Personal Finance Basics

an ongoing process that can take you from where you are to where you wish to be financially

• financial literacy

• financial planning

• financial security

the ability to meet your essential needs without taking on more debt than you can repay

• financial literacy

• financial planning

• financial security

the possession of a body of financial knowledge, a set of basic skills, and skills to make informed and responsible choices

• financial literacy

• financial security

• financial planning

process of organizing and using your resources to achieve predetermined objectives

• management

• resourcefulness

• budgeting

tangible items that can be touched, used, and purchased, such as food or clothing

• goods

• services

• needs

intangible activities that another person usually performs for a fee, such as cleaning services or tax preparation

• goods

• services

• wants

necessities such as food, shelter, love, and approval

• needs

• wants

• services

things that you would like, but they are not things that are essential such as a racing bike

• goods

• needs

• wants

beliefs about what is important and desirable and influences the way you live and think as well as your decisions and behaviors

• ethics

• values

• culture

overall structure of values and goals that guides your behavior and provides a sense of direction in your life

• financial planning

• value system

• personal financing