Key to the Future
Warm-Up Questions
CPS Questions 1 – 2
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
Key to the Future
Lesson 1: Creating a Budget
Lesson 2: Savings and Bank Accounts
Lesson 3: Real-Life Issues in Buying and Selling
Chapter 1, Lesson 1
Key to the Future
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The Components of a Personal Financial
Plan
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The Steps to Creating and Developing a
Personal Financial Plan
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The Elements of a Budget
Chapter 1, Lesson 1
Key to the Future
Why do you think it is important for
you to have a financial plan? Do you
think a plan is just as important for
someone who is wealthy as it is for
someone who’s just getting by? Why
or why not?
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
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Key to the Future
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Finance - the management of money
Personal Finance - how you manage your
money
Chapter 1, Lesson 1
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Key to the Future
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Make good financial
decisions
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Evaluate the opinions
of financial advisers
Chapter 1, Lesson 1
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Key to the Future
1.
2.
3.
4.
5.
6.
Managing your budget
Managing your liquidity
Financing Large
Purchases
Protecting Your Assets
Investing for the Future
Investing in Your
Retirement
Chapter 1, Lesson 1
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Key to the Future
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Budget
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Income
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Detailed summary of expected expenses and
income
Money coming in on a regular basis
Expenses
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Money going out for needs and wants
GOAL: Income > Expenses
Chapter 1, Lesson 1
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Key to the Future
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Liquidity
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Access to funds to cover a short-term cash
need
Money needed to cover unexpected
expenses
Chapter 1, Lesson 1
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Key to the Future
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Financing
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Interest
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Obtaining or providing money for a specific
purpose
Generally comes in the form of loans
Charge on borrowed money
Compound Interest
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Interest on accumulated unpaid interest
Chapter 1, Lesson 1
Key to the Future
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Asset
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Something of value that you own
Tangible assets are physical items
Assets may be protected with insurance
Insurance
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An agreement between two parties
Premium or monthly fee
Chapter 1, Lesson 1
Key to the Future
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Investment
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Something you own that you expect to
increase in value over time
Examples of investments:
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Stocks
Bonds
Mutual Funds
Chapter 1, Lesson 1
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Key to the Future
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Retirement
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Period of life during which you
no longer work full time
People typically retire once
they qualify for Social Security
Military members may retire
after 20 years of service
Start planning for retirement
now
Chapter 1, Lesson 1
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Key to the Future
Learning Check Questions
CPS Questions 3 – 4
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
Key to the Future
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On the worksheet provided, list the six
steps in the financial planning process.
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For each step, list an activity/task that you
should accomplish.
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Be prepared to share your answers with the
class.
Chapter 1, Lesson 1
Key to the Future
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Establish your financial goals:
How important is money to
you?
$ What do you need money for?
$ Be realistic
$ Timing is important:
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$ Short-term
$ Intermediate-term
$ Long-term
Chapter 1, Lesson 1
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Key to the Future
Learning Check Questions
CPS Questions 5 – 6
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
Key to the Future
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On the worksheet provided, identify 3-5
financial goals for each timeframe:
Short-term goals
$ Intermediate goals
$ Long-term goals
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Be prepared to share your answers with the
class.
Chapter 1, Lesson 1
Key to the Future
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Your Current Financial Position
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Present financial position impacts future
decisions
Identify and Evaluate Alternative ways to
Achieve Goals
Savings Account
$ Investments/Stocks
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Chapter 1, Lesson 1
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Key to the Future
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Select the best plan
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Evaluate your plan
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Should be a plan you can stick
with
Review it regularly to see how
you’re doing
Revise your plan
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Note where it’s worked and not
worked
Chapter 1, Lesson 1
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Key to the Future
Learning Check Questions
CPS Questions 7 – 8
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
Key to the Future
$ Use the internet to research smart
money management techniques.
$ Focus on tips that help meet your
financial goals.
$ Identify your top 5 tips for smart
money management.
$ Be prepared to share your tips with
the class.
Chapter 1, Lesson 1
Key to the Future
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Income – money you receive regularly
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Salary / Wages
Savings
Investments
Expense – money you spend
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Clothing
Entertainment
Food
Car
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Chapter 1, Lesson 1
Key to the Future
Learning Check Questions
CPS Questions 9 – 10
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
Key to the Future
$ Using the worksheet provided,
create a three-month budget listing
your expenses and income.
$ Is your budget balanced? Is your
budget realistic? If not, revise it.
$ Be prepared to share your tips with
the class.
Chapter 1, Lesson 1
Key to the Future
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The Components of a Personal Financial
Plan
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The Steps to Creating and Developing a
Personal Financial Plan
$
The Elements of a Budget
Chapter 1, Lesson 1
Key to the Future
Review Questions
CPS Questions 11 – 12
Note for teacher: Use “Pick a Student” button in CPS
Chapter 1, Lesson 1
Key to the Future
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Savings and banking accounts
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Chapter 1, Lesson 1