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unwise habit
behavior that is considered poor or detrimental to your well-being, often leading to negative consequences
sensible habit
practice that is considered thoughtful, beneficial, and promotes positive outcomes in your life
needs
things that are essential to your health and security
wants
things that make life more interesting and fun, but you can get by without
values that affect our thoughts, decisions, and actions
experiences, beliefs, family and friends
what does ‘s’ stand for in smart (goals)
specific
what does ‘m’ stand for in smart (goals)
measurable
what does ‘a’ stand for in smart (goals)
applicable
what does ‘r’ stand for in smart (goals)
relevent
what does ‘t’ stand for in smart (goals)
time-bound
short-term goal
0-3 months to achieve
medium-term goal
3 months to a year to achieve
long-term goal
more than a year to achieve
what does “shoot for the moon, even if you miss, you’ll land among the stars” mean
when saving money and setting a clear goal, even if you don’t achieve the original amount you were aiming for, you still benefitted yourself by saving money
what does the ‘d’ stand for in decide?
define
what does the ‘e’ stand for in decide?
establish
what does the ‘c’ stand for in decide?
choose
what does the ‘i’ stand for in decide?
identify
what does the second ‘d’ stand for in decide?
decide
what does the ‘e’ stand for in decide?
evaluate
delayed gratification
waiting to buy something until you know you can afford it
values
the idea and beliefs that are most important or most meaningful to you
instant gratification
deciding you want something and buying it right away
opportunity cost
the loss of potential gain from alternatives when one alternative is chosen
cash flow
the money flowing into your pockets as income and flowing out as expenses and debt
spending plan/budget
helps you manage your cash flow so you have the money to pay for the things you need (and want)
fixed expenses
expenses that cost the same every time- often a set monthly payment
variable expenses
common expenses where the amount is different each time, such as paying for groceries or gas
periodic expenses
expenses that aris occasionally during the year, usually less than once a month
emergency fund
gives you a money cushion when you’re sideswiped by a big, unplanned expense that might throw your budget off course
saving for 6-8 months
positive cash flow
when your income is more than expenses, resulting in a surplus of money at the end of a budgeting period (income > expenses)
negative cash flow
when your expenses are more than your income, resulting in a deficit of money at the end of a budgeting period (income < expenses)
zero-balance budget
a budgeting method where your income minus your expenses equals zero at the end of a budgeting period (income=expenses)
what does ‘pyf’ stand for?
pay yourself first
comparison shopping
the practice of comparing the price of products or services from different vendors before buying
income
the money you recieve
expenses
what you spend money on
spending log
a record of everything you spend money on and how much you spend each day
how much do teens typically spend weekly?
$18.50
‘pay yourself first’ fund
the first thing you should do when you receive money is to set aside a specific amount for your goals
first step in financial planning process
analyzing values, money management habits, and your financial situation
second step in financial planning process
set ‘smart’ financial goals
third step to financial planning process
plan when needs to be done with checkpoints and plan strategies to cope with unexpected events
fourth step to financial planning process
carry out your plan and track your progress using systems that work for you
fifth step to financial planning process
monitor and reflect on your progress; adjust your plan as your situation changes
