1. Citizens
and
The Economy

2. How do we contribute to the
economic common good??
Be productive!!!
What does this mean???

3. Your Economic
Responsibilities
 Work & pay taxes
 Spend your money wisely
 Save a portion of your income

4. Needs Vs. Wants
 Needs:  Wants
Anything that is necessary for Anything that makes your
your survival. life more comfortable;
however, you can easily
leave without.
Example: Example:
Shelter and Food iPod, Cell Phone, & Jewelry

5. Parts of a Budget
Spending & Savings
 A combination of one’s fixed and flexible expenses and
remaining disposable income
Investment:
 Anything that a person puts money into with the hopes
that the item increases in value over time.
Retirement
 Providing for yourself when you are no longer working.
Estate
 Planning for the smooth transition of property to
designated beneficiaries after one’s death.

6. Spending and Savings
Fixed Expenses Flexible Expenses
Payment will stay the same Payments will vary in amount
every month from month to month
Ex:
Ex:
 Electric & Heating Bill
 Rent
 Gas for your Car
 Mortgage Payment
 Groceries
 Car Payment
 Personal Entertainment
 Insurance Payment

7. Why do people
save money?
1. Major Purchases ex: buying a car
2. Large annual or semiannual
expenses…paying your real estate taxes
3. Unexpected Expenses…home repairs
4. Long Term Expenses…pay for your
retirement
5. Accumulate wealth

8. Benefits of Saving Money
Security:
 Money in a bank can not be lost…FDIC
insured!
Interest:
 A payment that financial institutions
make to you in exchange for the use of
your money while it is deposited.