Personal Finance

Define Personal Finance

• The study/practice of financial literacy.

• The study of global economic trends.

• Financial activities of large corporations.

• Managing business finances.

Personal finance is 20% _____ and 80% _____

• Savings; Investments

• Income; Expenses

• Debt; Credit Score

• Knowledge; Behavior

We want to do our best to avoid what?

• Working

• Budgeting

• Debt

• Taxes

What are the two measures of wealth?

• Real estate and Collectibles

• Income and Net Worth

• Stocks and Bonds

• Income and Tax Rate

Define Financial Literacy

• The ability to understand and manage personal finances effectively.

• The ability to read financial statements only.

• Having a high income.

• Investing in the stock market.

Define a Budget

• A type of investment strategy.

• A method for saving money only.

• A list of all possible expenses without income consideration.

• A financial plan for managing income and expenses.

Money flows out of your account in 3 main ways, what are they?

• Give, Save, Spend

• Savings, Investments, Loans
• Donations, Gifts, Payments
• Fees, Charges, Interest

What percentage of people actually do a budget each month?

• 10%
• 50%
• 35%

• 70%

The 1st component of a budget is what?

• Expenses
• Savings
• Income
• Investments

The 2nd component of a budget is what?

• Giving

• Revenue
• Savings
• Income