Grades 6–8
Money Moves
Your money, your call
You are old enough now to make real money decisions: what to buy, what to skip, what to save. This book gives you the tools. You will build a budget, keep an account register, work out how interest helps you and how it costs you, and learn to see through the ads aimed at you.
Six lessons
- 1Build Your First Budgetp. 3
- 2Checking Accounts & Debit Cardsp. 5
- 3Interest & Why Credit Unions Are Differentp. 7
- 4Saving for Big Goalsp. 9
- 5Your First Jobp. 12
- 6Ads, Influence & Smart Spendingp. 14
Money Moves · 2Build Your First Budget
A budget is just a plan for your money. Every plan has two sides: income (money that comes in) and expenses (money that goes out). For example, say you get $10 allowance, $15 in birthday money, and earn $20 mowing a lawn. That is $45 coming in. If you spend $8 on snacks and $12 on a game, that is $20 going out. The goal is to spend less than you bring in so there is something left over.
Fill in your own monthly budget
Write in a dollar amount for each row that fits you. Leave a row at $0 if it does not apply.
| Money in | Amount |
|---|---|
| Allowance | $ |
| Gifts | $ |
| Earnings (chores, jobs) | $ |
| Other: | $ |
| Total money in | $ |
| Money out | Amount |
|---|---|
| Snacks | $ |
| Games & fun | $ |
| Clothes & shoes | $ |
| Other: | $ |
| Other: | $ |
| Savings | $ |
| Giving | $ |
| Total money out | $ |
Left over = money in minus money out = $
Money Moves · 3When the Numbers Do Not Work
Sometimes money out is bigger than money in. That is not a failure, it is information. A budget’s real job is to show you the gap early, while you can still do something about it.
Sort your expenses
A fixed expense is the same every month and hard to change. A flexible expense changes and is easier to cut. Write FI for fixed or FL for flexible next to each. Some could go either way; be ready to explain.
Phone plan your family pays
Snacks after school
A streaming subscription
Video games
Bus fare to school
Going out with friends
Close the gap
- How much is Devon short each month? $
- Which two flexible expenses would you cut, and by how much?
- Devon wants to keep saving $7 no matter what. Is that a good call? Explain.
- Name one way Devon could raise the “money in” side instead of cutting.
Money Moves · 4Checking Accounts & Debit Cards
A checking account holds money you use for everyday spending. A debit card is linked to that account. When you tap or swipe it, the money comes straight out of your balance. That is different from a credit card, which borrows money you have to pay back. The catch with a debit card: if you spend more than your balance, that is an overdraft. The purchase is declined, or, if you signed up for overdraft coverage, it goes through and you pay a fee. So it pays to always know your balance.
Keep an account register
Every time money moves, write it down and update the balance. The first two rows are done for you. Fill in the balance for the other four rows.
| Date | Description | Money out | Money in | Balance |
|---|---|---|---|---|
| 9/1 | Starting balance | — | $40.00 | |
| 9/3 | Movie ticket | $12.00 | $28.00 | |
| 9/5 | Babysitting | $25.00 | ||
| 9/8 | Snack | $4.50 | ||
| 9/12 | Gift | $20.00 | ||
| 9/15 | Phone case | $18.00 |
Answer in a sentence or two
- Your balance is $28 and you want to buy something for $35. What happens if you use your debit card anyway?
- Name one habit that helps you avoid an overdraft.
Money Moves · 5Debit, Credit, or Cash?
Three ways to pay, three different things happening behind the scenes. Knowing which is which keeps you out of trouble.
What is really happening
Fill each empty box with Yes, No or Sometimes.
| Cash | Debit card | Credit card | |
|---|---|---|---|
| Whose money is it? | Yours | Yours | Borrowed |
| When does the money leave you? | Right away | Right away | When you pay the bill |
| Can you spend more than you have? | |||
| Does it charge interest? | |||
| Does it build a credit history? |
Overdraft math
- Your balance after each purchase (leave the fees out for now; write a balance below $0 with a minus sign, like −$1): drink $ , sandwich $ , charger $
- How many purchases took your balance below $0?
- How much in fees? $
- Purchases plus fees: what did the afternoon really cost? $
Money Moves · 6Interest & Why Credit Unions Are Different
Interest is the price of using money. When you save, the financial institution pays you interest for keeping your money there. When you borrow, you pay interest to them. Example: put $100 in savings that earns 4% a year and you would have about $104 after one year. The extra $4 is interest you earned. Borrow $100 at 22% and you would owe about $122. That $22 is interest you paid.
Bank vs. credit union: what is the difference?
Each row is a pair. Circle the side that would matter most to you, and be ready to say why.
Because a credit union works for its members instead of investors, it can often pay a little more interest on savings and charge a little less on loans.
Money Moves · 7Interest Working For You and Against You
Same word, two very different outcomes. The side you are on depends entirely on whether you are the saver or the borrower.
Saving at 4% a year
How to do it: change the percent to a decimal (4% = 0.04). Interest = amount × 0.04. Then total = amount + interest. The first row is done for you.
| You save | Interest after 1 year | Total |
|---|---|---|
| $100 | $100 × 0.04 = $4 | $100 + $4 = $104 |
| $200 | $ | $ |
| $500 | $ | $ |
| $1,000 | $ | $ |
Borrowing at 22% a year
Same steps: 22% = 0.22. Interest = amount × 0.22. You owe = amount + interest.
| You borrow | Interest after 1 year | You owe |
|---|---|---|
| $100 | $100 × 0.22 = $22 | $100 + $22 = $122 |
| $200 | $ | $ |
| $500 | $ | $ |
| $1,000 | $ | $ |
Compare the two tables. On $1,000, how much more is the borrowing interest than the saving interest? $
In your own words, why do lenders charge more interest than savers earn?
Money Moves · 8Saving for Big Goals
Small goals take weeks. Big goals take years, and they need a different tool: compounding. Compounding means you earn interest on your savings, and then you earn interest on that interest too. Your money starts making money.
$500 saved at 5% a year, and never touched
The dark block is the $500 you saved (drawn short so the interest is easy to see). Each slice stacked on top is interest. Each new slice is a little bigger than the one before, because it is 5% of a bigger pile, including the slices you already earned. Compare year 1’s +$25 with year 10’s +$39. By year 10 the interest alone is $315, and you never added a penny.
How to work out one year
- Change the percent to a decimal: 5% = 0.05.
- Interest = starting total × 0.05. Year 1: $500 × 0.05 = $25.
- Ending total = starting total + interest. Year 1: $500 + $25 = $525.
- Next year starts where this year ended. Year 2 starts at $525.
Money Moves · 9Do the Compounding
Now you try. Follow the four steps from the last page, one year at a time. When you finish, check your totals against the chart.
Watch $500 compound at 5%
Round each answer to the nearest dollar. Year 1 is done for you. Copy each year’s ending total into the next year’s starting total.
| Year | Starting total | Interest = start × 0.05 | Ending total = start + interest |
|---|---|---|---|
| 1 | $500 | $500 × 0.05 = $25 | $500 + $25 = $525 |
| 2 | $525 | $ | $ |
| 3 | $ | $ | $ |
| 4 | $ | $ | $ |
| 5 | $ | $ | $ |
| Years 6 to 9 work the same way. We skipped ahead to Year 10. | |||
| 10 | $776 | $39 | $815 |
How much interest did the $500 earn in 10 years? $815 − $500 = $
Two savers
Who put in more of their own money? Work it out: months per year × years × dollars per month.
Rosa: 12 × 20 × $20 = $ Eli: 12 × 10 × $40 = $
Who do you think ends up with more? Use the word compounding in your answer.
Money Moves · 10Your Goal Ladder
Most people need three kinds of savings at once: something soon, something big, and something for emergencies. Splitting them up stops one from eating the others.
Three goals, three timelines
Months to go = cost ÷ save per month. If it does not come out even, round up.
| Goal type | What it is | Cost | Per month | Months |
|---|---|---|---|---|
| Short (under 6 months) | $ | $ | ||
| Medium (1 to 2 years) | $ | $ | ||
| Long (3+ years) | $ | $ |
The one goal that is not fun
An emergency fund is money you set aside for surprises: a broken phone, a lost jacket, a bike repair. It is boring until the day you need it, and then it is the best money you ever saved.
A surprise cost that could realistically hit me:
About what it would cost: $
If I saved $ a month, I would be ready in months.
Money Moves · 11Your First Job
Your first paycheck will be smaller than you expect. That is not a mistake. Money gets taken out before you ever see it, and knowing what those deductions are keeps the surprise from stinging.
What each one means
Hours to dollars
Gross pay = hourly wage × hours.
| Hourly wage | Hours a week | Gross pay for the week |
|---|---|---|
| $11.00 | 8 | $ |
| $12.50 | 12 | $ |
| $15.00 | 15 | $ |
Money Moves · 12Where Did It Go?
Take a real gross paycheck apart and see what is left. This is the single most useful piece of math in this book.
A two-week paycheck
Gross pay is $400. Fill in each deduction, then find net pay.
| Line | How to find it | Amount |
|---|---|---|
| Gross pay | — | $400.00 |
| Federal income tax | 8% of gross | $ |
| Social Security & Medicare (FICA) | 7.65% of gross | $ |
| State income tax (example) | 4% of gross | $ |
| Total deductions | add the three above | $ |
| Net (take-home) pay | gross minus deductions | $ |
Percentages cheat sheet for $400: 1% = $4.00 · 4% = $16.00 · 7.65% = $30.60 · 8% = $32.00
Answer using your numbers
- What percent of the $400 did you actually keep? (net pay ÷ $400 × 100, rounded to a whole percent) %
- You were counting on the full $400 to buy something. What do you do now?
- Why should you budget from net pay instead of gross pay?
Money Moves · 13Ads, Influence & Smart Spending
Companies spend enormous amounts to reach people your age, because habits formed now can last decades. The ads are not always obvious. A favorite creator using a product is an ad. A “limited drop” is an ad. Learning the techniques is how you stay in charge of your own money.
Match the tactic to what it is doing to you
Draw a line from each tactic to what it is doing. The meanings are mixed up.
Find three ads aimed at you this week
| Where you saw it | What it was selling | Which technique |
|---|---|---|
Money Moves · 14The 24-Hour Rule
Most regretted purchases share one thing: they were fast. Putting a day between wanting and buying is the cheapest tool there is, and it costs nothing to try.
Work it through
- Which techniques from the last page are being used here? Name at least two.
- Buying it drops your savings from $90 to $15. How much do you still need to reach $150? $
- Saving $10 a week, how many extra weeks does the hoodie cost you? (Round up.) weeks
- What would you tell a friend in this exact situation?
Write a spending rule you will actually follow
Fill in your own numbers. Example: “If it costs more than $25, I wait one day before buying.”
If it costs more than $ , I will
Why this rule fits me:
Money Moves · 15Check Yourself
Work through these without flipping back. Then check the pages if you get stuck.
Write the word from the word bank next to its meaning
- Spending more than your balance and getting charged for it:
- A plan for your money that lists what comes in and what goes out:
- What you take home after taxes come out:
- Earning interest on your interest, year after year:
- What you are called at a credit union, instead of a customer:
- The price of using money, paid to you when you save and by you when you borrow:
One money move you will make this month
Money Moves · 16Nice moves!
You built a budget, tracked an account, and did the interest math. Those are the same skills adults use, just with smaller numbers for now.
Fort McClellan Credit Union
Serving East Alabama since 1953.
fortmcclellancu.org
Teachers: request class sets and the free answer key.
Request class sets →Scan or visit fortmcclellan.getostrich.com/classroom
This workbook is provided for educational purposes only and is not financial advice.
Anyone who lives, works, worships, or attends school in Calhoun, Cleburne, Talladega, Clay, Randolph, Cherokee, Etowah, St. Clair, and Chambers Counties, Alabama, plus their family, can join.
Federally insured by NCUA. Equal Housing Opportunity.