Personal Financial Literacy Concepts
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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Presentation Transcript
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
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
- Regular pay - Overtime rate per hour - Overtime pay - Gross pay - Required deductions - Optional deductions - Net Pay
