Definition 1.1
What are priorities? A priority is a value or goal that is given more importance than other values and goals.
Priorities
S stands for smart financial literacy, make your goals clear and specific for effective
Specific
The life span is the time between birth and death. Creating a financial plan helps you manage your personal finances throughout your life span and learn to achieve economic self-sufficiency.
Budgets
What is a payment for work that is usually calculated on an hourly, daily, or piecework basis?
Wages
What are needs and wants? Needs are necessities a person must have to survive. Wants are things that a person desires but can live without.
Needs and Wants
M stands for smart financial literacy. Goals need to be measurable to track progress. This involves setting criteria for success.
Measurable
Income is any form of money received, such as an allowance, a paycheck, gifts, or gains from an investment.
Estimate and Total Your Income
What is the income received from employment, including self-employment?
Earned Income
What are Values? They are principles and beliefs that a person considers important.
Value
A stands for smart financial literacy. Goals should be realistic and attainable. Setting goals that are too ambitious can lead to frustration and demotivation.
Achievable
Pay yourself first is a personal financial strategy that can help you save money. By paying yourself first and putting money aside for savings, you begin building wealth for your future. The term wealth means an abundance of money and other assets.
Budgeting for Savings
What is a fixed payment for work, and is expressed as an annual figure?
Salary
What are some employability skills? These are the skills used to communicate and work well with others. These skills help an individual find a job, perform well in the workplace, and gain success in a job or career.
Employability Skills
R stands for smart financial literacy. Goals must align with broader business objectives. They should be pertinent to the business’s overall mission and strategy.
Relevant
Data analysis is the process of studying data with the goal of discovering new information that can help with making decisions. Performing data analysis on your estimated income and expenses is necessary in order to evaluate your budget.
Analyze Estimated Income and Expenses
A growing proportion of the US workforce is self-employed. Unlike employees, who perform services for their employer, self-employed people work for themselves.
Self-Employment Income
What is ethics? Ethics are the moral principles or beliefs that direct a person’s behavior.
Ethics
T stands for smart financial literacy. Every goal needs a target date. This creates urgency and prompts timely action.
Time-bound
A cash flow statement is a summary of the amount of money received and the amount paid for goods and services during a specific period.
Cash Flow Statement
what is an employee benefit, or fringe benefit, is a form of noncash compensation received in addition to a wage or salary. Compensation is wages or salaries and benefits paid to employees.
Benefits