Civics & Economics Unit 7 Study Guide – Name: ______

Personal Financial Literacy

* This study guide must be completed and turned in on test day!

Budgeting & Taxes
CE.PFL.1.1 Explain how education, income, career, and life choices impact an individual’s financial plan and goals.
CE.PFL.1.2 Explain how fiscally responsible individuals create and manage a personal budget that is inclusive of income, taxes, gross and net pay, giving, fixed and variable expenses and retirement.
1. Budget
2. Income
3. Expenditures
4. Gross pay
5. Net pay
6. Disposable income
7. Discretionary income
8. Income Taxes
9. Sales Taxes
10. Property Taxes
11. Progressive taxes
12. Regressive taxes
13. Proportional taxes
Banking & credit
CE.PFL.1.3 Analyze how managing a checking and savings account contributes to financial well-being.
14. Savings account
15. Checking account
16. Credit
17. How can the use of credit impact your financial stability over time?
18. Debit
19. Overdraft
DEBT MANAGEMENT/CREDIT
CE.PFL.1.4 Summarize how debt management and creditworthiness impact an individual’s ability to become responsible consumers and borrowers.
20. Simple Interest
21. Compound interest
22. Credit score
23. APR
INVESTING
CE.PFL.1.5 Analyze how fiscally responsible individuals save and invest to meet financial goals.
CE.PFL.1.6 Compare various investing strategies and tax implications for their potential to build wealth.
24. Stocks
25. Bonds
26. Mutual funds
27. CDs
28. Money Market Account
CONSUMER PROTECTION
CE.PFL.2.1 Explain how consumer protection laws and government regulation contribute to the empowerment of the individual.
CE.PFL.2.5 Summarize strategies individuals use for resolving consumer conflict.
29. Consumer protection laws
30. Consumer Product Safety Commission
31. FTC
32. BBB
33. At what point should the government’s role of protecting consumers interfere with an individual’s personal economic choices? How can we balance these two ideas?
BUSINESS PRATICES & FRAUD
CE.PFL.2.2 Summarize various types of fraudulent solicitation and business practices.
CE.PFL.2.3 Summarize ways consumers can protect themselves from fraudulent and deceptive practices.
34. Identity theft
35. Ponzi schemes
36. Pyramid schemes
37. Multi-level marketing business
INSURANCE & ESTATE PLANNING
CE.PFL.2.4 Classify the various types of insurance and estate planning including the benefits and consequences.
38. What are the benefits of purchasing insurance?
39. Life insurance
40. Auto insurance
41. Health insurance
42. Premiums
43. Co-pays
44. Deductibles
45. Out-of-pocket expenses
46. Estate planning

Key understandings…

  • Your financial choices have an impact on your future.
  • An investment opportunity that looks too good to be true probably is.
  • Insurance allows a group of consumers to share risk and benefits.
  • The government plays a role in protecting consumers.