First Day of fin lit

-Possesing skills and knowledge on financial matters to confidently take effective action that best fits your goals

what if fin lit

-Possessing skills and knowledge on financial matters to confidently take effective action that best fits your goals

Why is it important?

-Only a third of U.S residents can answer basic questions about interest rates, financial risk, and mortgage rates

Personal financial plan

-What you want to do with your money, how to achieve goals, and how to protect those things

The Planning process *good exam question

The planning process part 2*

Goals

SMART

-Specific

-Measurable

-Attainable

-Realistic

-Timley

The planning process

Assess situation

Involves understanding your situation and choices it creates

Money

-Medium of exchange

-unit of account, meaning we can use it to record and measure the value of things such as someone’s income

Money not backed by anythung is fiat money

Money supply

all combines money in the economy

Inflation

relationship between money supply and inflation. If money supply isn’t managed carefully, inflation can get out of control

-General increase in the things we buy, not due to a change in demand