Life Skills: Financial Literacy Chapter 1

personal finance

the financial issues that affect individuals are collectively known as ______

life

personal financial planning includes planning your spending, your borrowing or financing, and your saving money to achieve the highest quality of _____ possible

liquid assests

_______ are things you own that can be very rapidly converted to cash without a risk of significant loss, such as a savings account in a bank

vehicle, cash, savings account

what are 3 types of liquid assets?

bankruptcy

________ a legal process in which a court takes over some of the finances of a person who is unable to pay his or her bills

opportunity cost

_______ the cost of pursing one option instead of another, expressed as the value of the activity you gave up.

-wants v. needs-rational decision-making-personal responsibility

What do you stand to gain from your knowledge of personal finance?You will be able to establish _____, ____, and take ____ for your actions.

short, medium, and long term goals

What 3 categories of goals should you plan for?

me

Who is responsible for judging the quality of financial advice that you receive?