Podcast
Questions and Answers
What is a consumer?
What is a consumer?
A person or organization that uses a product or service.
What is credit?
What is credit?
The granting of a loan and the creation of debt; any form of deferred payment.
What is debt?
What is debt?
An obligation of repayment owed by one party to a second party.
What is the economy?
What is the economy?
What is financial literacy?
What is financial literacy?
What is interest?
What is interest?
What is a loan?
What is a loan?
What is personal finance?
What is personal finance?
Assess your _______________ situation (your income, assets and liabilities).
Assess your _______________ situation (your income, assets and liabilities).
Set money __________!
Set money __________!
You must write out a detailed ______________ for accomplishing your goals.
You must write out a detailed ______________ for accomplishing your goals.
______________ your plan!
______________ your plan!
Know your money ____________.
Know your money ____________.
Regularly __________________ and reassess your financial plan.
Regularly __________________ and reassess your financial plan.
Replace money _______________ with money truths.
Replace money _______________ with money truths.
You don't have to spend more ___________ than you make just to look good in front of your friends.
You don't have to spend more ___________ than you make just to look good in front of your friends.
When you manage money, you'll experience deeper _______.
When you manage money, you'll experience deeper _______.
Personal finance is 80% ________________________ and 20% head knowledge.
Personal finance is 80% ________________________ and 20% head knowledge.
Money _____________ is easy - it's controlling your behavior that's the real challenge.
Money _____________ is easy - it's controlling your behavior that's the real challenge.
As you think about the '_____________' American family, remember that normal is broke.
As you think about the '_____________' American family, remember that normal is broke.
We like _______________ - lots of stuff!
We like _______________ - lots of stuff!
We are told that debt is ______________.
We are told that debt is ______________.
We are taught that we can __________ ________________.
We are taught that we can __________ ________________.
Our debt system keeps us from building ______________ because we are constantly giving our money away.
Our debt system keeps us from building ______________ because we are constantly giving our money away.
We want you to be ___________ of the financial condition of our country - and we want you to ___________ it!
We want you to be ___________ of the financial condition of our country - and we want you to ___________ it!
Knowing the ________________ of money allows you to tell your money what to do.
Knowing the ________________ of money allows you to tell your money what to do.
That means deciding where your money is going to go _________ you get your paycheck.
That means deciding where your money is going to go _________ you get your paycheck.
You'll be able to communicate effectively with _______________, financial planners, and insurance agents.
You'll be able to communicate effectively with _______________, financial planners, and insurance agents.
Focus on understanding the ___________________________ as you move through this course.
Focus on understanding the ___________________________ as you move through this course.
You'll become the ___________ on your money.
You'll become the ___________ on your money.
First, you need to be comfortable with ____________ ____________.
First, you need to be comfortable with ____________ ____________.
Second, you must start learning the ________________ of money.
Second, you must start learning the ________________ of money.
Third, you need to learn how to manage your _____________ with money.
Third, you need to learn how to manage your _____________ with money.
Winning with money isn't just about understanding how it works - it's about putting your _____________ into it.
Winning with money isn't just about understanding how it works - it's about putting your _____________ into it.
Money is a ________________.
Money is a ________________.
What is the best way to manage money?
What is the best way to manage money?
What should you know about your natural _____________ when it comes to money?
What should you know about your natural _____________ when it comes to money?
What should you develop once you know your money personality?
What should you develop once you know your money personality?
What does recognizing who you really are allow you?
What does recognizing who you really are allow you?
Which of the following is NOT a reason credit is marketed so heavily to consumers in the United States?
Which of the following is NOT a reason credit is marketed so heavily to consumers in the United States?
During the Great Depression, New Deal policymakers came up with mortgage (home loans) and consumer lending policies that convinced commercial banks that:
During the Great Depression, New Deal policymakers came up with mortgage (home loans) and consumer lending policies that convinced commercial banks that:
When it comes to managing money, success is about ______% head knowledge and ________% behavior.
When it comes to managing money, success is about ______% head knowledge and ________% behavior.
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Study Notes
Key Concepts in Personal Finance
- Consumer: An individual or organization that purchases goods or services.
- Credit: Refers to loans granted and the resulting debt, encompassing various forms of delayed payment.
- Debt: An obligation for repayment from a borrower (debtor) to a lender (creditor), often involving interest.
- Economy: A structured system for the production and distribution of goods and services.
Financial Knowledge and Skills
- Financial Literacy: The essential knowledge and skills needed to effectively manage finances and be an informed consumer.
- Interest: A fee incurred by a borrower for utilizing borrowed funds, typically a percentage of the principal amount.
- Loan: A documented debt that specifies the principal, interest rate, and repayment terms.
Personal Finance Management
- Personal Finance: Involves all financial activities and decisions made by individuals or families, including budgeting, saving, and spending.
- Goals: Establishing clear financial objectives is crucial for effective money management.
- Plan: A detailed scheme outlining how to achieve financial goals is necessary.
Steps to Financial Success
- Execution: Implementing the financial plan diligently is vital for success.
- Monitoring: Regularly reviewing and adjusting the financial plan helps maintain its effectiveness.
- Awareness: Understanding the economic context and questioning financial norms can guide better decision-making.
Understanding Money and Behavior
- Money Personality: Recognizing personal inclinations toward spending and saving informs better financial decisions.
- Behavior: Financial success is significantly influenced by behavior, accounting for 80% of the journey.
- Satisfaction: Effectively managing money leads to greater fulfillment in life.
Common Misconceptions and Realities
- Debt Normalization: The perception that being in debt is standard is a widespread misconception.
- Buying Happiness: Societal beliefs that purchasing items leads to happiness can inhibit true financial wellness.
- Financial Vocabulary: Grasping key terms related to finance enhances communication with financial professionals.
Financial Instincts and Growth
- Natural Instincts: Awareness of one's inherent financial instincts can be pivotal in developing a successful financial strategy.
- Opportunity for Growth: Self-awareness regarding one's financial personality fosters growth and learning in personal finance management.
Behavior vs. Knowledge
- Managing finances requires a balance of behavioral understanding and technical knowledge, with a greater emphasis on behavior.
- Financial success relies on personal accountability and proactive money management, rather than solely theoretical knowledge.
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