Chapter 1: Personal Finance

Financial knowledge, basic skills, and the ability to apply knowledge to make financial choices

You should make sure to cover your wants before you cover your needs.

To be a good manager, you should identify all available resources.

A value or goal that is given more importance than other value and goals.

In a period of slow or no economic growth, unemployment rises.

It is not necessary to identify your goals or rank them in order of importance

Determination, motivation, and experience are examples of internal resources.

Physical necessities, such as food and shelter.

Overall structure of values & goals that guides your behavior and gives you direction.

Living within your means is the only way to have financial peace of mine.

The tools you can use to reach your goals.

Weighing the costs against the benefits of an action is a form of cost-benefit analysis.

An objective that you want to attain.

An established measure of quality, value, or quantity.

When prices go up and the value of the dollar declines, we are in a recession

You can get the most from your resources by planning how and when to use them.

Weighing the costs against the benefits of an action is a form of cost-benefit analysis

Demographic trends have an impact on the economy and on the financial life of indiviudals

An established measure of quality, value, or quantity is a

When you one thing is more important than another, you are establishing a standard.

Items that can be touched, used, and purchased, such as food or clothing are considered

A structure of values & goals that guides your behavior & provides a sense of direction

The process of organizing & using your resources to achieve objectives.

Nonessential things you would like to have

The state of the economy at a given time is known as its economic condition.

Money, time, and equipment are examples of internal resources.

The process of organizing and using your resources to achieve predetermined objectives is

Action keeps you focused on the final goal and helps you stick with a project to the end.

The moral principles or beliefs that direct a person's behavior

Easily identified goals that continually change are referred to as

The need to obtain one goal in order to attain another goal is referred to as a(n)

Globalization gives you access to a diversity of goods and services around the world.

Technology brings changes to the way you live and deal with financial matters.

Goals that include career choices and personal characteristics are referred to as

Marginal analysis is not a powerful decision-making tool in business.

Items that cannot be touched are considered

The planning phase of management involved identifying goals, obstacles, and resources.

Goals that contain things you might want to accomplish in life are referred to as

Your personal beliefs about what is important and desirable.

There are 7 steps in the systematic decision-making process