Studied by 4 people
Looks like no one added any tags here yet for you.
Financial Literacy
The possessions of a body of financial knowledge, a set of basic skills and the ability to apply knowledge and skills to making informed, responsible financial choices.
Personal financial planning
the process of setting financial goals and developing plans to reach them while meeting financial needs
Financial plan
an overview of an individual’s current financial position and strategies to meet future financial aspirations
Needs
are necessities that a person must have to survive
Wants
Things that a person desires but can live without
Consumer
an individual who purchases goods and services for his or her own use
Goods
tangible items that can be touched, used, and purchased such as food or clothing
Services
Intangible activities that another person usually performs for a fee
Values
are principles and beliefs that a person considers important
Value system
the overall structure of values and goals that guides a person’s behavior and provides a sense of direction in life
Ethics
the moral principles or beliefs that direct a person’s behavior
Priority
is a value or goal that is given more importance than other values and goals
Standard
an established measure of quality, value, or quantity
Resource
a supply of something that can be used when needed
Goal
is an objective to be attained in a specific amount of time.
Financial competence
having the ability to understand basic topics related to finance such as wisely making, spending, and saving money
Cost-benefit analysis
weighing the cost against the benefits of an action, a purchase, or a financial decision.
Marginal benefit
the change in total benefit of using one additional unit.
Marginal cost
the change in total cost of using one more unit
Law of diminishing marginal utility
states that the marginal benefit of using each additional unit of something tends to decrease as the quantity used increases
Trade off
the choice you give up when you make one choice over another.
Opportunity cost
is the value of the option you gave up
Systematic decision-making
is a process of choosing a course of action after evaluating available information and weighing the costs and benefits of alternative actions and their consequences
Economic conditions
are the state of economy at a given time
Recession
is a period of slow or no economic growth
inflation
is a period of rising prices
Interest
is the amount that is paid for using money
Demographics
are the statistical characteristics of a population
Culture
Is the beliefs, behaviors and other characteristics common among members of a group or society
Technology
is the application of science and research to human life and environments
Media
forms of communication designed to reach a large number of people
Entitlement
is a government program that provides financial benefits to eligible citizens based on their legal rights.
Globalization
the worldwide spread and integration of production, markets, communications, and technology
Personal Information management (PIM)
a system that individuals use to acquire, organize, maintain, retrieve, and use information
Management
the process of organizing and using resources to achieve predetermined objectives
What are examples of needs?
water, oxygen, food,
Wants
a expensive car, a mansion, new nail set
Types of resources?
human and nonhuman
What are the five steps of Systematic decision making?
1.Determine the decision to be made
Find ALL alternatives
Find BEST alternative
Act on it
Analyze solution
Note
Flashcard