Understanding Personal Financial Literacy Concepts

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Personal Financial Literacy
Mrs. Chyko
 
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
 
Lots of jobs
People are spending money
Financial security is easier
 
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
 
Market Based
Value Based
Cost-Plus
 
Inflation REDUCES our purchasing power
As prices rise our income does NOT
Consumers cannot buy as much with the
same amount of money
 
Peoples needs and wants change
Need for different types of workers evolve
Technology changes
 
Hard skills are technical skills
Working machinery, nursing procedures
 
Soft skills are people skills
Communication, team work, leadership
 
The charge for  instruction at  a school
Community college, State college, Trade school
Government loans, grants, scholarships, job
 
Required  - Income tax, Social Security tax,
and Medicare tax
Optional – Insurances, Savings plan,
Retirement plan (401K)
 
Disposable – Income after Taxes are paid
Discretionary – Income after needs are met
 
Form used to process taxes
NO DEPENDENTS
Can be used by single and joint filers
 
Specific
Measurable
Attainable
Realistic
Time-bound
To help us think our goals through
 
Method of informing or persuading
consumers
Promoting and selling products
 
Media – TV, radio
Internet – Pop up windows
 Print – Newspaper, flyers
Direct – Sample of product
 
Define  problem or need
List options
Compare options
Make decision
Take action
Revaluate
 
 
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
 
 
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
 
YOU Pay for more than 50% of a persons
living expenses.
The individual cannot be claimed by anyone
else.
 
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.
 
Requires you to save money first!!
Income = Savings + Expenses
 
Determine the difference between actual and
planned dollar amounts.
 
Favorable Variance – Earn or save more than
planned and spend less
Unfavorable Variance – Earn or save less than
planned and spend more
 
Personal budget, checkbook, and current pay
stub
 
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
 
-
 
Regular pay
-
 
Overtime rate per hour
-
 
Overtime pay
-
 
Gross pay
-
 
Required deductions
-
 
Optional deductions
-
 
Net Pay
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Explore key financial literacy concepts including inflation, reflation, cost-push, and market-based values. Discover how inflation impacts purchasing power, the importance of adapting to changing needs and skills, and the financial aspects of education costs and taxation. Enhance your knowledge on managing income, expenses, and investments to achieve financial security.


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  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 someones 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

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