wome KEY te Unit 2 Study Guide - Personal amity dinance —— Statement of Sheek Financial Position AKA | Balance aman Equation: Ageete -_Ligbilities = Net Worth prone ur B Inclally woh ab a vatmenkss | Tels You: How. ruck you. ate, ia ly Important Because: 1+ +ejj6 You if Your dept ie +0 big I this & negative, what should youdo? Egen Mae: or owe Jeo neonfomen | aKa. | Cach Pow Staternent } Berries ofroape Equation: Incame, _- Eipeners = NetGaifl y Neb Loess NM | telts You: How mich You are: epetcling and on what~ Period, rents 4 ro Eee tant Hall _give you an idea oF a reba ‘air teil Neti Spend oe K which Wall help al Htyou have a het los, what srould you ase earn more of Daas] m Tells You: os feat ee Plan +o aa eee Your money in the Imectant Boca: Aue to pfotize. ur peni ‘and male an parses eg San if you have created your ne nee lover neve es should youdo? Gaye tt of spend Ht What is this money called? discretionary =peKe income . (surpive) Ifyou have more expenses than income what is this called? What shout you dot EEE re you do: Sencing eam more or pend leos Shar ee Ifvent avernancl TaudgeList 3 instances when your budget may need isons why is important to have Name 3 recisons why is imp fo be adjusted or changed fingnetal less 7 = hoe. Your jlo = Dleregendin: fate igs ou want ie er crate = hok eau 2 beter caving if be cco nings enough. iow do needs affect your budget? ad rere ively 40 achieve | Jou amie protnes Sr epee Ts, SEV ae |i ige eae ‘aleinalae SMART ard wonse!! Wa Realietic: eo Write thet de Reale Stal condone. Give an example of a financial decision you a might have fo make on a budget. Buy a-tmk of gae or go 40 the movies. ‘What is the opporiunily cost ofthis decion@ Whichever you don + choose, eye) ‘What are some annual expenses you may have? Meuraree.,-tultion, gifts, Vacation ;Car regione How should you factor annual costs into your budget? Add alll annual coste ane divide by IZ. “This gives You vn) teh you Soul veaveteach month ver enern Wat ere the 5's of budgeting Explcn each, -leteed onthe you mare Ae ay Aer open Restrnt ay no to onpateee outeide oF ypu lg. Name 3 ways you can increase your What isa short erm goal? eee tran 1 Year" What is along term goat more than 4 year | What should be the tisfimport {ullfime employee? cetablich an emergency fund What percentage of your paycheck should g0 directly fo savings? \0%o What is the ideal amount to have in your emergency fund? BU monthe income. When should you establish your emergency We a inueat or make lar “Savchases Eales concep! fay Youn et — je like a int goal of ma purchase power, Seer, fut noney des comparser ‘chop; coupon, heme, bts eCasord why having a spending planis | prce'madeh, escarth che Pe hn ne Give 5 examples of how retailers use pricing gin oh 7a ond odvring io nowate yu seen i opr spree ge i aad Ve ie “ines gone ee nal age Sessa et bs aac jiosche) . Daw ifyour fiends have more discretionary income than you, name 3 ways you can ‘avoid overspending. on eee ose Tt akties cen i Your ettucrtion