1. Personal Financial Literacy

2. Income Disposable Income: Money after all taxes have been paid
Discretionary Income: Money after all necessities have been paid for (can be used on wants)

3. Creating a Budget
What do you want to save each month? Set it aside as soon as you get paid!
Determine FIXED expenses: Do not change from month to month (Examples??)
Estimate/Plan VARIABLE expenses: Can be adjusted by lifestyle (Examples??)
Plan for large expenses/purchases that may be approaching (Examples??)

4. Smart Buying Strategies
Gather information - use consumer magazines, ask friends, etc.
Use advertising, but be careful!
Comparison shop - visit stores, check flyers, magazines, ads, etc.
Utilize coupons and store specials!
Compare brand name with identical generic products
Look at “unit price” (price/volume)
Consider used products
Beware of “impulse buying”

5. Consumer Rights/Protections
Consumer Bill of Rights:
Right to a safe product - cause no harm
Right to be informed - no fraud or misleading information
Right to choose - variety of products
Right to be heard - listened to when laws are written
Right to redress - payment of product caused damage or financial strain
Protect Yourself:
Keep records/receipts of purchase
Consider buying a warranty (protection against a defective product…company will fix/replace)

6. Bankruptcy Bankruptcy: Inability to pay debts Options to Try First:
- Try to work out a payment plan with different creditors
- Consolidate debts (new loan to pay old debts)
Last Resort:
File Bankruptcy – new payment agreement with creditors; stays on your credit for 7-10 years; some assets could be liquidated
Bankruptcy:
Inability to pay debts

7. Insurance – Key Terms
Insurance: A practice by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment.
Insurance Agent: Person who sells and manages insurance policies
Claim: A demand for payment of the benefits as provided by the policy.
Deductible: Amount of money that you pay out of pocket before the insurance kicks in.

8. Insurance – Types
Health Insurance – Helps pay for routine doctor bills, prescriptions, and major medical procedures
Life Insurance – Pays to a benefactor to help cover deceased persons’ debts and burial costs as well as replace lost income

9. Insurance – Types
Auto Insurance – Provides money in the case of accidents (damage and personal injury)
“liability insurance” (pays for damage to others that you inflict)
“collision insurance” (pays for your own car’s damages)
Homeowner/Renter’s Insurance – Pays for damage to home or property due to accidents, burglary, etc.