Introduction to Personal Finance

Examine the charts, graphics, and reading
excerpts in Chapter 1: Foundations in Personal
Finance.
o Make a list of questions you would like to have
answered as we go through the chapter.
Section 1

WB: Before You Begin, pgs. 10-11
o Review the Learning Outcome objectives and Key Terms
o Complete the “Before” column on the “Measure Your
Progress” chart

Journal:
1.
2.
3.
Can you think of a financial goal you have at this
moment?
Is this a long-term or a short-term goal?
Describe how you plan to achieve this financial goal?

Homework: Parent Interview

Clay’s Candy Bar Madness (20 minutes)

Video 1.1 (13 minutes): Key Components of
Financial Planning
 Journal:
In what ways could you do better
when it comes to managing your money?

What is personal finance?
o Personal finance is all the financial decisions an
individual or family must make in order to earn,
budget, save, and spend money over time.

Why is it important to set money goals?
o Setting money goals gives you motivation to manage
your money well.

In what ways are people different when it comes
to managing money?
o Everyone has different strengths and weaknesses
when it comes to managing money.

Personal finance is 80% behavior and 20%
knowledge
Personal Finance
Behavior
Knowledge
20%
80%
Section 2

Video 2.1 (15 minutes): A History of Credit and
Consumerism

Journal: What was Dave’s biggest lesson when it came
to managing money and building wealth?

Why aren’t Americans better at managing money?

Describe the financial reality of most Americans?
o Many Americans are drowning in debt and buying
things they can’t afford.

What can you do to make sure your future
financial reality does not include debt?
o Have an emergency fund, write a monthly budget and
stick to it, and save for large purchases.

What was one thing that shocked you about the
history of credit and consumerism?

Did learning about the history of credit make you
want to manage money differently than the
average American? Why or why not?

Why is Dave so passionate about teaching people
how to manage money and avoid debt?

In what ways are Americans being outsmarted by
the credit industry?

Activity:
o History of Credit in America, (25 minutes)
Section 3

Video 3.1 (14 minutes): Learn the Language of
Money

Why is it important to know the language of
money?
o You need to know the language of money so you can
understand your financial statements and communicate
effectively about your finances.

In what ways does your behavior affect whether
or not you win with money?
o Knowing how to manage money alone doesn’t ensure
that you will manage your money behavior. It’s what
you do with your money that matters most.

What does it take to become money smart?
o Basic math, understand the language of money, and
manage your behavior with money.

Describe the three levels of financial well-being.
o Survival: Living paycheck to paycheck
o Comfort: Moving toward financial security
o Secure: Your money works for you

When you’re an adult, who will determine your
level of financial well-being?
o You will!

Why is it important to consider your money
personality when developing a personal financial
plan?
o Develop a plan that works with your specific money
strengths and weaknesses.

Read:
o What’s your money personality? pg. 18
o What does winning with money look like? pg. 22

Activities:
o foundationsU.com/1
• Money Personality Quiz
o What is Personal Finance? (25 minutes)
o Draw a picture representing each of the three levels of
financial well-being.
1.
2.
3.
Survival
Comfort
Secure

foundationsU.com/1
o Article Summary:
• Are Credit Cards a Way of Life?
• Tired of Keeping Up with the Jones?
• 20 Things Broke People Say

Complete the “After” column on the “Measure
Your Progress” chart, pg. 11.

Chapter 1 Summary, pg. 24-25

Study Guide: Money in Review, pgs. 26-27