Transcript Personal Finance CEPx

PERSONAL FINANCE
Roshad
Barnes
4 BASIC ECONOMIC ACTIVITIES
Earning
Spending
Savings
Borrowing
FACTORS AFFECTING EARNING
 Career Choice
 Type of career
 Place of employment
 Ability to find employment
 Education level
 Skills
 Prior experience
 Ability to advance
 Type of career
 Job performance
 Workplace
 Career Choice + Ability to find employment + Ability to
advance = Earnings => Standard of Living
EDUCATION
 Higher levels of education equals increase in income, and a
lower chance of being unemployed
SPENDING
Spending- using money to purchase goods and
services
The way a person spends money determines
the value received and influences the
economy
 You’re going with the supply & demand infrastructure
we have
Market Economy
Scarcity- can not produce all goods and
services consumers want
RESPONSIBLE SPENDING
 Planning for the future
 Researching and planning purchases in advance and making
wise choices
 Considering opportunity costs and trade -offs that apply
SAVING
 Putting money aside for later use
 Money can be saved in a bank account and add interest
 Form of savings can determine the financial return you have
 Use your savings for:
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Emergencies
Recurring expenses
Future purchases
Financial goals
Retirement
 Benefits:
 Can potentially earn income
 Increase personal financial security
BORROWING
 Obtaining money, goods, or services at present in exchange
for the promise of a future payment
 “Buy now, pay later”
 Examples:
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CREDIT CARDS
Buying on installments
Payday loans
Cash advances
Layaway purchases
 Reasons:
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Emergencies
Convenience
Major Purchases
Sales/discounts