       provides payments to your beneficiaries after you die to help them financially

Umbrella

• liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. When an insured is liable to someone, the insured's primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy).

Day 62 - complete 1040EZ

Bellwork:

• Finish Lady Gaga's 1040EZ from yesterday and answer the 2 questions on the bottom of the worksheet

Class Objectives:

• Fill out a 1040EZ Form

Today's Agenda:

1. Review a practice 1040EZs
• Lady Gaga
• Worksheet
• Blank 1040EZ
2. Complete a tax return ON YOUR OWN (DUE TOMORROW)
• Arnold Johnson
• Worksheet
• Blank 1040EZ (hard copy available)
• Submit to the digital drop box if you did online.  Give hard copy (WITH YOUR NAME ON IT) to me if you did it on paper.
3. Complete the following tax simulations:
• Cicely King- Using a W2 to complete a 1040EZ
• Tasha Miller- Using a W2 and 1099INT to complete a 1040EZ
• Monica Lindo- Completing a 1040EZ as a dependent

Insurance:

Transfers your risk of a financial loss that you couldn't otherwise afford.

Do not take insurance on something you could afford to pay for.

Premium:

Cost to be covered.

Deductible: 

Amount you have to pay to cover loss before insurance kicks in.

If you have a higher deductible, your premiums will be lower.

Types of Insurance

Home

•   Guaranteed Replacement vs. Extended Replacement

Renters

•   Covers contents of your apartment or house you're renting

Auto

  Collision 

•     covers damage caused by you colliding into something

  Liability

•      covers damage you cause to others

  Comprehensive

•      covers damage to car not caused by a collision

Health

Disability

•      replaces part of your income if you are unable to work beacause of accident or illiness

Long-term Care

•      pays for costs if required to reside in a long-term care facility like a nursing home

ID Theft

•       "LifeLock" insures you against identity theft

Life

•       provides payments to your beneficiaries after you die to help them financially

Umbrella

• liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. When an insured is liable to someone, the insured's primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy).

Day 61 - Practice 1040EZ

Class Objectives:

• Learn basic tax terminology
• Understand pay stubs and different tax forms
• Fill out a 1040EZ Form

Today's Agenda:

1. Read through the "All About Taxes" Google Presentation and:
• Fill out this Note Sheet (after you make a copy of it in your Drive)
2. Read through the "Take Home Pay" Google presentation and:
• Fill out this Note Sheet (after you make a copy of it in your Drive)
3. Review John Dough's Pay stub and:
•  complete this worksheet (after you make a copy of it in your Drive)
• If you need help, check out this example and explanations document
4. Read though the "Tax Forms" Google presentation and:
• Fill out this Note sheet (after you make a copy of it in your Drive)
5. Take a look at a W-4 form from the IRS website.
6. Make a copy of Dissecting a 1040EZ and answer all of the questions about this 1040EZ.
7. Use the information below to Practice filling out 1040EZs
• Harry Potter
• Worksheet
• Blank 1040EZ
• Tax Tables
• Lady Gaga
• Worksheet
• Blank 1040EZ
• Tax Tables

Day 60: Tax Forms

Bellwork:

• W-4 forms and allowances:  Learn more about these items by completing this online tutorial.

Class Objectives:

• Fill out a W-4 form
• Explain information from different sections of a 1040EZ

Today's Agenda:

1. Online W-4 Simulation
2. Fill out a W-4
3. Dissecting a 1040EZ

2016 Form W-4
This is for your employer. It tells them the number of allowances you are claiming

Form W-2
goes to you by month #2. Your employer gives this to you by February 1st of the following year. This tells you your income and deductions for the previous year.

Form 1099
If you work as an independent contractor, the company you work for will five this to you to let you know how much of your income came from them. They take out no deductions. You are responsible for all income taxes and both the employee and employer portion of FICA taxes.

Form 1099-INT
comes from bank. tells you how much interest you earned

Form 1099-DIV
comes from broker or mutual fund. tells you your dividend earnings.

Form 1040-EZ
This is the form that you use to file your tax return by April 15th of the following year.

2015 Tax Tables

Dave Ramsey’s $55,000 Financial Literacy Challenge is now open! This Challenge, sponsored by Zander Insurance, is a brief online money quiz and survey and gives high school seniors a chance to win a $40,000 scholarship. Yes, you read that right—$40,000—which can be used at any college the winner wants to attend! Other prizes for underclassmen and additional scholarships for seniors are also up for grabs.

Your students can access the Challenge at https://www.daveramsey.com/challenge?ectid=50.23.2821&teacher_email=mhaworth@leyden212.org

When students use this custom link, they will be included in your class performance metrics. You’ll automatically receive your class performance metrics* once the Challenge closes, and your students will also receive an individual score report via email after the Challenge ends.

Students will need to submit limited contact information so we can notify winners. This information will only be used to contact Challenge winners and will not be used in any way for future sales or marketing purposes!The Challenge ends Monday, April 25.  Best of luck to your students! 

Day 59: Taxes Notes

Gross Pay - Deductions = Net Pay (aka: Take-home Pay)

Required (Involuntary) Deductions:
  Federal Income Tax (determined by tax table)
  State Income Tax (3.25% in Illinois)
  FICA Taxes (Federal Insurance Contribution Act of 1935):
    Social Security Taxes (6.2% from employee and 6.2% from employer)
    Medicare Taxes (1.45% from employee and 1.45% from employer)

Voluntary Deductions:
  401(k):
     pre-tax contributions
     tax-deferred earnings
     possible employer match
  Insurance
     health, dental, life, long-term disability
  Charity
  Union Dues

Dave Ramsey’s $55,000 Financial Literacy Challenge is now open! This Challenge, sponsored by Zander Insurance, is a brief online money quiz and survey and gives high school seniors a chance to win a $40,000 scholarship. Yes, you read that right—$40,000—which can be used at any college the winner wants to attend! Other prizes for underclassmen and additional scholarships for seniors are also up for grabs.

Your students can access the Challenge at https://www.daveramsey.com/challenge?ectid=50.23.2821&teacher_email=mhaworth@leyden212.org

When students use this custom link, they will be included in your class performance metrics. You’ll automatically receive your class performance metrics* once the Challenge closes, and your students will also receive an individual score report via email after the Challenge ends.

Students will need to submit limited contact information so we can notify winners. This information will only be used to contact Challenge winners and will not be used in any way for future sales or marketing purposes!The Challenge ends Monday, April 25.  Best of luck to your students! 

Day 58: Intro to Taxes

Basics of Taxes

Everyone pays taxes in one form or another.  The government provides many services which could not be rendered without the flow of money that comes in from taxes. Understanding why and how you pay taxes is important so that you fully grasp your role as a contributing member of society.

50% of Federal Government spending goes to FICA:
Social Security: retirement payments for "old" people
Medicare: health insurance for "old" people

17% of Federal spending goes toward national defense

Progressive Taxes increase as income increases
Income taxes, FICA taxes

Regressive Taxes are a larger burden as income decreases
Sales Tax
Excise Tax
Gasoline
Cigarettes
Alcohol
Luxury Tax
Gift Tax
Estate Tax
Property Taxes
schools
libraries
park district
local roads
police
fire

Tasks:

1. What are taxes?  Let Taxman Max explain it to you!
2. Review the Taxes Notes

Resources:

5.3- Taxes and Government Textbook Pages

Day 57: Goal Setting

Create a smart goal for each of the eight dimensions of wellness.

Wellness is more than physical health, exercise and nutrition. It is the full integration of state of physical, mental and spiritual well-being.

• Physical Wellness
• Emotional Wellness
• Intellectual Wellness
• Social Wellness
• Occupational Wellness
• Environmental Wellness
• Spiritual Wellness
• Financial Wellness

Make sure it is yours. Write it down. Share it.

Definition of SMART Goals

Have you ever made a goal for yourself only to find that when it came to evaluate your goal, you really did not know if you met it or not? After the holidays last year, I made a goal for myself to lose weight by the spring season. When the calendar turned to May, I asked myself if I met my goal, and I honestly could not give a definitive answer because I had not made a SMART goal.

SMART is an acronym that helps individuals write meaningful and measurable goals. The letters of the acronym stand for specific, measurable, achievable, results-focused, and time-bound. Although SMART goals can be used in a variety of settings (business, personal use, etc.), they are often used in school settings for students. In this lesson, we will take a look at each of the components of the SMART acronym and practice applying the components to goals for students.

Components of SMART Goals

Specific: When writing goals for students, they need to be specific. This means that the goal should be well defined so that everybody on the educational team knows exactly the intended outcome for the goal.

Measurable: Writing a goal that is measurable is essential. A goal that is measurable means that data can be taken on the goal to provide evidence of it being met or not met.

Achievable: Goals for students should also be achievable. This means that the goal will challenge the student, so that it is worthwhile to work on, but that it is also a realistic task for the student to accomplish.

Results-focused: Results-focused means that the goal is measuring an outcome, not an activity or exercise.

Time-bound: A goal should always indicate a timed deadline for its outcome.

Writing SMART Goals

Now that we know the components of SMART goals, let's apply the acronym to an educational goal for a student. Here is a goal for a second-grade student that could use some SMART help!

'Bobby will improve his reading comprehension skills.'

A SMART goal would be written like this: 'Bobby will be able to read a 5-paragraph story written at a third-grade level and identify the story elements of setting, character, and plot in four out of five stories each week for five consecutive weeks by June 1, 2015.'

Do you see why this is a SMART goal? It is specific because it identifies the exact skill Bobby should be working on, much more so than simply stating that he will improve his comprehension skills. It is measurable because a teacher can take data on this goal and track his progress. It is achievable because it will challenge Bobby to read at the third-grade level, but this goal is not impossible as he is currently in second grade. It is results-focused because it measures an intended outcome, and it is time-bound because it identifies a specific date for completion.

Day 56: Getting to Know yourself

Ch 11 Text Book

You need to know who you are if you are asked to "Tell me about yourself."

• interests
• skills
• personality
• values

Learn about yourself through a variety of experiences:

• extracurricular activities
• part-time jobs
• volunteering
• hobbies

Learn about careers through:

• informational interviews
• job-shadowing
• internships

Try to match your career with who you really are.

Tasks:

Get to Know Yourself

Personal Interest Survey

Skills Assessment

Personality Test      

-  Careers by Personality Type


Read about a Path to Your Career


Choosing your future path can be overwhelming

• College is expensive
• Student loans are not free
• 30% of those who take out student loans don't graduate from college
• Student Loans are not good debt. There is NO "Good" debt.
• There is no guarantee that you will be able to pay off your debt after college.
• Graduating college is not enough
• Five years from now you will be exactly the same except for the Books you Read, and the People you Meet.
• Knowledge is the currency of our society.
• Show me your friends, I'll show you your future.

Day 55: Unit 3 Test

After Test work on EverFi:

You should have completed:

• Consumer Protection (2/5/16)
• Investing (2/19/16)
• Saving (3/4/16)
• Banking (3/18/16)
• Payment Types (4/8/16)
• Credit Scores (4/15/16)

Continue working on:

• Higher Education (4/22/16)
• Renting vs. Owning (4/29/16)
• Insurance and Taxes (5/6/16)

Day 54: - Unit 3 Review

Unit 3 Topics

1. What percentage of families live paycheck to paycheck?
2. For most people, what percentage of financial success is based on behavior?
3. Approximately what percentage of families will face a major financial emergency within any 10-year period?
4. With short term sacrifice, you get:
5. What is  delayed gratification?
6. Why might it not be a good idea to buy a home?
7. For which type of transactions must you have a credit history?
8. Why should you not go into debt?
9. Of the families that have debt, which type of debt is usually the largest?
10. Approximately how many credit card offers were made last year?
11. What types of techniques do credit card companies use to get you to sign up?
12. What are some of the costs of being in debt?
13. What’s the best way to get a car?
14. Why should you not by a new car with credit?
15. List several credit myths:
16. Compare and contrast the differences between a 15-year and a 30-year home mortgage:
17.  Compare and contrast the characteristics of debit and credit cards:
18. List and describe the Three C’s of Credit:
19. What does a FICO score measure?
20.  How can you buy a house without a credit score?
21. Which type of company gathers data and creates credit reports?
22.  According to what you learned in class, what must be true for you to use a credit card?
23.  According to 75% of the 400 richest people in North America, what is the #1 key to building wealth?
24.  According to what has been discussed in class, when is it ok to borrow money?
25. Why should you always pay cash?
26. What technique are credit card companies using when they market to 4 and 5 year olds?
27. What is the formula to calculate simple interest?

Credit

Credit Worthiness
-ability to pay back

Character
- credit history, work history, payment history, criminal record (credit report created by credit bureau like TransUnion shows your credit score. The higher your credit score the more credit worthy you are and the lower your interest rate will be)
Capital
- how much you own (cash and property) minus how much you owe
Capacity
- Income minus expenses
Collateral
- what they get if you don't pay back (house, car)

Credit Card Topics:
-Credit Limit
-Annual Fees
-Cash Back Bonus
-Annual Percentage Rate (increases if over limit of pay late)

What you should do:
- always pay in full each month and avoid interest (if only pay minimum, balance goes down very slowly)
- look for no annual fee with cash back bonuses (high annual fees can eliminate the benefit of cash back or travel rewards)
- stick to your budget


Debit Cards are not credit.












Final Exam Review Guide

Day 53: Credit Score Video 3.1

Bellwork:

• Budget Challenge
• EverFi
• Study for Unit 3 test

Intro to Debt:

• Watch Video 3.1 "The Credit Score"
• take notes as you watch (pretend you're the teacher)
• Answer these questions:
• How do you increase your credit score?
• What does a FICO score measure?
• How do you buy a house without a credit score?
• How do you buy a car without a credit score?
• What are the three C's of credit?
• Character
• Capacity
• Capital
• Watch Video 4.1 "Credit Bureaus"
• take notes as you watch (pretend you're the teacher)
• Answer these questions:
• What does a credit bureau do?
• List three credit bureaus:
• What is a credit report?
• How often should you review your credit report?
• Where do you get a free credit report?
• Here: AnnualCreditReport.com
• NOT here: FreeCreditReport.com

Millionaire that lives in a van.

Google employee lives in the parking lot.


How to Retire by 40.

Day 52: Credit vs. Debit Video 2.5 / 2.6

Bellwork:

• Budget Challenge
• EverFi

Intro to Debt:

• Watch Video 2.5 "Dubunking the Credit Myths"
• take notes as you watch (pretend you're the teacher)
• Answer these questions:
• What is the major differences and similarities between a debit card and a credit card?
• debt
• protection
• spending
• rewards
• Who is the #1 target for credit card companies and why?
• What is brand loyalty?
• What is kiddie branding?

• Watch Video 2.6 "Dubunking the Credit Myths"
• take notes as you watch (pretend you're the teacher)
• Answer these questions:
• Of those who dropout, why do most college students drop out of school?
• What is the #1 key to building wealth?
• What do you get if you have no debt and no debt payments?