Download presentation
Presentation is loading. Please wait.
Published byCecilia Evans Modified over 9 years ago
2
Income from work- wages (paid by hour or unit of production) or salary (paid weekly, monthly, yearly) Income from wealth- things you own- bank accounts, property, possessions, investments, etc. May rent property, earn interest, etc
3
Income- the more you have, the more you are likely to save and invest Expectations- if you feel good about the economy, you are more likely to spend more freely Current Interest Rates- higher rates tend to promote more savings Taxes- higher taxes on income and investment discourage people to save
4
Ability of customers to buy goods or services before paying for them based on an agreement to pay later When you use a credit card, you are actually borrowing money from a bank Charge accounts, credit cards, installment plans, car loans, home mortgages, etc Must repay the principal (original amt borrowed) and interest (amt charged for borrowing the principal )
5
Immediate possession Flexibility Safety (if lost or stolen) Emergency Funds Adds to Character references thru credit history
6
Overspending Higher costs – stores have to pay credit card companies to use their services, increase prices to pay for it Impulse Buying
7
Character- honesty, willing to repay debts Capacity/Capability- measure of your ability to repay debt- income, other financial obligations Capital- what you own- money in the bank, tangible property- the more you own, the easier it is to repay debts
8
Open a savings account- shows you are building capital Get a phone in your name and pay the bills on time each month Get a co-signer- someone with good credit rating that guarantees to pay off your loan if you cannot
9
Set financial goals- determine income and expenditures, may set goals to increase income or decrease spending- be realistic Estimate Income- list income sources- include job, gifts, interest earned, etc Plan Expenditures- list all that you are likely to buy or pay for over the time period of your budget; list what you plan to save; rank importance of wants
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.