Vocabulary
goods
are tangible items that can be touched, used, and purchased, such as food or clothing.
what are needs?
Needs are necessities a person must have to survive
what is a goal?
is an objective to be attained in a specific amount of time.
what is Systematic Decision-Making?
is a process of choosing a course of action after evaluating available information and weighing the costs and benefits of alternative actions and their consequences.
entitlement
is a government program that provides financial benefits to eligible citizens based on their legal rights.
values
are principles and beliefs that a person considers important.
what are wants?
are things that a person desires but can live without.
what types of goals are there?
There are different types of goals, such as to be goals, to do goals, and to have goals.
what is step 1 ?
Define the decision to be made. You need a clear idea of the challenge in order to find the best approach.
what is Federal Trade Commission?
a protector of both consumer and business rights.
consumer
is an individual who purchases goods and services for personal use
what is Financial literacy ?
is the possession of a body of financial knowledge, a set of basic skills, and the ability to apply knowledge and skills to making informed, responsible financial choices
what are common financial goals?
Paying off debt.
Saving for retirement.
Building an emergency fund.
what is step 2?
Explore all alternatives. Analyze possible solutions to your problem. If you need to find an hour to exercise, identify and cut back on time killers.
Federal budgets typically change from?
year to year, as a result of the evolving economy.
ethics
are the moral principles or beliefs that direct a person’s behavior.
How do you start a financial plan?
Creating a plan starts with analyzing your needs and wants, values, and ethics
What are the four main financial goals?
stability, liquidity, profitability, and efficiency.
what is step 3?
Choose the best alternative. After considering all alternatives, decide which one best fits your situation
financial planning plays an important role in?
balancing the dependence on government programs and building future financial security.
Personal financial planning
is the process of setting financial goals and developing plans to reach them while meeting financial needs.
what is the difference between wants and needs?
A need is something that is needed to survive. A want is something that an individual desires, but would be able to live without
short - terms goals are?
setting a budget, reducing debt, and starting an emergency funds
what is the last two things you do ?
Act on the decision. Carry out your plan. For example, if you decide to rearrange your schedule, write a plan for the new routine. Follow it for a few days to see how it works, and Evaluate the solution or decision. Evaluation is an ongoing process. As you carry out your plan, evaluate your progress toward your intended goal
what are other economic conditions?
Fiscal and monetary policies affect prices and wages, availability and cost of credit, job opportunities and employment trends, growth and international trade, and a host