This document provides information on personal finance topics such as career choices, income, benefits, education costs, renting vs buying a home, home values, and developing a personal financial plan. Key points include: - Personal financial planning helps people achieve financial goals by teaching them to spend, save and invest wisely. Goal setting is the foundation, with goals classified as short, intermediate, or long term. - Education costs are an important factor to consider. Most students use loans, grants, scholarships or family money to fund education. Student loans offer advantages over private loans. - Renting offers mobility and fewer responsibilities than owning a home. Factors affecting rent costs include location, unit size, and responsibility for

1. Personal Finance
Q: How many of you have dreamed of
retiring and becoming a
multimillionaire by the time you are
40?
Q: How do you think you would
achieve that?

2. Personal Finance
• A. Personal Financial Planning can help you to achieve
these goals by teaching you to spend, save and invest your
money wisely, so you are able to live comfortably, have
financial security , and achieve your personal financial
goals
• 1.Unfortunately, most people never reach their financial
goals because, because they fail to plan
• 2. A Personal Financial Plan helps us to identify the
financial result we want, figure out how to get there, and
stay on track to achieve it

3. Personal Finance
• B. Goal setting is the foundation of personal financial
planning:
• 1. Learning to identify and set clear goals is key to your
success in life
• 2.Goals
• a. Short Term Goals are goals that you would like to
achieve within 3 months
• b. Intermediate Term Goals are goals that you would
like to accomplish within 3 months to a year
• c. Long Term Goals are goals that you would like to
accomplish over a year or longer

4. Personal Finance
• 3. Goals should be:
• a. Specific meaning goals should be clearly
defined
• b .Measurable meaning that you should have
tangible evidence that you accomplished the goal
• c. Attainable meaning goals should be achievable
• d. Realistic meaning goals should measure
outcome, not activities
• e. Time-limited meaning goals should be linked
to a time frame

5. Personal Finance
• C. The Financial Planning Process:
• 1. Set Goals
• 2. Analyze Information
• 3. Create a Plan
• 4. Implement the Plan
• 5. Monitor and Modify the Plan

6. Assess your current financial position
• Family Profile : No. of members, age and education levels, no.
of dependents and children, health status of family members
• Employment details : No. of working members and their
employment status, income, pension, health care and super
annuation benefits etc
• Income details : Current income and possible increase,
savings, FD, RD, investment in stocks & MF, Life insurance,
ULIP, pension etc
• Expenditure details : Living Expenses, utility charges, medical
costs, transporation, loan repayment, interest payment
• Insurance details : Life and health insurance, vehicle &
property insurance etc.

7. • Retirement Planning details : Superannuation benefits such as
gratuity, PF,leave salary, pension, investments etc.
• Estate details : Existence of will, PoA, Trust etc.

8. Define your Financial Goals Clearly
• Purchasing a new house for living and/or a car, Creating an
endowment fund for daughter’s marriage and/or children’s
education, going on vaccation etc
• Repayment of home loan, car loan, education loans or some
outstanding debt etc.
• Planning for retirement
• Fragment each of these financial goals into short term (1 yr),
medium term (1-3 years) and long term (5-10 yrs) goals
• Goals should be formulated in measurable terms

9. Define financial goals
• Financial goals are formulated based upon your
a) Current financial position
b) Earning capacity of family members
c) The life cycle stage you are in now
d) Future financial needs and wants

10. Design a Plan to reach ur goals
• Appropriate savings and investment plan
• Insurance purchase
• Emergency fund for contingencies
• Minimize ur taxable income
• Clear outstanding loans
• Retirement planning
• Estate Planning

11. Implement and monitor the plan
• Final step is to monitor and review the plan periodically
• Compare actual return with expected return at regular
intervals.
• This helps in tracking progress monthly or quarterly or at best
half yearly

12. Personal Finance
• D. The first step in your personal financial plan is choosing
an occupation (how you earn your living)
• 1. One can have a career or one can have a job
• 2. A Career-is a commitment to work in a field you find
interesting and fulfilling; a job is work you do mainly to
earn money
• 3. Your choice of career will affect the money you make,
the people you meet, and how much spare time you have
• 4. Having a college education does not guarantee that you
will meet your financial goals, however, acquiring more
education increases your potential earning power (the
amount of money you earn over time)

13. Personal Finance
• 5. Employment Search Strategies (how to look for a
job)
• a. Online Employment Sites- Careerbuilders.com,
Monster.com, etc.
• b. Job Fairs- at a job fair, recruiters from local, national
and international companies set up booths where you
can discuss job opportunities and submit your resume
• c. Employment Agencies-match job hunters with
employers
• d. Networking- Talking with people with similar career
interest

14. Personal Income
• A. The money you earn from your chosen
occupation or other sources is called income
• 1. Types of Income
• a. wages- paid by the hour (eg. $20.00 per
hour)
• b. salary- you receive a set amount of
payments (eg. $70,000 per year)

15. Personal Finance
• 2. Gross Income-is the total amount of income from
your wages/salaries before payroll deductions
• 3. Net Income- is the total amount of one’s income
after payroll deductions are deducted (Take Home Pay)
• 4. Discretionary Income-money you have left after
paying your essentials, such as rent, utilities, clothing,
transportation,etc.
• 5. Payroll Deductions- are money subtracted from your
gross income; the biggest deduction for most people
are payroll taxes

16. Personal Finance
• C. Benefits- non-cash compensation paid to
employees:
• 1. Many occupations have employee benefits
• 2. Benefits include the following
• a. Health Insurance
• b. Life Insurance
• c. Paid Vacation
• d. Pension (retirement plan)
• 3. Companies are not required by law to offer or
to pay for employee benefits

17. Assignments
• 1. Each student will choose 3 careers that
interest you. Go to Careerbuilders.com, and
find out the educational requirements and the
salaries for each career: prepare a paragraph
of your findings
• Due today…all late assignments will be
deducted by 25 points per day

18. Personal Finance
• d. The highest ranking women and minorities in
Corporate America are in non-operating areas
such as Human Resources, Public Relations, etc.
• e. Women and minorities are locked out of jobs in
the “business mainstream” that lead to executive
level positions
• Q? : What do think is the biggest barrier for
women and minorities to reach these executive
level positions

19. Personal Finance
• f. According to studies by Korn/Ferry
International, an Executive Recruiting firm the
biggest barrier is the “Old-Boy Network”, which
means that the male corporate leaders tend to
select people that are very much like them
• g. One study found that female executives
managed less people, had less freedom to hire
and fire, and had less direct control of the
company’s assets than their male counterparts

20. SECTION 1 PERSONAL FINANCIAL PLAN
Section #1
• A. Scenario: You are 25 years of age, and have been working at your current job or
profession for the last 3 years. You are single, no children and have been living at
home with your family, since completing your formal education (2-4 college
education, Technical school, or Trade School) and have saved $10,000. You’re
ready to move on. You have found an apartment, buying new furniture and a new
car. In addition to your savings account you have a checking account where your
monthly pay check is deposited into.
• B. You are putting together a financial plan to achieve your intermediate
goals/objectives
• 1. Employment-Research an occupation you are interested
• 2. Go to Salary.com and research the entry level salary for the specific job you are
interested in
• 3. To calculate your take home pay after taxes go to
www.adp.com/.../calculators.../payroll-calculators/salary-payc
• 4. Please keep a journal of your findings and also submit your findings for
homework…due date next class period…all late assignments will be deducted by
25 points per day

21. Personal Finance
• h. Globally, women make up 3.9% of Chief
Executive Positions, 8.5% of Operations
Positions(management), 17.5% of Financial
Strategy Roles, and 18.9% of Shared Services
(Human Resources, IT, etc.)
• i. Studies also found that African Americans,
Hispanics and Asians earn 21% less than their
white counterparts in the same job

22. Personal Finance
• B. How to break the glass ceiling
• 1. Women and minorities must be better than their
competition for promotions
• 2. Look at your company’s philosophy- if there are no
women or minorities in executive positions this is a bad
sign
• 3. Don’t waste your time- look for a company that
values diversity
• 4. If you have a lot invested stay and fight- unequal pay
and consideration for promotions is considered
discrimination under the civil rights act

23. Assignments
• 1. Research the average costs of a private/public
college education in the U.S. and choose one of
the following countries and compare/contrasts
the costs of a private/public education of that
country with the U.S. prepare a paragraph of your
findings
• Mexico Germany
• Japan U.K.
• Canada Australia
• Write a short paragraph of your findings

24. Personal Finance
• A. The second step of your personal financial plan is to
determine the costs of your education
• 1. Education is defined as the level of formal knowledge
and training one receives, post high school
• 2. Most students use student loans, grants, scholarships,
and money from parents, to fund their post high school
education
• a. Federal student loans offer many advantages private
student loans do not offer such as low fixed interest rates,
income based repayment options, forgiveness and
postponement options
• b. The current rate for student loans from July 1, 2014 to
June 30, 2014 is 4.66%

25. Section 2 Personal Financial Plan
• Section 2: Education: Research the college, technical school or vocational
school you plan on attending after graduating from GCIT
• 1. Research the total costs of your education (tuition, fee’s, door room,
meal plan, books )
• 2. Assume you are taking out a student loan to pay for your education; go
to student loan
• 2. Assume you are taking out a student loan to pay for your education; go
to student loan calculator.com, plug in the total amount of your student
loans , and calculate your monthly student loan payments after you
graduate
• 3. Keep a journal of your findings.. This is the second step of your Personal
Financial Plan
• 4. Add this information to your journal…also submit for homework…all late
assignments will be deducted by 25 points per day

26. PERSONAL FINANCIAL PLAN
A. Real Estate-is classified as land and anything attached to
it, such as buildings and natural resources
1. One major factor people make when considering housing
decisions is lifestyle (how you choose to spend your time
and money)
2. One basic consideration, about housing is whether to rent
or buy
3. Renting is a good choice for young adults who are beginning
their careers
4. Renting also appeals to people who want mobility, and do
not want to devote time and money for property
maintenance (mowing the lawn, shoveling snow, property
repair, etc.)

27. Personal Finance
• 4. When you rent the place where you live, you
become a tenant
• 5. The landlord is the person who owns the property
you are renting
• 6. When you rent a rental unit you sign a legal
document called a lease, which defines the condition
of the rental agreement between the tenant and the
landlord
• 7. Most people who rent live in apartments
• a. These units may be located in a two-story house,
high-rise building or an apartment complex

28. Advantages of Renting
• 1. Mobility – You can vacate/leave the property when your
lease ends, or if you find a job in another city, you can give
notice to your landlord and move quickly and simply
• 2.Fewer Responsibilities – Tenants are not responsible for
making major repairs or maintaining the property, that’s
the landlord’s responsibility
• 3. Low initial Costs- when you sign a lease, you normally
pay a security deposit, which is paid to the owner of the
property to guard against any financial loss or damage that
the tenant may cause
• a. When the tenant moves out , the landlord may return
the security deposit, minus any charges for damages the
tenant may have caused or for any unpaid rent

29. Factors that affect the cost of renting
• 1. Location- The amount of your monthly rent
will depend on the location, or neighborhood in
which you choose to live
• 2. Living Space- The size of the rental unit will
also affect the cost of a rental unit
• 3.Utilities- In some rental units, the tenant may
have to pay for utilities, such as electricity, gas,
water and trash
• 4. Renters Insurance- A type of insurance that
covers the loss of a tenant’s personal property as
a result of damage or theft

30. PERSONAL FINANCE
• A. Buying a Home
• 1. Few people have enough money to pay for a house in
full, so they have to finance it with a home mortgage loan
(long term property loan)
• 2. To buy a house also requires a down payment, which is
usually 20 percent of the purchase price
• 3. Homebuyers often use a real estate agent (person who
is licensed to facilitate the buying/selling of real estate) to
help them find a home
• 4. The Real Estate agents fee is normally paid by the seller,
not the buyer
• 5. You must 18 years of age to but real estate on your own
in the U.S.

31. Personal Finance
• B. Types of Homes
• 1. Residential Property is property in which an individual or
family lives in; there are 3 types of residential property:
• a. Single Family Homes- the most popular type of
residential property, is usually on its own lot, with it’s own
yard
• b. Multi Unit Housing- usually single buildings, divided into
individual units (eg. Condo’s, townhouses, duplex, lofts, etc.
• c. Manufactured Homes- There are 2 types of
Manufactured Homes, Mobile Homes and Prefabricated
Homes

32. Personal Finance
• A. Home Values- several factors affect the value
of a house including its size, condition, quality
and location
• 1. Location is extremely important
• 2. The distance between your home/work,
available public transportation, the quality of
the local school system and public services also
affect a home’s value
• 3. Home Equity-is the value of the property
minus the amount still owed for the mortgage
loan

33. Personal Finance
• B. Income Property- property used to generate income
• 1. With income property the owner generate income 2
ways, they can collect rent or sell the property for a
profit
• a. Rental Property- is any type of dwelling unit or
property rented for a length of time
• b. Undeveloped Property- is unused land intended
only for investment purposes; with undeveloped land
no rent is paid to the owner; the financial gain on this
type of property comes from the sale of the property
after it has risen in value
•

34. Assignments
• II. Groups: Prepare a PowerPoint presentation
. on the global housing market (including the
U.S.) within the last 10 years; include any
specific changes in the market, new
technologies in the industry, current status,
etc.
• 1. Due Date: 10/15/2014…no late assignments
accepted.

35. Section 3 Personal Financial Plan
• 1. Research apartment rentals in the State of New Jersey and choose an apartment
that’s within your budget (.30 of your Gross Income) include the following:
• a. Name/location of apartment
• b. Security Deposit (how much is required)
• c. Monthly rent
• d. What utilities are included
• 2. Research the costs of any utilities that you as a tenant would be responsible for
that’s not covered in the monthly rent; Gas, Electric, Water: If required to pay for
utilities estimate $125.00 monthly for gas and electric
• 3. Also research the costs of Cable Television Providers, Cell Phone Providers and
Internet Providers)
• 4. Estimate $12.00 per month for renter’s insurance
• 5. Journalize your findings for your personal financial plan, and submit for
homework…due date..next class period…all late assignments will be deducted by
25 points per day

36. Personal Finance
• I. Types of Taxes as individuals we know that we pay federal and
state income taxes on the salaries/and or wages that we earn
• A. Taxes are classified as:
• 1. Progressive Tax Rate are taxes that impose a higher tax rate on
those with higher incomes
• 2. Regressive Tax Rate are taxes that impose a higher tax with lower
incomes
• 3. Proportional Tax Rate imposes the same tax rate on all
regardless of income
• a. The U.S. has a Progressive Tax Rate
• b. The Progressive Income Tax is used as income redistribution,
meaning that the taxes paid by those earning higher incomes is
used to pay for social welfare programs such as benefits for the
elderly and retired, the sick or invalid, dependent survivors, single
mothers, unemployed, work injured and low income families

37. Personal Finance
• B. What is taxed in the U.S.
• 1. Personal Income Tax- your income
• 2. Sales Tax-goods/services you purchase
• 3. Property Tax-real estate
• 4. Wealth Tax- estate and gift taxes (estate taxes are
taxes on property one receives after someone’s death);
gift taxes are (taxes on money or property that you
give someone during your lifetime, it’s taxed on the
basis of its value)
• 5. Excise Taxes- are taxes on certain items such as air
fare, gasoline, alcohol, tobacco products and phone
service

38. Personal Finance
• A. Credit Facts
• 1. Nearly 33% of all teens owe money to either a person or
a company, with an average debt of $230.00
• 2.Approximately 30% of teens say they understand how
credit card interest works and the accompanying fees
• 3. Approximately 30% of teens say they know how to
establish good credit
• Q: How many of you have credit cards?
• Q: Is the card in your name?
• Q: If so, how did you get the card?
• Q: How long have you have it?

39. Personal Finance
• B. Credit- is an arrangement to receive cash, goods or
services now and pay for them in the future
• 1. Consumer Credit-is the use of credit for personal use
• 2. A common form of consumer credit is a credit card
account issued by a Financial Institution, such as (eg.
Banks, Credit Unions, Merchants, etc.)
• 3. Consumer credit is a major force in the U.S.
economy- (any analysis of the U.S economy includes
consumer credit spending which is a major force in the
economy)
• 4. Credit Cards enable consumers to make purchases
they may not be able to afford at the moment

40. Personal Finance
• A. Types of Credit- 2 basic types of credit
• 1. Closed-End Credit-is a one time loan that is
paid back over a specified period of time in
payments of equal amounts (eg. Vehicle loans,
mortgage loans, furniture loans, etc.)
• 2. Open-End Credit-is a loan with a certain limit
on the amount of money you can borrow for
goods/services (eg. Department store (Macy’s)
and bank credit cards (Visa, MasterCard, etc.)

41. Personal Finance
• B. Alternative Types of Credit Cards
• 1. Debit Cards- Let’s the consumer electronically
withdraw money from their checking/savings
accounts
• 2. Store – Value Cards (Pre-paid cards)- Cards
that are prepaid, providing the card holder with
immediate money
• 3. Travel and Entertainment Cards- (eg. American
Express) are not really credit cards, used primarily
for business, entertainment and travel; the
balance is due in full each month

42. Personal Finance
• C. The Language of Credit
• 1. APR (Annual Percentage Rate) the cost of using
credit; the amount of interest you pay annually
• 2. Credit Report is a detailed record of your
personal credit and financial transactions
• 3. Credit Score is a rating used by companies to
help lenders decide whether or not, and how
much credit can be extended to borrowers

43. Personal Finance
• A. Creditworthiness- Before financial institutions extend credit to
consumer they consider the applicant’s Capacity, Character and
Capital known as the “3 Cs of credit”
• 1. Capacity is the applicant’s ability to repay the loan
• a. To determine capacity lenders will verify the applicant’s
employment and income
• 2. Character shows whether he/she has proven to be trustworthy in
repaying debts
• a. To determine character they will check the applicants credit
report and ask for credit references
• 3. Capital is the amount of money the applicant has beyond debts
• a. To determine the amount of capital the applicant has, they will
look at the applicants savings account, checking accounts and
investments

44. Section 4 : Personal Financial Plan
• 1. Section 4: Assume you have excellent credit and are applying for
an auto loan
• a. Choose a new or used vehicle
• b. Research auto loans for people with excellent credit (Name
lender and interest rate)
• c. Your down payment will be 10% of the list price
• d. You will finance the car for 5 years
• Go to the following website to figure out your monthly payment
www.lendingtree.com/partners/autotrader/AutoHowMuchCalc.asp
• Journalize your findings for your personal financial plan, and submit
for homework…due date..next class period…all late assignments
will be deducted by 25 points per day

45. Section 5 : Personal Financial Plan
• 1. Section 5: Research credit cards and choose a credit card
that best fits your needs and include the following:
• 1. APR (Annual Percentage Rate)
• 2. Repayment terms
• 3. Application process for applying for the card
• 4. Annual Fees if any
• 5. Penalties for being over the credit limit or late payments
• Journalize your findings for your personal financial plan,
and submit for homework…due date..next class period…all
late assignments will be deducted by 25 points per day

46. Assignments
• Individual: Each student will research the
history of credit, credit cards and the 3 credit
bureaus and prepare a 2 page paper on their
findings….APA format, Abstract, Reference
Page, Running head
• Due Date 10/15/2014
• All late assignments will be deducted by 25
points per day…no exceptions

47. Groups
• Each group will choose a different country and
compare/contrasts the following:
• 1. Type of Tax (Progressive, Regressive or Proportional)
(Tax rate on families/individuals)
• 2. The different types of taxes that are imposed in
comparison to the U.S.
• 3. Include a brief history of the country, type of
government, political and economic
conditions/stability
• 4. Prepare a 7-8 PowerPoint, oral presentation,
individual names on slides
• 5. Due Date Oct.

48. Personal Finance
• A. Banking- one of the most important components
of a personal financial plan is managing your
finances
• 1. Today, with more than 11,000 banks, 2,000
savings and loan associations, and 12,000 credit
unions in the U.S., there is a vast array of financial
institutions to choose from to help manage your
financial needs
• 2. These financial institutions make money by
lending consumers and consumers money via loans
.

49. Personal Finance
• B. . Types of Financial Services- To remain competitive in the global marketplace, financial
institutions have expanded the range of products that they offer. These services are divided into 4
categories:
• 1. Savings (Time deposits) money that is deposited in an account for months or years
• Types of Savings Account
• a. Regular Savings Account- are good if you make frequent deposits and withdrawls; they require
little or no minimum balance; however the interest earned on these type of accounts are relatively
low compared to other savings options
• b. Certificates of Deposit (CD) is a savings option in which money is deposited for a stated period of
time, to earn a specific rate of return (interest); offers a higher interest rate than a regular savings
account
• c. Money Market Accounts type of savings account offered by banks and credit unions that pay
higher rates, have higher minimum balances than regular savings accounts; Minimum balance is
$1000-2500, and only allow 3-6 withdrawls a month
• d. U.S. Savings Bonds- (Patriot Bonds) are another savings option; you can purchase these bonds
from the federal government in amounts that range from $25- $5,000.00

50. Personal Finance
• 2. Payment Services- are the 2nd category of financial
services; the most commonly used payment services are
checking accounts
• Types of Checking Accounts
• a. Regular Checking Accounts- usually do not require
minimum balances
• b. Interest Earning Checking Accounts are a combination
of checking and savings accounts; these accounts pay
interest if you maintain a specific minimum balance
• “Many checking accounts offer overdraft protection, which
is an automatic loan to cover checks that the balance in the
account won’t cover”

51. Personal Finance
• 3. The 3rd category is Borrowing- If you need to borrow money, financial
institutions have many options for borrowing
– Auto Loans
– Mortgage Loans
– Personal Loans
– Student Loans
• 4. The last category of financial services are other financial services such
as financial planning services, income tax assistance, bond and mutual
fund investment assistance, etc.
– Financial Planning Services
– Income Tax Assistance
– Bond/Mutual Fund investment Assistance, etc.

52. Personal Finance
• C. Problematic Financial Institutions
• 1. Pawnshops
– Make loans based on the value of tangible possessions such as
jewelry or other valuable items
– Many low and moderate income families utilize these
organizations to obtain cash loans quickly
– They charge higher fees than other financial institutions
(interest)
– They have become the “neighborhood bankers” and the “local
shopping malls” because they provide both lending services
and retail shopping services, by selling items that the owners
do not redeem
– While most states regulate Pawnshop rates, 3% or more a
month is common

53. Problematic Financial Institutions
Cont’d
• 2. Check Cashing Outlets
– There are more than 6,000 check cashing outlets in
the U.S.
– You are not required to have an account with these
organizations
– They charge anywhere from 1-20% of the face value
of a check, however the average is 2-3%
– For low income families these rates can be a
significant portion of their household budget
– They also offer other services such as utility bill
payments, money orders, private postal boxes, etc.

54. Problematic Financial Institutions
• 3. Payday Loans
– Also known as cash advances, check advance
loans, and delayed deposits
– Interest rates range from 659-1300%
– These type of financial institutions have increased
in recent years due to the economy
– The most frequent user of these types of
institutions are workers who are trapped by debt,
or people who have been driven into debt by
misfortune

55. Section 6 Personal Financial Plan
• 1. Remember, you have saved $10,000.00 while living with your parents for the past 3 years.
• 2. Deduct from the $10,000 the amount of the security deposit for your new apartment the
amount of the down payment for your new car
• 3. Calculate your savings account balance, so far
• 4. Remember to “Pay Yourself First”, save at least 10% of your disposable income monthly;
Calculate how much of your disposable income you can save annually
• 5. Research and choose a financial institution and choose a checking account and a savings account
that they offer
• a. What is the name of financial institution
• b. What type of savings account is it
• c. What type of checking account (interest bearing, non interest bearing)
• c. What is the annual interest rate on this savings/checking account
• 6. Your paycheck will be directly deposited into your checking account for living expenses and 10%
of your monthly income will be deposited in your savings
• Journalize your findings for your personal financial plan, and submit for homework…due date..next
class period…all late assignments will be deducted by 25 points per day

56. Group Assignments
• Groups: Each group will choose two of countries and
compare/contrasts their financial institutions and the services they
provide to those of the U.S., include the following:
• 1. Types of personal accounts they offer to the consumer market
• 2. Types of Consumer Loans
• 3. Types of Business Loans Offered
• 3. Types of Financial Institutions
• 4. Alternative Financial Institutions
• 5. Related bank fees and charges
• PowerPoint Presentations, Oral Presentations, 7 slide minimum,
individual names on slides…
• Due Date 10/29/2014 All late assignments will be deducted by 25
points per day…no exception

57. Countries
• 1. Japan 8. Greece
• 2. Ireland 9. Switzerland
• 3. Mexico 10. China
• 3. Colombia
• 4. Germany
• 5. Brazil
• 6. France
• 7. Italy

58. Personal Finance
• A. Consumer Choices
• 1. When consumers purchase goods/services, they
usually decide what is a priority for them, and then
they will choose a brand name or generic product
• 2. Brand Name- is the trade name for a product or
service produced by a particular company (eg.
Kellogg’s, Nike and Pepsi, etc. )
• a. Buyers often associate quality with brand names
• 3. Generic Product- plainly labeled, unadvertised
products that are sold at lower prices than brand
name products

59. Personal Finance
• B. Deciding when to buy
• 1. Prices for many items change during different
times of the year, therefore postponing or
planning a purchase can sometimes save you
money (eg. You would save money if you bought
an air conditioner in the winter – there’s less
demand for them during that time of the year)
• 2. Stores often run special promotions during
and after holiday’s, just before the school year
begins, and at the end of a season

60. Personal Finance
• 3. There are 3 factors that affect a consumer’s
decision on where to shop: types of goods and
services sold, prices and convenience
• 4. Types of Stores
• a. Department Stores- sell a wide variety of
goods, (furniture, clothing, jewelry, etc.); brand
name products; prices may be higher than other
types of stores (eg. Macy’s, JC Penney’s, etc.),
because of some of the services they offer, (eg.
gift wrapping, personal shoppers, etc.

61. Personal Finance
• b. Discount Stores – also sell a variety of goods,
but at lower prices; sell goods at lower costs
because they offer fewer services and keep a
large quantity of goods in their inventory ( eg.
Wal-Mart, Kmart, Target, etc.)
• c. Off-Price and Outlet Stores- carry well known
brand names at a bargain prices; they offer big
discounts because the items may have flaws, out
of season or discontinued (eg. T.J. Maxx, Stein
Mart, etc.)

62. Personal Finance
• d. Limited Line Retailers (Specialty Stores) sell an
assortment of goods in 1 product line (eg. Foot
Locker, Kay’s Jewelry Store, etc.)
• e. Superstores-are like supermarkets but sell
items such clothes, books, sporting goods etc.
(eg. Wal-Mart, etc.)
• f. Convenience Stores provide easy access to
products that consumers buy often or as a
necessity; the world’s largest chain of
convenience stores are run by 7-Eleven

63. Section 7 Personal Financial Plan
• Section 7: Go online and choose any furniture store and
provide the following:
• 1. Choose furniture to furnish your new apartment
• 2. Also include pots/pans, dishes, kitchen utensils, linens,
etc. (everything needed for everyday living)
• 3. Electronics
• 4. Provide prices and pictures of your purchases
• 5. Deduct the costs of these items from your savings
account
• 6. Journalize your findings for your personal financial plan,
and submit for homework…due date..next class period…all
late assignments will be deducted by 25 points per day

64. Section 8 Personal Financial Plan
• Section 8: Go to Netgrocer.com or any online
grocer and buy groceries for a month….Buy
breakfast, lunch and dinner for a whole
month…and deduct this from your checking
account….use the same amount of money on
groceries for the 12 month period of this project!
• 1. Document your purchases on the monthly
menu template handout
• 2. Turn in menu template with your name on it
next class period…all late assignments will be
deducted by 25 points per day…no exceptions

65. Section 9 Personal Financial Plan
• A. Expenses All expenses are either fixed expenses or variable expenses
• 1. Fixed expenses do not vary from month to month, such as rent, cable,
Internet fees, etc.
• 2. Variable expenses may change from month to month, such as food,
clothing, etc.
• a. Research the costs of miscellaneous monthly expenses (eg. Toilet
tissue, soap, detergent, shampoo, etc.)
• ... Clothes
• ... Dry cleaning
• Entertainment Expenses
• b. How much do you spend on entertainment monthly; list individual
activities and their prices
Journalize your findings for your personal financial plan, and submit for
homework…due date..next class period…all late assignments will be deducted
by 25 points per day

66. Automobile Insurance
• A. Insurance- Is a protection against risk
• 1. Auto Insurance policies can protect your car as well
as the cars and properties of others
• 2. Types of Auto Insurance
– a. Collision- Covers damage caused by an auto accident
– b. Comprehensive-Covers damage/loss due to theft,
vandalism, etc.
– c. No-fault- Type of arrangement where drivers involved in
accidents collect money from their own insurance carriers
3. Auto Insurers use the following criteria to set their rates:

67. Auto Insurance Cont’d
– a. Age/Gender of the driver
– b. Driving Record of the insured –
accidents/tickets
– c. Value/Type of car being covered
– d. Area where the driver lives/works
– e. Amount of driving done each year

68. Section 10 Personal Financial Plan
• 1.Section 10: Assuming you have an excellent
driving record, and are age 25, go online and
research auto insurance quotes and choose an
Automobile Insurance Policy that fits your
needs
• A. Choose Liability Insurance Only
• B. How much are your monthly payments
• C. Who is Insurance Carrier

69. Section 11 Personal Financial Plan
• Section 11: You’re not finished yet. Now you have
to calculate how much gas you will use in a
typical month. To do this figure you will drive the
typical 12,000 miles per year. Go to
http://www.edmunds.com/calculators/true_fuel.
html?fuelcost=2.50
• Journalize your findings for your personal
financial plan, and submit for homework…due
date..next class period…all late assignments will
be deducted by 25 points per day

70. Section 12 Personal Financial Plan
• Section 12:
• 1. Transfer all of the information from your journal to the budget
sheet handout
• 2. Prepare a PowerPoint Presentation of your Personal Financial
Plan including a Pie Chart with the following breakdown: (In
percentages)
• a. Rent
• b. Car
• c. Auto Insurance
• d. Student loans
• e. Food
• f. Miscellaneous
• g. Entertainment Expenses
• 3. This Personal Financial Plan is for an annual budget

71. Foreign Exchange Market
• A. Foreign Exchange Market is a global
decentralized market for the trading of
currency