Personal Finance

1
Personal Finance

• What Does Money Mean to You?

2
Consider

• Money Management is a skill (it can be learned)
• There will always be people who have and people
  who do not have
• How well you take care of the money you make will
  have a big impact on your life
• Life is about choices

3
What is Wealth

• Assets Liabilities Net Worth

4
Assets

• Possessions that appreciate
• Real estate (sometimes)
• Savings account
• Retirement plans
• Investments
• Can you think of possessions that depreciate over
  time?

5
Liabilities

• Money you owe, called debts
• Mortgage on a home
• Car Loans
• Student loans
• Consumer credit

6
Ways We Can Use Money

• Spend
• Save
• Invest
• Donate

7
Risks Involved

• Spend acquire products and services that a
  consumer needs or wants
• Quality risk
• Choice risk
• Influence risk
• Future risk
• Credit risk

8
Risks Involved

• Save for use in the future
• Inflation risk
• Interest risk

9
Risks Involved

• Invest invest funds so they can increase in
  value over time
• Scams and frauds
• Liquidity risk
• Capital risk
• Reinvestment risk
• Timing risk
• Portfolio risk

10
Risks Involved

• Donate to help and assist others in need
• Scams and frauds
• Tax risk
• Misapplied funds risk

11
Money Management

• Money management is a skill, meaning that it can
  be learned.
• The first unit of this course will cover the
  basics of money management income, savings,
  budgeting, debt/credit, insurance, and investing