PERSONAL FINANCE FINAL

consumer
a person or organization that buys/uses goods or services
financial literacy
the knowledge and skills necessary to be an informed consumer and manage finances effectively
credit
the granting of a loan and the creation of a debt; any form of deffered payment
loan
a debt evidenced by a “note” which specifies the principal amount, interest rate and date of repayment (example: house mortgage)
debt
an obligation of repayment owned by one party (debor/borrower) to a second party (creditor/ lender)
interest
a fee paid by a borrower to the lender for the use of borrowed money
economy
a system by which goods and services are produced and distributed
personal finance
all of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.
false
learning the language of money is not that important because you will be able to depend on financial planners to manage your money
the use of credit is not socially accepted in the United States
Which of the following is Not a reason credit is marketed so heavily to consumers in the United States.
consumer credit could be profitable
During the Great Depression, New Deal policy makers came up with mortgage (home loans) and consumer lending policies that convinced commercial banks that
20, 80
When it comes to managing money, success is about _____% head knowledge and ______% behavior.
spending more money then what they actually have
Describe some of the mistakes Americans often make when it comes to money.
we need to know how to manage money so we aren’t in debt
Explain why understanding your money personality is important when it comes to developing a money plan that’s right for you.
yes, because I thought it was normal to be in debt
Does the History of Credit and Consumerism segment make you view the use of credit differently than you did before? Explain!
it affects it by, well it makes you want it cause of the advertisement.
Explain how marketing can affect your decisions when it comes to spending money.
no, it means you need to manage money
Does managing your money well mean that you cant have fun with your money? Explain!