Chapter 3-6 Personal Finance Midterm

Examples of wants & needs

Examples of wants & needs

wants- a pet, the new IPhone

needs- water, roof over your head, clothing

goal setting

be specific, be realistic, have a clear time frame, help you decide what type of action to take

short-term, intermediate & long-term goals

short-term- can be achieved in fewer than two months

intermediate- take from two months to three years to achieve

long-term- require three or more years to achieve

goal achieving pyramid

goals- be specific

S + T + P- strategies (what you need to do), tactics (how), process (plan)

Habits- 2 weeks

Beliefs- don’t doubt yourself, be positive

Why is it important for me to achieve this goal?- list reasons and post them

What creates habits?

a trigger, a routine, and a reward

the purpose of financial planning

arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals. Can improve personal relationships

What influences financial planning?

family structure, health, career choice & age

The percentages of your monthly budget

expenses- 70%

savings- 20%

debt- 10%

calculations of annuity

amount depositing per week x 52 weeks in a year x number of years depositing

examples of goods & services

goods- automobiles, appliances, clothing

service- salon, car wash, lawn mowing

How do people pick careers?

through skills & interests, what motivates them

career testing types & purpose

personality tests, interest inventories, skills & value assessments is a way to learn more about how well a variety of careers might suit you

job fairs

a recruiting event in which employers and recruiters meet with potential employees and where job seekers find more about job openings at potential employers

employment agencies: how works, fees

a way to find a job

ways to create a resume

chose a resume format, add the right contact details, pay attention to your work experience, add the right skills for the job, keep your education short and to the point

handshakes: how to do & who initiates

handshake should be firm (do not shake fingers)

either a man or women can initiate the handshake

work related training

enables you to gain the skills you need to perform your duties while contributing to your organization

how/where to find a career/job

job advertisements, networking, job fairs, calling businesses, visiting companies, employment agencies

questions you would be asked on an interview, including illegal ones

Tell me about yourself

Why are you the best person for the job?

Why do you want this job?

What is your greatest strength?

What is your greatest weakness?

Illegal-

Age or genetic information

Gender, sex or sexual orientation

Religion

information you need to know for an interview

your resume, predict the job interview questions and prepare answers

job opportunities

job advertisements, networking, job fairs, calling businesses, visiting companies, & employment agencies

career vs. job

a job is work done mainly to earn money, while a career is a commitment to work in a field that is found to be interesting and fulfilling

reasons to change careers/jobs

company downturn, career advancement, better pay, different work environment, work-life balance, flexible scheduling and a positive culture

when to plan for retirement

as early as possible

difference and example of self directed job and highly structured job

Self-directed teams can be defined as self-managed teams that have more decision-making power than “just” self organizing

self-directed- interior design, real estate

highly structured- doctor, lawyer

When do you ask about salary and benefits during the interview process?

by the second interview

Dress for an interview, accessories, materials to bring

dress- dress professional & appropriate

accessories- avoid dangling earrings & arms full of bracelets, the more simple the better

materials- your resume

storing files

personal balance sheet

categories on a balance sheet and budget

determine what you own and what you owe, measure your progress toward your financial goals, track your progress, organize information required to file your tax return or apply for credit

calculate net worth & net pay

assets - liabilities = net worth

the length of time to keep each type of financial document

three to seven years

examples of assets and liabilities

assets- cash, real estate, personal possessions

liabilities- medical bills, college tuition, mortgage loans

money management strategies

make a personal budget, track your spending, save for retirement, plan to pay off debt

how values affect spending

influence all decisions he or she make including financial decisions

dispute resolution programs

provides conflict resolution services to neighbors and others having on-going conflict that is not currently in the courts (mediation)

examples of economic, personal, & social factors

economic- prices, interest rate, product quality

personal- gender, age, occupation

social- lifestyle, interests, hobbies

4 phases of Researching Consumer Purchases

Phase 1: Before You Shop

-identify your needs

-gather information

-be aware of the marketplace

Phase 2: Weighing the Alternatives

-Identify what is important to you

-Compare prices

-do comparison shopping

Phase 3: Making the Purchase

-Negotiate the price

-Compare financing options. Know the down payment

-Know the real price

Phase 4: After the purchase

-Follow maintenance schedules

-Investigate, evaluate, negotiate servicing options

-Estimate ownership costs

why fix a design flaw?

a flaw inherent in a product or good itself

examples of design flaws and how to fix them

airpods- never connect at the same time

set up better bluetooth connection

IPhone Screen- could break when dropped

make the rim of the IPhone taller

Starbucks cups- break all the time

make out of stronger material