Copyright Goodheart-Willcox Co., Inc. 29 8. Describe how the government influences the economy. 9. Explain the effect of offshore outsourcing on American workers. 10. Explain how globalization influences a person’s finances. Apply Your Knowledge 1. Financial planning provides benefits for families and individuals in personal ways. Name two personal benefits that you can experience through financial planning. Why are these benefits important to you? 2. As you enter the adult world, a financial plan is necessary to satisfy your individual needs and wants. Consider the values, ethics, and standards important to your life. How does this knowledge enable you to develop strategies for satisfying your needs and wants? Make a list of multiple strategies you currently use to make choices. Describe how you have applied one or more of these strategies to meet a need or want. 3. Families also need a financial plan in order to meet the needs and wants of their members. Which strategies can a family develop to satisfy needs and wants? How are these strategies impacted by the values, ethics, and standards of the family? 4. Identify three needs that you must regularly satisfy on your own. An example might be food, transportation, or money for school supplies. Which strategy, such as cost-benefit analysis, trade-off, opportunity cost, or marginal analysis, do you use to satisfy each need? 5. Select a want that you experience on a regular basis. How do you make choices to satisfy that want? Use the decision making model in Figure 1-2 to analyze how you make these personal decisions. 6. Multiple strategies can be used when making decisions to satisfy needs and wants. Some of those strategies are cost- benefit analysis, marginal analysis, trade- offs, and opportunity costs. Select a need or want that a family may wish to satisfy. Explain how each of the strategies can be applied to analyze if and how the need or want can be met. 7. Being financially capable means having the ability to understand basic topics related to finance such as wisely making, spending, and saving money. Create a chart with three columns. Label the columns Making Money, Spending Money, and Saving Money. In each column, write bullet points on actions you can take to meet each objective in a responsible manner. Name your chart Financial Capability Plan. As you progress through this text, add new ideas that you learn as you read the chapters. 8. Individuals must take responsibility for the financial decisions they make. Describe the consequences that a person might experience if a decision relating to finances is made hastily without weighing the outcome. 9. Media influences consumer decisions in many ways. Make a list of the ways that television, the Internet, or other media influences decisions you make as an individual consumer. Next, make another list of media influences on family decisions. Discuss why you think the impact of media is positive in some instances and negative in other instances when making decisions.