Decision Making
Knowledge of facts, concepts, and technological tools that are basic to being smart about money.
What is financial literacy?
The basic principles that guide our actions and beliefs.
What are values?
Needs to be adjusted for changing needs and goals in different stages of life.
Financial Planning
Currency, federal reserve notes (dollars), not backed by the gold sitting in a vault.
What is fiat money?
Using anything other than cash to pay for goods and services.
What is cashless society?
The study of how individuals and nations make choices about ways to use scarce resources to satisfy needs and wants.
What is economics?
Need to be realistic, have a target date, and if possible, an associated cost.
What are goals?
Expenses that remain CONSTANT month-to-month.
What is fixed expense?
Where paper money is made in the United States.
What is Bureau of Engraving and Printing?
Convenience, no risk and easier currency exchange.
What are advantages of cashless society?
You want to take marketing and graphic design - but you can’t take both?
What is opportunity cost?
Determine exactly when you will know that the goal has been met.
What is measurable?
Expenses where the amount can change month-to-month.
What is a variable expense?
Government agency that collects taxes.
What is Internal Revenue Services (IRS)?
Reduced privacy, exposure to cyber theft and higher risk of impulse spending
What are negatives of a cashless society?
Things that entice or motivate a buying decision.
What is incentives?
Giving up one thing for another.
What is trade-off?
The amount of income left over after basic expenses have been paid.
What is discretionary income?
Where coins are made in the United States.
What is U.S. Mint?
Capital gains, food stamps and interest earned on bank deposit
What are sources of cash?
The inability to satisfy all wants at the same time.
What is scarcity?
The amount of a good or service that consumers are willing and able to buy at a certain price.
What is demand?
Always set aside money every paycheck to go straight into savings.
What is pay yourself first?
The Bureau of Engraving and Printing, The U.S. Mint and The Internal Revenue Service are part of this agency.
What is The U.S. Treasury?
Exchanging goods or services with an individual to satisfy needs and wants without the exchange of money.
What is barter?