Personal Financial Literacy Lesson

Personal Financial Literacy

This is a lesson to teach you about Human Capital, Labor, Income, and Scarcity.

Watch the videos, read the cards and check out the notecards to review important vocabulary.

What is

human capital?

Human capital is the skills,
knowledge, and experience a
person may have which shows
their value to a country or
organization.

Multiple Choice

Which of the following includes the knowledge, skills, education, and talent people bring to work?

• Capital resources

• Natural resources

• Financial capital

• Human capital

Okay…so…

what is labor?

Labor is the hard work, strong
effort, or struggle one performs
in order to complete a task that
pays the worker an income.

Multiple Choice

What is the work that a person does to earn an income?

• Labor

• Income

• Credit

• Salary

What is an

income?

Income is money received in
exchange for providing
a good or service. It might
also be called a salary, wage
or earnings.

Multiple Choice

What is income?

• The amount of bills a person pays monthly.

• The amount of loans a person borrows from a bank yearly.

• The amount a money an employer pays to an employee on a fixed basis.

• The number of hours an employee works per week.

​Availability

Having an abundant amount of goods and services compared to human wants.

​Scarcity

Not having an abundant amount of goods and services compared to human wants.

Multiple Choice

My mom wanted to bake an apple pie. There was a bad freeze this winter and most of the apple trees froze. The grocery store increased the price per pound of apples. What is this an example of?

• Scarcity

• Availability

You are the one using something that doesn't belong to you

You are allowing someone to
briefly use something of yours

Multiple Choice

To let out your property for temporary use understanding that it will be paid or given back

• Borrow

• Lend/Lender

​When we use credit, we are borrowing money from the bank. Banks will allow you to borrow their money as long as they get something in return....

​....sooo they charge interest. All credit cards require interest.

Multiple Choice

Which of the following best describe interest?

• Amount of money that is borrowed

• Amount of money borrowed that must be repaid

• Amount of money paid for a purchase

• Amount of money paid to a lender over time for the use of borrowed money

Multiple Choice

Which statement best describes a credit card?

• Money that is borrowed and does not have to be paid back

• Money that is given to people.

• Money that is borrowed and us usually paid back with interest.

• Money that people earn at their jobs.

​What are "expenses"?

​An "expense" is

the cost required for something; the money spent on something.

​What is a "plan"?

Kerri saved her money for 2 months to buy a new laptop. When Kerri went to the store to buy her computer, she paid in cash and did not have to use credit.

This was a planned expense.

​Examples of Planned Expenses:

--Groceries

--Rent/Mortgage

--Bills (Water/Electric/WiFi)

--Gas for vehicles

--Lunches

--Planned shopping trips like back to school

Multiple Choice

Which of the following best describes planned spending?

• Paying for goods or services that are expected

• Paying for goods or services that are expensive

• Paying for goods or services that are inexpensive

• Paying for goods or services that are unexpected

​What is "unplanned"?

Multiple Choice

Donald was driving one day when he got a flat tire. The tire could not be repaired and it had to be replaced.


Is this an example of unplanned or planned spending?

• Planned

• Unplanned

​Examples of unPlanned Expenses:

--Broken home appliances

--car repairs

--disasters that cause damages

--impromptu shopping trips

Multiple Choice

Which of the following best describes unplanned spending?

• Paying for goods or services that are expensive

• Paying for goods or services that are inexpensive

• Paying for goods or services that are expected

• Paying for goods or services that are unexpected

Multiple Choice

Mr. Sparks wrote down spending decisions on cards.

Which of the spending decisions that Mr. Sparks listed are unplanned spending?

• Car Payment, Rent and Groceries

• Medical Emergencies and Water Bill

• Medical Emergencies and Unexpected Home Repairs

• Rent and Unexpected Home Repairs