# Financial literacy: income and decisions (lesson 1)  (Page 6/9)

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Step 9.- Present Visual 3 , which have some guidelines to consider for how much of your take-home monthly income you might budget for various expenses.

Step 10.- Present Visual 4 , to decide whether a purchase is necessary.

Step 11.- Have students participate in a decision-making activity . Refer to Activity 3 . Students may participate in this activity either individually or in groups.

Explain to students that people usually can’t have everything they want and must make choices. To make a choice, they evaluate the benefits and costs of their options. The “opportunity cost” is what people give up in exchange for what they get.

Explain to students that we make choices every day. Ask them to consider their goals and then follow the steps in Activity 3 to make thoughtful decisions that will lead them to their goals.

## Visual 3.

Here are some guidelines to consider for how much of your take-home monthly income you might budget for various expenses:

• Housing (rent or mortgage) 20% to 35%
• Utilities (electricity, water, telephone) 4% to 7%
• Food (at home and away) 15% to 30%
• Family necessities (laundry, toiletries, hair care) 2% to 4%
• Medical (insurance, prescriptions, bills) 2% to 8%
• Clothing 3% to 10%
• Transportation (car payment, gasoline, insurance, repairs) 6% to 30%
• Entertainment 2% to 6%
• Savings 10% to 15%
• Try to limit your installment debts (car loans, credit card bills, other loans) to 10-20% of your monthly budget.

## Visual 4.

To decide whether a purchase is necessary, ask yourself these questions:

• Do I really need it?
• Do I really need it today? What would happen if I don’t buy it now?
• Can I meet this need less expensively?

## Activity 3: decision making

Define the problem . Offer students examples of problems with alternatives choices:

1. What to do this Friday night?
2. What next after graduation day?
3. How to spend the coming summer?
4. Whether to buy a car?

Consider the alternatives for each problem. For example:

Problem 1: Study, watch TV at home, get together with friends, go on a date.

Problem 2: go to graduate school, get a job.

Problem 3: Summer school, work, volunteer in the community, relax and do nothing.

Problem 4: New car, used car, continues to use public transportation, bike, or walk.

Identify the criteria (goals/values) that are important to you. Example: (good grades, fun, relaxation).

Evaluate each alternative in terms of your criteria.

Make a decision by choosing the best alternative.

To extend this activity, ask students to identify the “opportunity cost” of their decision. The opportunity cost is the value of the next best alternative, i.e., what they had to give up.

## Assessment worksheet

NAME: _____________________________________________________________

1. Match the following words with their definitions:
 ___ 1. Inflation A. Anything of value owned by a person, for example, cash, a house, a car, and stocks. ___ 2. Asset B. An increase in the general price level of goods and services; a decrease in the purchasing power of the dollar. ___ 3. Liability C. The amount of money an individual or business owes to someone else: a debt. ___ 4. Fixed expense D. An expense that you can control or adjust, for example, how much you spend on groceries, clothes, or long distance phone calls.
 ___ 5. Variable expense
• E. An expense that stays the same each month, such as rent or a car payment.

#### Questions & Answers

are nano particles real
yeah
Joseph
Hello, if I study Physics teacher in bachelor, can I study Nanotechnology in master?
no can't
Lohitha
where we get a research paper on Nano chemistry....?
nanopartical of organic/inorganic / physical chemistry , pdf / thesis / review
Ali
what are the products of Nano chemistry?
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
hey
Giriraj
Preparation and Applications of Nanomaterial for Drug Delivery
revolt
da
Application of nanotechnology in medicine
has a lot of application modern world
Kamaluddeen
yes
narayan
what is variations in raman spectra for nanomaterials
ya I also want to know the raman spectra
Bhagvanji
I only see partial conversation and what's the question here!
what about nanotechnology for water purification
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
what king of growth are you checking .?
Renato
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