Personal Finance Chapter 1 Week of September 16

Monday, September 16  Do Now:  Setting Goals  What guidelines should you follow?

Goal Setting

Collage Assignment Create a collage  Visualize your short term goal (1 year)  Your intermediate term goal (2-5 years)  Your long term goals (5+ years)  (3-5 of each) Due end of period today

Tuesday, September 17  Reminder:  Keep Track of your Spending and Income (due Thursday)  Open: Collage Assignment  Print and Hand in Assignment

Key Concepts Textbook: page 296 Budget Worksheet What’s the difference between:  Variable vs Fixed Expenses  Discretionary Expenses  Does Janet spend more than she makes?  How would you advise her to reduce her expenses?

Note Taking— Define Chapter 10 Section 1  Personal Financial Planning  Goals  Values  Liquidity  Service  Good  Consumer  Budget  Consumable goods  Durable goods  Intangible items  Interest Create a New Word Document Save as Chapter 10.1 Terms Bold term

Chapter What are the Guidelines for setting goals? 2. List the 6 steps to create a financial plan? 3. What factors affect personal financial planning?

Wednesday, September 18  Opportunity Costs Opportunity Costs  Time Value of Money Time Value of Money  Present Value  Future Value  Log on to Bankrate.com  Use College calculator and Retirement calculator to see present and future values in action

Thursday Do Now: Define:  Opportunity costs  Time Value of Money  Future Value  Present Value  Read Textbook: page 307 (chart)

Opportunity Costs  What is given up when making one choice over the other.  Give an Example:

Time Value of Money  The increase of an amount of money due to earned interest. Time Value of Money as it relates to opportunity costs: Spending money vs. savings Buying shoes for $100 vs. saving + interest

Future Value & Present Value Future Value The Worth at some point in the future of the amount you originally deposit today Present Value The amount you need to deposit now in order to have a desired amount in the future. Textbook: 307

Tracking Inflation  Workbook:  Page 9:  Website:  ator.htm  

How Can Inflation Affect Your Financial Plan? Inflation: The rate at which the general level of prices for goods and services is rising and the purchasing power is decreasing. Why is everything so expensive?

Time Value of Money  Bankrate.com  Visit bls.gov  Scroll to CPI Calculator  Enter $100—in year 1980?  asp

Thursday: Workbook exercises  Complete page 131  Chapter Vocabulary Activity

Page 131 Answer Key 1. B. Liquidity 2. C. Collect 3. A. Timed Value of Money 4. B. Personal Financia l Planning 5. D. Things you want to accomplish 6. A. Present Value 7. C. An Annuity 8. D. Estimate 9. A Interest 10. B. Good 11. C. Use Up 12. B. Future Value 13. D. A service 14. A. Consider 15. C. Values 16. B. Principal 17. A. Consumer

Workbook  Page 133  Page 143