Get Smart with Money
Personal finance
Setting money aside to be used later, if needed.
Saving
This is what we call people who purchase goods or services
Consumers
These expenses are for things you don't necessarily need (eating out, gifts, candy, video games).
Discretionary expenses
Types of institutions that rely on donations from others in order to operate. (E.g. churches, hospitals, schools, and charities)
Nonprofit Organizations
What percentage of personal finance is about behavior?
80%
Things that are purchased with an expectation that they will grow in value or produce income over time.
Investments
An unlimited amount of wants but limited resources (money).
Scarcity
These expenses remain the same from month to month (rent, internet, insurance).
Fixed expenses
First foundation
Save a $500 emergency fund
Debt
This is a fee you pay on top of money you already owe
What we call a plan for money/your spending
Budget
This card allows you to only use money you have in the bank
Debit card
Third Foundation
Pay cash for your first car
Emergency fund, purchases, and wealth building
These kinds of expenses change in dollar amount every month (utility bills, gas, groceries)
Variable expenses
This card allows you to use debt to buy stuff
Credit card
Fourth Foundation
Pay cash for college
The total value of a person's assets minus their liabilities
Net Worth
Two types of interest that help your money grow.
Simple & compound interest
These expenses occur at different times throughout the year and tend to be in large lump sums (tuition, car repairs).
Intermittent expenses
These are the four topics included in personal finance (how you go about making and using money)
Work, Spend, Save, Give
Build wealth and give