Updated 6/30/2015M7 U1 T3 Worksheet

Name: ______Date: ______Period: ______

Your First Debit Card

Congratulations! Because of your good behavior at school and at home, your parents have decided that you deserve an allowance. They have decided to give you $45 on the first of each month. Since it is the 21st Century, though, they are not going to give you cash. You get your very own debit card! Each month they will transfer $45 on to your debit card and you can use it for whatever you want!

Amount Overdrawn / Fee
$0.01 - $3.99 / $5
$4.00 - $7.99 / $10
$8.00 - $11.99 / $15
$12.00 or more / $25

The nice thing about having a debit card is that you do not have to carry around any cash. The bad thing, though, is that if you spend more money than is in the account (which is called overdrawing your account), you will get charged a fee by the bank. The schedule of fees that the bank charges is in the table to the right.

Because your parents have noticed you being more responsible lately, they think it is time for you to start paying your own cell phone bill. Therefore, you will have a monthly expense of $10.00 for your cell phone bill. This will need to be deducted from your account each month.

Step 1

Add up all the expenses for each month (making sure not to forget the cell phone bill every month) and fill out the table on the right. The expenses are as follows:

August
September
October
November
December

Every Month:

  • Cell Phone Bill ($10)

August:

  • New School Clothes ($34.85)

September:

  • Movie Tickets for you and your friend ($9.50 each)
  • Popcorn ($4.50), Soda ($4.25), and Candy ($3.75) at the Theater
  • Frozen Yogurt (12 oz. at $0.32 per oz.)

October:

  • Birthday Gift for Your Friend ($35.16 but you split it with another friend)
  • Pretzel at the Mall ($4.50, but you shared and split the cost with a friend)
  • Bought 3 songs on iTunes ($1.29 each)

November:

  • Take a friend to Starbucks ($3.55 for your drink and $4.20 for your friend’s)
  • Frozen Yogurt Twice (1st time –9oz., 2nd time - 8 oz., at $0.32 per oz.)

December:

  • Christmas gifts for 3 friends (2 of them cost $23.47each, 1 of them cost $19.73)
  • Bought 4 apps for your smartphone (2 cost $0.99, 2 cost $1.99)

Step 2

Fill out the table below through the month of December.

Month / Beginning Balance / Deposit / Total $ Spent / Total after Expenses / Did you incur any fees? (If so, include them here) / Ending Balance
August / $0 / $45 / $44.85 / $0.15 / $0 / $0.15
September / $0.15 / $45
October / $45
November / $45
December / $45
January / $45

Step 3

On January 5th, your friend comes to you and asks if you want to go with them to a concert. The concert is on January 22nd and you really want to go. But, your parents told you that they already give you an allowance for these things and are not going to pay for it. You have to find out if you will have enough money left over on your debit card to buy your ticket. Answer the following questions:

  1. How much money is left on your debit card after you have received your allowance and paid your phone bill for January?
  2. The ticket to the concert costs $30. Do you have enough money to go? If not, how much more money do you need?
  3. If you do not have enough money to go to the concert, but you buy the ticket anyway, how much of a service fee will you be charged?
  4. With that service fee (from question 3), how much will the concert really cost you? (How much will the ticket plus the service fee be?)
  5. Now go back to step one and fill in the line for January based on purchasing the concert ticket.

Step 4

Now that you have looked back on your finances for the past four months, you may have realized that you spent too much money on certain things which made it difficult to afford the concert ticket. Write a paragraph of at least five sentences, explaining how you might have spent money differently between August and December so that you could have afforded the concert ticket. For instance, you might say that you would not have bought popcorn in September because it would have saved you $4.50. Make sure you give a good reason for why you chose the things you chose. Don’t forget to include your calculations in your paragraph! (Hint: You might consider skipping a few different purchases in order to have enough money to buy the concert ticket.)

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Created by Hemet USD