Vocab
a person or organization that uses a product or service
Consumer:
money owed to another person or company
Debt:
Save a $500 emergency fund
The First Foundation
If you have 1 twenty dollar bill and 1 one dollar bill how much money do you have?
21
financial debts or obligations(hint vocab word)
Liability:
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
Personal Finance
the granting of a loan and the creation of debt; any form of deferred payment
Credit:
Get out and stay out of debt
The Second Foundation
If you have 2 twenty dollar bills and 3 ones how much money do you have?
43
Personal Finance is __% head knowledge and __% behavior
20%, 80%
the percentage of principal charged by the lender for use of its money
Interest Rate:
the additional cost a lender charges for borrowing their money
Interest:
Pay cash for your car
The Third Foundation
If you have 2 tens and 2 one-hundreds how much do you have?
220
the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
Financial Literacy:
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Net Worth:
a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
Financial Plan:
Pay cash for college
The Fourth Foundation
A person goes to the grocery store. Their bill comes out to $47 and they pay with $50 what will they get in change?
3
After what war did the country enter the "Roaring Twenties"
WW1
anything that is owned by an individual, including money in the bank or investments
Asset:
the cost of goods or services; money paid out
Expense:
Build Wealth and Give
The Fifth Foundation
A person goes to the grocery store. Their bill comes out to $123 and they pay with $140 what will they get in change?
17
the stock market crashed in 1929 which led to
The Great Depression