(YFF) Your Financial Future Module Overview

Your Financial Future

Introduction 

So far in this class, you have studied the economies of various nations and people around the world. In this module, you will learn about economics using a more local and personal perspective. You will be learning how economics affects you! This module will focus on personal money management choices in terms of income, spending, credit, saving and investing. As we explore your personal money management choices, we will be using the six major topics identified by the Council for Economic Education to maximize your understanding of your financial future.

Center for Economic Education's Six Standards of Financial Literacy

  • Earning Income
  • Buying Goods and Services
  • Using Credit
  • Saving
  • Financial Investing
  • Protecting and Insuring

Module Lessons Preview

 In this module, we will study the following topics:

Show me the money

Creating money for yourself requires you to answer some self-reflecting questions. What are you interested in and what do you enjoy? Once you reflect, you can find a job that interests you. Utilizing your personal interests and skills will allow you to find an enjoyable job to help increase your personal wealth.

Saving for a rainy day

Saving for a rainy day is vital for unplanned emergencies. Making sure that you are bringing in more money than you are spending allows you to set aside money to create a rainy-day fund. This fund allows you to invest and increase your financial stability.

Key Terms

  1. Economics- the science dealing with the production, distribution and consumption of goods and services
  2. Savings- the money put aside to be used at a later date; money not spent
  3. Goods- thing or things for sale; wares
  4. Services- work in the service of others; useful labor
  5. Consumer- a person who uses anything grown or made by producers
  6. Producer- a person who grows or manufactures things that are used by others
  7. Budget- estimate of the amount of money that will probably be received and spent for various purposes in a given time
  8. Income- money that an individual earns
  9. Economists- people who study economics
  10. Wants-things desired
  11. Needs- things that are necessities
  12. Command Economy- economic system where all major decisions related to production, distribution and prices are made by the government or central authority
  13. Market Economy- an economic system in which decisions regarding production and distribution are based on supply and demand
  14. Mixed Economy- a mixture of command and market economies whereby some decisions are left to the market of supply and demand and others are made by the government, most prevalent form of economy
  15. Traditional Economy- economic system where resources are allocated by inheritance
  16. Capitalism- economic condition in which the means of production are owned primarily by individuals or private companies (the private sector)
  17. Socialism-economies where the government owns some or all the means of production
  18. Communism- an economic and political system in which most or all property is owned by the state or community as a whole and is shared by all
  19. Four Goals of Economics- efficiency, equity, stability, growth
  20. Efficiency- the ability to produce the effect or thing wanted without waste of time, energy or resources
  21. Equity- economic fairness or justice
  22. Stability- the average level of prices for goods and services remains steady
  23. Growth- an increase in the quantity of goods and services produced per person
  24. Unemployment- lack of employment; being out of work
  25. Consumer Price Index (CPI)-measure of the inflation rate; often used when discussing the "cost-of-living index"
  26. Inflation- the substantial rise of the average prices on goods and services
  27. Investment- the spending of money on something that is expected to yield money as income, profit or both
  28. Cost of Living- the average price paid for food, housing, clothing, transportation and other necessities by a person or family within a given period
  29. Price- the amount for which a thing is sold or can be bought, the cost to the buyer
  30. Risk- chance of loss
  31. Debt- something owed to another
  32. Credit Score- a number assigned to a person that indicates to lenders their ability to repay a loan
  33. Balance- the remainder of what is owed after a payment has been made on a debt
  34. Insurance- a practice or arrangement by which a company or government agency provides a guarantee of payment for specified loss, damage, illness, or death in return for payment of a premium
  35. Annual Percentage Rate- the interest rate charged on a loan; also known as the APR
  36. Résumé- a summary of a person's skills, interests, education, work experience, awards, etc. that person gives to a prospective employer

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