3.  Economics is the study of how we make decisions when resources are limited.  You must decide between what you NEED and what you WANT.

4.  Needs are things we need for survival, such as food, clothing, and shelter.  Wants are things we would like to have.

7.  The fundamental problem is scarcity.  When things are scarce, we do not have enough resources to produce all the things that we would like to have.  Because of scarcity, we must make choices among alternatives.

8.  Needs generally rank higher than wants.  Eating is more important than buying the most expensive clothing.  You must plan a budget in order to have economic security.  A budget is a personal spending plan.

9.  Economic choices should always be based on long-term benefits and costs.  When people consider only short-term satisfaction, they choose based on immediate gratification.  Future costs may outweigh present benefits, such as when one uses credit cards irresponsibly.  The cost of the future debt outweighs the satisfaction of the present purchase.

11.  Delayed gratification describes a person's ability to wait to obtain something that he or she wants.  This is also called is also called impulse control, willpower, and self control.  Many choose to buy on “Layaway”.

12.  A personal spending record keeps track of the money a person or household spends.  In order for this record to be accurate, you must know your exact income and be precise with actual spending.  Saving receipts or paying with a debit card helps to keep track.  Don’t spend more money than you have.

13.  Cash flow is cash that comes into or goes out of a person's account.  Cash flow can come from any number of sources and is crucial for a person's continued survival.  Cash inflow may come from wages, salary, sales, loans, or even personal gifts.  Cash outflow usually comes from expenses and investments.  It is crucially important to maintain a positive net cash flow as much as possible.

14.  Every economic choice has alternatives.  Opportunity costs are those things that economic choices make us give up, as a nation or individuals.  One a choice is made, something is sacrificed.