| A | B |
|---|
| Define Consumer | A person or organization that uses a product or service |
| Define Debt | An obligation of repayment owed by one party to a second party in most cases: repayment includes interest |
| Define Financial Literacy | The knowledge and skillset necessary to be an informed consumer and manage finances effectively |
| Define Personal Finance | All the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. |
| Define Economy | A system by which goods and services are produced and distributed |
| Define Interest | A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal |
| Define Loan | A debt evidenced by a “note”, which specifies the principal amount interest rate and date of repayment |
| Define Credit | The Granting of a loan and the creation of debt; any form of deferred payment |
| Why should students should learn about personal finance? | Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future |
| Personal financial success is primarily the result of: | Managing your money behavior |
| What are Key components of financial planning include | Allow your financial planner to make all of your major money decisions |
| When it comes to managing money, success is about | 20 Knowledge, 80 behavior |
| What is the primarily widespread financial insecurity of Americans today? | The saving rate of Americans is low and many borrow in order to spend more than they earn |
| Why was the use of credit uncommon prior to 1917? | -Laws prevented lenders from charging high interest rates.-Borrowing money was generally not socially acceptable.-Lending money to others was not profitable. |
| When it comes to personal finance, the math is easy. What’s challenging is managing your ____? | Behavior |
| Explain why understanding your money personality is important when it comes to developing a money plan thatʹs right for you. | Understanding your personal strengths and weaknesses when it comes to money will help you manage your spending and saving behavior. |
| Explain how marketing can affect your decisions when it comes to spending money | We are bombarded with marketing ads that push us to buy things. Marketing also encourages us to ʺbuy now and |
| A person or business that offers loans at extremely high interest rates | loan shark |
| Pick one: An obligation of repayment owed by one party to a second party (debt, ownership) | Debt |
| Pick one: A person or organization that uses a product or service (borrower, consumer) | Consumer |
| Pick one: The granting of a loan and the creation of debt; any form of deferred payment (credit, annual fee) | Credit |
| The knowledge and skillset necessary to be an informed consumer and manage finances effectively | Financial literacy |
| Pick one: A system by which goods and services are produced and distributed (assets, economy) | Economy |
| Pick one: A fee paid by a borrower to the lender for the use of borrowed money. (bills, interest) | Interest |
| Pick one: A debt evidenced by a ʺnote, ʺ which specifies the principal amount, interest rate and date of repayment (bank fee, loan) | Loan |
