1. Personal Financial Literacy Mrs. Chyko

2.  Reflation - Occurs when prices are high, drop, and then rise to their previous level  Disinflation - Occurs when prices are rising, but at a slow rate  Hyperinflation - Rapidly rising, out-of-control price increases

3.  Lots of jobs  People are spending money  Financial security is easier

4.  Cost Push-The cost to create the product rises and is NOT offset by productivity  Demand Pull-Consumers want to buy more goods and services than producers supply  Real Cost-Resources diminish or become harder to get

5.  Market Based  Value Based  Cost-Plus

6.  Inflation REDUCES our purchasing power  As prices rise our income does NOT  Consumers cannot buy as much with the same amount of money

7.  Peoples needs and wants change  Need for different types of workers evolve  Technology changes

8.  Hard skills are technical skills  Working machinery, nursing procedures  Soft skills are people skills  Communication, team work, leadership

9.  The charge for instruction at a school  Community college, State college, Trade school  Government loans, grants, scholarships, job

10.  Required - Income tax, Social Security tax, and Medicare tax  Optional – Insurances, Savings plan, Retirement plan (401K)

11.  Disposable – Income after Taxes are paid  Discretionary – Income after needs are met

12.  Form used to process taxes  NO DEPENDENTS  Can be used by single and joint filers

13.  Specific  Measurable  Attainable  Realistic  Time-bound  To help us think our goals through

14.  Method of informing or persuading consumers  Promoting and selling products

15.  Media – TV, radio  Internet – Pop up windows  Print – Newspaper, flyers  Direct – Sample of product

16.  Define problem or need  List options  Compare options  Make decision  Take action  Revaluate

17.  List 5 characteristics of Time Management 1. PRIORITIZE 2. BREAK DOWN LARGE PROJECTS INTO SMALLER ONES 3. MAKE A TO-DO-LIST 4. USE A DAILY PLANNER 5. WORK WHEN YOU ARE MOST RODUCTIVE

18.  Economizing – save as much possible; spend only when necessary  Optimizing – spreading money as far as it will go. Get the most value for the money spent

19.  YOU Pay for more than 50% of a persons living expenses.  The individual cannot be claimed by anyone else.

20.  Personal goal – things you want to achieve  Financial goal – how you will pay for your personal goal  Financial Plan – Contains personal goals and a timeline for reaching these goals and methods you will use to finance them.

21.  Requires you to save money first!!  Income = Savings + Expenses

22.  Determine the difference between actual and planned dollar amounts.

23.  Favorable Variance – Earn or save more than planned and spend less  Unfavorable Variance – Earn or save less than planned and spend more

24.  Personal budget, checkbook, and current pay stub

25.  ID Theft - Act of using someone’s personal information without permission to commit fraud or crime  Phishing – Scam used to get individuals to give out personal information

26.  -Regular pay  -Overtime rate per hour  -Overtime pay  -Gross pay  -Required deductions  -Optional deductions  -Net Pay