1. True
False

2. 1. What is an item that you would like to have, 
but cannot currently afford?
2. Assuming you are starting with no money and 
you cannot count on anyone else to simply give it 
to you, how will you go about saving enough for 
the item?
3. How long do you think it will it take you to save 
enough money to buy the item?
4. What are some other expenses you need to 
consider while saving up? Will you make any 
sacrifices?

3. Short-term goals
(less than 3 months to
reach)
Intermediate goals
(between 3 months and
a year)
Long-term goals
(more than 1 year)

4. SET GOALS ANALYZE INFORMATION CREATE & MAKE IMPLEMENT A DECISIONS PLAN
MONITOR &
MODIFY THE
PLAN
ANALYZE
INFORMATION
CREATE &
IMPLEMENT A
PLAN
MAKE
DECISIONS

5. Instant v. Delayed
Gratification

6. FINANCIAL PLANNING
1. What types of financial decisions might 
your family have to make?
2. Identify at least 2 potential unexpected 
events that might impact your family's 
financial planning.

7. Newly married couple in 20s; 
rent home; two full time jobs; 
no car (live in city)

8. Single parent with 2 
children, ages 3 and 7; 
own home; full time job; 
monthly car payment

9. self-employed, one working
Couple in 60s; one spouse
self-employed, one working
part-time; own home

10. Couple in 40s with 2 
teenagers, one of which 
is going to college next 
year; 2 monthly car 
payments

11. Single in 30s; rent apartment; anticipate layoff

12. Couple, both 18; just 
graduated; both have 
part-time jobs at the 
mall; rent apartment; one 
car payment

13. The Three C’s of Credit
Character includes name, address, phone number, social security
number, and date of birth.
Capital includes yearly salary and bank account information.
If you have a parent or spouse co-sign for the credit with you,
their information will also be included.
Capacity to pay includes other forms of credit you already have.
You will be asked to determine how much you currently owe. (i.e.,
other credit cards, home, car, and student loans that you still owe
money on).

14. Jamul, Amir and Sue each want to purchase a television that costs $500 and finance it with credit. Using the information below, how much would the television cost including finance charges?
Directions: Using the total amount spent, subtract the amount of the loan and that is the cost of credit.
Total Spent / Cost of Credit
A. Jamul paid $45.00 a month for 12 months. _________ / _________
B. Amir paid $12.00 a week for one year. _________ / _________
C. Sue paid $25.00 a month for two years. _________ / _________
Of the three loans, which one paid the most to borrow the $500 and which paid the least?

15. Imagine you are a loan officer at a financial 
institution, and you must decide whether to 
approve or deny loans for each of 4 applicants. 
Each applicant has applied for a $12, loan to 
purchase a more fuel-efficient automobile. You 
have been given 5 pieces of information about each 
applicant. Using this information, evaluate each 
applicant's ability and willingness to repay and make 
the best decision you can.

16. Applicant 1
Has 10 charge accounts
Address has not changed for 5 years
Has six children
62 years old
Owns stock
Approved?
Denied?

17. Applicant 2
Receives public assistance payments
Divorced
Pays bills on time
Works part-time
Female
Approved?
Denied?

18. Applicant 3
Annual income of $50,000
Married
Visa credit card payments are 1 month delinquent
Owner or is buying a home
Has an overdrawn checking account
Approved?
Denied?

19. Applicant 4
21 years old
Has no credit history
Has been on present job for 10 months
Has a savings account
Unmarried
Approved?
Denied?

21. (P = $1000) X (R = 10% or .10) X (T = 3 years) = I

22. Compound Interest Formula

23. 10% Interest

28. Most Common Types of Insurance

37. Consumer Protection Laws:
Warranties - Expressed or Implied
Fair Credit Reporting Act - free copy of credit report every 12 months
Fair Debt Collection Practices Act - bars debt collectors from using unfair and deceptive practices to collect overdue bill
Truth in Lending Act - credit card companies can't bill you more than $50 per card for unauthorized charges made to those cards