Financial Literacy2

g

h

i

j

f

e

d

c

b

a

Liability(tr)

inventory-1

Asset (tl)

workers comp insurance-2

tools -3

sales tax-3

payroll-1

loans-4

intellectual property-4

furniture-2

​ (a)   is the knowledge of how to make ​ (b)   decisions with ​ (c)   . This includes preparing a ​ (d)   , knowing how much to save, deciding favorable ​ (e)   terms, understanding impacts to credit, and distinguishing different vehicles used for retirement

• Financial literacy
• smart
• money
• budget
• loan

Those with ​ (a)   levels of financial literacy are ​ (b)   likely to ​ (c)   less income, ​ (d)   an emergency fund, and open a ​ (e)   account than those with lower levels.

• higher
• more
• spend
• create
• retirement

is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods.

• compound interest

• simple interest

• principal

• rate of interest

g

h

i

j

f

e

d

c

b

a

credit car payments-3

vacations-2

wants (c)

car payment-2

emergency fund-1

Savings or Debt(tr)

retirement-2

mortgage or rent-1

shopping-1

Needs (tl)

A ​ (a)   plans for and ​ (b)   income and ​ (c)   over a specific time period. Businesses and ​ (d)   rely on budgets to track ​ (e)   and expenditures, but you might be most familiar with a budget as a tool for managing your finances

• budget
• tracks
• expenses
• governments
• revenues

Needs vs. Wants

All of your friends waited in line for hours to purchase the newest, hottest pair of tennis shoes ever created, but you didn’t get to join them. “But mom,” you protested. “I’m going to be the only one without these shoes. I NEED them!” Your mom didn’t give in. “They’re too expensive,” she said. “You’ll have to figure out a way to live without them.” Whether it’s the latest tennis shoes, a hot new video game, a smartphone or tickets to your favorite band’s concert, chances are you’ve had this conversation before. Often you say you need things, but let’s be honest here. Most of the time when you say you need something, you really just want it really bad.

Think about all of the major purchases you’ve made in the last six months. List them here:

1. _____________________________________________________________________________. 2. _____________________________________________________________________________. 3. _____________________________________________________________________________. 4. _____________________________________________________________________________. 5. _____________________________________________________________________________. 6. _____________________________________________________________________________. 7. _____________________________________________________________________________. 8. _____________________________________________________________________________.

Now, go back and circle all of the things from the list that were things you really needed, not just things you wanted. Chances are you have an awful lot of items that are not circled. When it comes to learning to spend your money wisely, you must learn to distinguish between your needs and your wants.

What is a need? A need is something you need in order to survive. You will not die if you do not have the latest tennis shoes, the newest video game or that $100 pair of designer jeans. You may however need a book for school, a special pair of shoes to play a sport or money to buy lunch.

What are some of the specific things you need?

_____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________

What is a want? A want is something you really wish you had, but you can still go through your day

Match the following

• variable

• addition, subtraction, multiplication, division

• equation

• letter used to represent an unknown quantity

• exponent

• used to show repeated multiplication

• constant

• a number that never changes in an equation

• operation

• a grouping of terms that uses an equal sign to show a relationship

Match the following

• y-axis

• The point on a coordinate plane where the x-axis and y-axis intersect. It is represented by the coordinates (0,0).

• origin

• The horizontal line running through the origin on a coordinate plane.

• data

• The vertical line running through the origin on a coordinate plane

• x- axis

• A collection of related measurements.

• coordinate

• A 2-dimensional flat surface used for plotting points, lines, curves, and regions. It contains an x and a y axis which intersect at the origin.