Intro to Personal Finance

Credit

• A person or organization that uses a product or service.

• The granting of a loan and the creation of debt; any form of deferred payment.

• An obligation of repayment owed by the borrower to the lender. In most cases this includes repayment of the original loan amount plus interest.

• A system by which goods and services are produced and distributed.

Financial Literacy

• The knowledge and skill set necessary to be an informed consumer and manage finances effectively.

• A fee paid by a borrower to the lender for the use of borrowed money. Typically interest is calculated as a % of the principal (original loan amount).

• A debt evidenced by a "note" which specifies the principal amount, interest rate, and date of repayment.

• All of the decisions and activities of an individual or family regarding their money, including spending, savings, budgeting, etc.

Interest

• The knowledge and skill set necessary to be an informed consumer and manage finances effectively.

• A fee paid by a borrower to the lender for the use of borrowed money. Typically interest is calculated as a % of the principal (original loan amount).

• A debt evidenced by a "note" which specifies the principal amount, interest rate, and date of repayment.

• All of the decisions and activities of an individual or family regarding their money, including spending, savings, budgeting, etc.

Personal Finance

• The knowledge and skill set necessary to be an informed consumer and manage finances effectively.

• A fee paid by a borrower to the lender for the use of borrowed money. Typically interest is calculated as a % of the principal (original loan amount).

• A debt evidenced by a "note" which specifies the principal amount, interest rate, and date of repayment.

• All of the decisions and activities of an individual or family regarding their money, including spending, savings, budgeting, etc.

An obligation of repayment owed by one party (borrower) to a second party (lender).

• Debt

• Credit

• Interest

• Personal Finance

A person or organization that buys/uses goods or services.

• Economy

• Consumer

• Debtor

• Realtor

When it comes to managing money, success is about ___% head knowledge and ___% behavior.

• 50, 50

• 80, 20

• 60, 40

• 20, 80

What is a budget?

• A type of savings account

• A way to invest for retirement

• A fund for emergencies

• A financial plan that defines expenses for a period of time.

What is an emergency fund?

• A savings account set aside for unexpected situations.

• A way to invest for retirement.

• Something most people don't need, because emergencies are rare.

• An investment account that can grow over time.

How many months of expenses should be set aside for an emergency fund?

• 3-6 months

• 6-12 months

• 12-18 months

• 1-3 months

Tags

CCSS.7.RP.A.3