Copyright Goodheart-Willcox Co., Inc. vii Expanded Table of Contents Unit 1 Financial Literacy . . . . . . . . . 2 CHAPTER 1 Financial Literacy Basics . . . . . . . . . . 4 Section 1.1 Introduction to Financial Literacy . . . . . . 6 Section 1.2 Managing Your Personal Finances. . . . . 14 Section 1.3 Financial Influencers. . . . . . . 22 Review and Assessment. . . . . . . . . . . . . . 28 Portfolio Development: Portfolio Overview. . . . . . . . . . . . . . . . . 31 Event Prep: Student Organizations . . . . . . . . . . . . . 31 CHAPTER 2 Personal Financial Planning . . . . . . 32 Section 2.1 Personal Financial Landscape. . . . . . . 34 Section 2.2 Young Adult and Family Finances. . . . . 50 Review and Assessment. . . . . . . . . . . . . . 58 Portfolio Development: Objective. . . . . . . 61 Event Prep: Performance. . . . . . . . . . . . . 61 CHAPTER 3 Income and Taxes. . . . . 62 Section 3.1 Income. . . . . . . . . . . . . . . . . 64 Section 3.2 Tax Returns. . . . . . . . . . . . . . 72 Section 3.3 Government Spending. . . . . . . . . . . . . 82 Review and Assessment. . . . . . . . . . . . . . 92 Portfolio Development: Digital Presentation Options. . . . . . . . . 95 Event Prep: Ethics. . . . . . . . . . . . . . . . . . . 95 Unit 2 Protecting Your Finances. . . 96 CHAPTER 4 Banking . . . . . . . . . . . . . . 98 Section 4.1 Financial Service Providers . . . . . . . . 100 Section 4.2 Checking Accounts . . . . . . 113 Review and Assessment. . . . . . . . . . . . . 124 Portfolio Development: Hard Copy Organization. . . . . . . . . . . 126 Event Prep: Teamwork . . . . . . . . . . . . . . 127 CHAPTER 5 Savings. . . . . . . . . . . . . . 128 Section 5.1 Savings Plans. . . . . . . . . . . 130 Section 5.2 Maximizing Savings. . . . . . . 140 Review and Assessment. . . . . . . . . . . . . 146 Portfolio Development: Checklist . . . . . . 148 Event Prep: Objective Test . . . . . . . . . . . 149 CHAPTER 6 Investing. . . . . . . . . . . . . 150 Section 6.1 Investments. . . . . . . . . . . . . 152 Section 6.2 Types of Investments. . . . . . 157 Section 6.3 Investment Resources . . . . . . . . . . . . 173 Review and Assessment. . . . . . . . . . . . . 182 Portfolio Development: Digital File Formats. . . . . . . . . . . . . . . 185 Event Prep: Parliamentary Procedures . . . . . . . . . 185 CHAPTER 7 Retirement and Estate Planning. . . 186 Section 7.1 Types of Retirement Plans. . . . . . . . . 188 Section 7.2 Planning for Retirement . . . . . . . . . . . 198 Review and Assessment. . . . . . . . . . . . . 206 Portfolio Development: File Structure . . . . . . . . . . . . . . . . . . . 209 Event Prep: Financial Math. . . . . . . . . . . 209 Unit 3 Managing Your Spending . . 210 CHAPTER 8 Credit. . . . . . . . . . . . . . . . 212 Section 8.1 Consumer Credit. . . . . . . . . 214 Section 8.2 Using Credit . . . . . . . . . . . . 226