Definitions
What is debt?
Money you owe
You should have _______ and _______ goals.
Spending & saving
OR
Short-term & long-term
Money is a ________. (4 letters)
Tool
Credit and debt are now ________.
Normal / Normalized
What is a loan?
Money you borrow
Borrowed money
You should have _______ and _______ goals.
Spending & saving
OR
Short-term & long-term
Someone who buys and sells things.
Consumer
Before the 1920s, loan sharks did this.
Preyed on desperate people from the working class.
Charged high interest on loans.
What is a credit score?
How you handle borrowed money
Debt "trustworthiness"
Something you build
What is a budget?
Something you make repeatedly (monthly, annually, etc.) and must follow. Tracks spending and separates it into categories with set $ amounts.
A system by which goods and services are produced and distributed
Economy
During the 1920s, the government passed credit laws to encourage ________.
Consumer spending and borrowing
What is using credit (not credit score)?
Purchasing something with borrowed money and deferring payment
Get now, pay later
Personal finance is ___% ________ and ___% ________.
80% behavior, 20% knowledge
What is a money personality? What are 2 possible money personalities?
Money personality = tendencies with money
The 2 possibilities are spender and saver, but it is a spectrum and most people are a mix of both.
For example, if you get a paycheck, what do you think of first, spending the money or saving the money.
What financial behaviors (of a specific generation) in the 1960s and 1970s contributed to an economic downturn?
Baby boomers spent and borrowed money like their parents did but weren't able to pay it back. Also inflation and not as many good jobs.
What is interest?
A fee charged when you borrow money
Give a *specific* example of opportunity cost for going to college.
Answers will vary!
What events/things helped the US economy recover from the Great Depression and why did this help?
WWII, New Deal policies
More jobs, more production, more spending