Key Terms
Understanding the American Way
You and Money
What is personal finance
Becoming money smart

A person or organization that uses a product or service.

What is a consumer?


Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being.

What best describes how Americans are being outsmarted by banks and other lenders?


80% behavior, 20% head knowledge

What is the percent of success in managing money?


The knowledge and skill set necessary to be an informed consumer and manage finances effectively.

What is financial literacy?


Your natural instincts

What should you know when it comes to money?

The granting of a loan, creation of debt; any form of deferred payment

What is credit?


The saving rate of Americans is low and many borrow in order to spend more than they earn. 

What is the widespread financial insecurity of Americans?
All of the decisions and activities of an individual or family regarding their money; including spending, saving, and budgeting.

What is personal finance?


Savings or Spending

What are personality types in finance?


Money put into an account intended for growth.

What are investments?


An obligation of repayment owed by one party to a second party.  In most cases this includes payment plus interest.

What is debt?

The use of credit is socially accepted in the United States.

What is a reason credit is marketed heavily to consumers in the United States?


Learning to manage money at a young age can eliminate financial mistakes and promote huge financial benefits for the future.

Why should students learn about personal finance?


Money can buy happiness.

What it is that Americans are taught to believe.


Anything you owe; debt.

What is liability?

A system by which goods and services are produced and distributed.

What is economy?


The average amount of credit card debt per American family.  

What is $ 15,000


Managing your money behavior.

What does successful personal finance look like?


Anything of value that is owned by an individual.

What are assets?

An federally recognized, tax exempt organization such as a church, hospital, charity or a school that serves the public.

What is a non profit organization?


A fee paid by a borrower to the lender for the used of borrowed money; typically interest is calculated as a percentage of the original loan amount.

What is interest?


Credit had never been legal for lenders to charge interest rates high enough to turn a profit. 

Lending was not socially acceptable.

Lending was not profitable.

Why was the use of credit uncommon prior to 1917?


Learning the language of money.

Managing your behavior with money.

Have knowledge of basic math.

What are factors in becoming money smart?


A monthly plan for how you are going to save and spend your income.

What is a budget?


A debt evidenced by a "note" which specifies the principal amount, interest rate, and date of payment.

What is a loan?
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