Unit 1: Financial Literacy

The possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.

• Financial literacy

• Budgeting

• Consumer behavior

• Consumer

The study of the role consumers play in an economic system.

• Consumer economics

• Anthropology

• behavioral economics

• Psychological economics

What are values?

• The reason for committing to a possible goal or task

• A consumer is anyone who buys or uses products.

• Going to seminars, buying books to learn about financial literacy.

• Doing what is right when no one is watching.

You decide what is right or wrong, good or bad, important or unimportant to you.

• Morals

• Ethics

• Guilt

• Values

The process consumers go through when making purchases and it involves factors that influence their decision and usage.

Constantly changing their minds (behavior) based on their life situations. Is an example of:

• Financial literacy

• 5 step decision making

• Consumer behavior

• psychological behavior

wanting to spend time with friends and family is an example of

• Work Value

• Life Value

• Social Value

• Cultural Value

security, environment, social relationships,

how much/little $$ you will make is an example of:

• Social Value

• Work Value

• Cultural Value

• Life Value

community service, wanting to help your community and “fellow man” to keep environment clean and be safe is an example of:

• Life values

• Cultural Values

• Social Values

• Work Values

Behavioral Economics is:

• is the study of psychology as it relates to the economic decision-making processes of individuals and institutions.

• The process consumers go through when making purchases and it involves factors that influence their decision and usage.

• The study of the role consumers play in an economic system.

• is a theory suggesting that environment shapes human behavior.