Vocabulary
Percentage paid to a lender for the use of borrowed money
Interest
This ended the depression through government spending and consumption
World War II
Saves money endlessly, views money as security, fear of irrational spending, frugal
Compulsive Saver
What is the first thing you need to save for?
Emergency Fund ($500)
Personal finance is _________% behavior and ______% head knowledge
80%, 20%
The granting of a loan and the creation or debt; any form of deferred payment
Credit
This event/program created mortgage and consumer lending policies and convinced banks that consumer credit could be profitable (Hint:FDR)
New Deal
The Compulsive Spender
What is the second step?
Get out of debt
Where should you keep your emergency fund?
In a separate savings account than your spending money
Saving money over time for a large purchase (ex. prom dress, tux, car)
Sinking Fund
Around this time, credit laws were relaxed in an attempt to create a mainstream, profitable alternative to loan sharks for the working class
1920
Shares combination traits between savers and spenders, is smart with money for a certain amount of time, but may give into impulsive spending
Saver-Splurger
What do you need to pay for your car with?
Ca$h
Knowing the ____________________ of money allows you to tell your money what to do
Language
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
Financial Literacy
Before this year, people didn't buy on credit often
Late 1910s (1917)
Shares combination of traits between Spenders and Moneymakers, takes big risks, happy with financial wins but depressed over losses
Gambler
What should you pay for college with?
Cash
Interest pain on interest previously earned is what?
Compound Interest
The idea that increasing the consumption of goods and services purchased in the market is always a desirable goal
Consumerism
After what year did consumer debt skyrocket because people continued to borrow?
1970s - present
Believes life is better when you earn more, top priority is growing wealth and making more money, craves recognition for financial success
Compulsive Moneymaker
What are the two components of the last step?
Build Wealth and Give
World events such as the pandemic and the Ukraine war have affect supply and increased prices. This is called what?
Inflation