| A | B |
|---|
| First step in making a decision | Identify the problem |
| Second step in making a decision | Gather information and list possible alternatives |
| Third step in making a decision | Consider the consequences of each alternative |
| Fourth step in making a decision | Select the best course of action |
| Fifth step in making a decision | Evaluate the results |
| Values | What is important to you and your family |
| Peers | People you know or associate with |
| Peer pressure | Can cause positive or negative behaviors |
| Habits | You are accustomes to doing it this way. We are called creatures of this. |
| Feelings | love, anger, frustration, rejection |
| Risks and consequences | What, or how much, you stand to win or lose |
| Spontaneity | Choosing the first option that comes to mind |
| Compliance | Going along with everyone else. |
| Procrastination | Postponing thought and action until options are limited |
| Agonizing | Accumulating so much information that analyzing the options becomes overwhelming |
| Intention | Choosing an option that will be both intellectually and emotionally satisfying. |
| Desire | Choosing the option that might achieve the best result, regardless of the risk involved |
| Avoidance | Choosing the option that is most likely to avoid the worst possible result |
| Security | Choosing the option that will bring some success, offend the fewest people, and pose the least risk |
| Synthesis | Choosing the option that has a good chance to succeed and which you like the best. |
| Consumer prices | Changes in the buying power of the dollar, inflation |
| Consumer spending | Demand for goods and services |
| Gross domestic product (GDP) | Total value of goods and services produced within the country |
| Housing starts | New homes being built |
| Interest rates | The cost of borrowing |
| Money supply | Funds available for spending in the economy |
| Stock Market Index | Indicate general trends in the value of U.S. stocks |
| Unemployment | The number of people without employment who are willing and actively seeking work |
| What a person gives up when making a decision is called: | Opportunity cost |
| Changes in the buying power of the dollar are measured by this: | Consumer price index |
| Time Value of Money | Measures financil opportunity costs using INTEREST calculations |
| Personal Risks | Embarrassment, inconvenience, safety or health concern |
| Liquidity risk | Investments that may be difficult to convert to cash quickly |
| Income Risk | Career changes or job loss can result in lower income and thus reduce buying power |
