Personal Finance
What is personal finance?
All financial decisions and activities of an individual or family.
Why is it important to start saving early?
Because it allows more time for compound interest to work
What is the main purpose of a credit score?
To indicate your creditworthiness to lenders
What is the primary purpose of marketing?
To communicate the value of a product or service to consumers
What is the Proximity Principle?
The idea that you should connect with people who are doing what you want to do
What is a zero-based budget?
A budget that assigns an expense to every dollar of income
What is compound interest?
Interest paid on both the principal and previously earned interest
What is Revolving Credit?
credit that automatically renews whenever a payment is made to reduce the debt
What is an impulse buying?
buying anything without planning to do so in advance
Why is it important to have a mentor?
To guide, support, and advise you in your career development
What is an example of a large purchase you might save for?
Answers may vary but could include a new car or college
What are the 3 basic reasons to save money?
1) Emergencies
2) Large Purchases
3) Building Wealth
What should you do if you suspect fraudulent activity on your credit card?
Contact your credit card company and report the fraud
What is a manufacturer’s warranty?
A promise from the manufacturer to repair or replace a faulty product
What does it mean to be a lifelong learner?
To continuously seek knowledge and skills throughout your life
Why is personal finance more about behavior than math?
Because financial decisions are influenced by personal habits and discipline
How does inflation affect your savings?
It decreases the value of your money over time)
What is predatory lending?
Lending practices that deceive or exploit borrowers
What does the term "opportunity cost" refer to? What does it mean
The cost of missing out on the next best alternative when making a decision
How can further education impact your career?
By leading to higher potential earnings and better career opportunities
What does it mean to have an irregular income?
Receiving income at different times and in different amounts
What is the concept that money available today is worth more than the same amount in the future?
Time Value of Money
Why is it important to monitor your credit report regularly?
To check for errors and signs of identity theft
What is a card skimmer, what does it do, where can you find them?
A device attached to a card reader that takes your card information. They can be found at ATMs and gas stations (pump or POS)
What is the main benefit of identifying your talents, passions, and values when choosing a career?
To find a career that aligns with who you are and what you enjoy