Personal Finance

• State Personal Finance Standard (Grade 11 &12) • Apply PF 2.1 Execute a rational decision-making process considering

alternatives and consequences. • Analyze PF 2.2 Differentiate between various money management

tools. • Create PF 2.3 Generate a system to organize finances and maintain

records

By: Mary Jensen

Budget

• Money Management Tools• CDs• Bonds• Saving Account• Checking Account• Money Market Account• Mutual Funds • Stocks

Money Management

Certificates of Deposits (CD)

• Holds a Fixed Amount of Money• For a Fixed Amount of Time• Six Months• One Year• Five Years

• In Exchange the Bank Pays Interest• http://www.sec.gov/investor/pubs/certific.htm

Saving Accounts

Maintained by Retail Financial Institutions

Pays Interest on Liquid Assets

Cannot be Used Directly as a Checking Account

Bonds

• Known as a fixed-income security• Created for Raising Capital• Essentially Loan Agreements • Between Bond Issuers and investors

• Financial Institution Allows• Withdrawals• Deposits

• Very Liquid• Method Types of Withdrawals• Checks• Automated Cash Machines• Electronic Debits• Debit Visa/Mastercard

Checking Accounts

Money Market Account

http://www.investopedia.com/terms/m/moneymarketaccount.asp

Mutual Funds

Stocks