Goal:

Your task is to educate your child about personal finance.

Role:

You are a parent of an 18 year old son who recently received his first paycheck.

Audience:

Your audience is your child.

Situation:

Your child was recently hired as a clerk at a local grocery store and experienced their first payday. He has come to you for advice on managing his finances.

Product:

Make a lesson of you providing him advice on how to manage his personal finances. 

Standards for Success:

Your lesson must include:

• A description of various ways to save and a recommendation from you on where, how and why your son should save.
• A description of how to keep good financial records and perform banking transactions such as witting a check, depositing, and reconciling a bank account.
• A description of various ways to perform financial transactions electronically.
• A description of the advantages and disadvantages of credit. Include information on creditworthiness and credit score.
• A description of how to make a budget.

please see the explanation below.

Step-by-step explanation

                                                                                      Financial management

1. Where, how, and why to save

You should eliminate and clear your debts first and ensure you are operating in a debt-free condition. Debts limit one potential to save and ensuring you have none can save your finances. Further, have clear savings goals you would like to achieve in the long run. Having a target keeps you focused and determined to achieve than just operating without a specific objective. Finally, focus on utility savings and cut off unnecessary expenses that deploy your finances. Besides, you can save in your mobile phone by linking your phone to specific financial institutions, and deposits or withdrawals may be done via your phone. Finally, the benefit of saving is to enjoy great security in your life since you have set aside money for emergencies and uncertainties.

 ii      Keeping financial records

Keep a record of receipts and transactions you perform within a particular duration for the right bookkeeping. Furthermore, have the right bookkeeping system that rhymes with your saving goals. Update any transactions you make immediately for future reference. Reconcile your bank statements and ensure they are similar to your manual bookkeeping for the monthly/yearly evaluation. 

iii      performing financial transactions electronically

Through an online bill pay by your bank, login to your bank's website and submit vendor's information to authorize your bank to transfer money to pay your bill electronically. The activity is conducted through mobile banking; also, through mobile banking, you can log in to your bank's website and log in to your portal for balance inquiries and bank statements. Deposit, withdrawal, and paying bills are enabled through mobile banking.

iv    Credit is advantageous since it gives you better credit card rewards if you remain loyal to clearing your debts. A better credit card enables you to be trusted and hence be able to access credits at any time and mostly high credit levels. Further, credits are vital for emergency fund back-up or in situations where you are held up in a financial dilemma; credit can help you. However, you may get trapped in several debts if you fail to clear some debts and thus affect your saving process. Similarly, some credits demand extra fees and so required to pay an added amount. A credit score is a numerical indication indicating your ratings within given credit score ranges. Your repayment history determines your credit score and hence influences your creditworthiness. If your credit score is high, your creditworthiness is also great, and you can thus enjoy credit facilities.

v      How to make a budget

First, identify your net income since you cannot budget for what you don't have. Second, have a record of your expenses and how you spend your salary. Eliminate expenses that are unnecessary and focus on essential and worth expenses. Further, set goals to keep you focused and on track; decide what you want to achieve with the budget. Make adjustments to your habits if you're going to achieve some budget goals. For instance, habits like taking alcohol on weekdays and going to expensive parties can change, and plan for an alternative way favoring your goals. Finally, keep an eye on your budget to ensure you are operating towards the right track and direction.