Introduction
Foundations of Personal Finance serves as a guide to the U.S. economic system and an introduction
to the global economy. It will help you understand the system and how it affects you as a consumer,
producer, and citizen. It will also help you make the most of the future opportunities that come your
way in the global economy.
The text outlines the key characteristics of the free market system and the challenges of global-
ization. It describes your fi nancial activities as worker, consumer, manager, and shopper. Mastering
these decision-making functions lays the foundation for personal fi nancial competence through all
the stages of your life.
To manage personal fi nances, you need to defi ne the economic goals you want to achieve and the
steps you can take to achieve them. Foundations of Personal Finance explains how to identify your most
important needs and wants and how to manage your resources to reach your goals. It can help you
make the best use of all your resources to raise your standard of living and create fi nancial security
in your future.
As you use this book, you will learn how to make fi nancial decisions related to routine spend-
ing for food, clothing, and personal needs. You will learn where to fi nd reliable information about
consumer products and services, government policies, and economic conditions. You will fi nd out
what to consider when making big spending decisions for items such as cars, housing, and home
furnishings. You will also learn what is important to know when you use credit, buy insurance, and
invest your money. In addition, the text identifi es the tools you can use to protect your consumer
interests as you carry out your fi nancial transactions in the marketplace.
You will fi nd a section on planning your future. These chapters will describe the education and
job training that will prepare you to take your place in the work world. Finally, you will look at your
role as a citizen of the world and custodian of the environment.
Foundations of Personal Finance is straightforward and easy to read. Each chapter begins with
learning objectives and new terms to understand. Each chapter ends with review questions, critical
thinking questions, and activities to help you study effectively and organize what you learn. The case
studies provided throughout the text will help you relate the material to lifelike situations. You will
also fi nd features on careers; real-life connections to the text content; and links to history, math, and
science.
About the Author
Sally R. Campbell is currently a freelance writer and consultant in consumer economics. She
develops educational materials, including teacher’s guides, curriculum guides, textbooks, and stu-
dent activity materials.
She was formerly the editor and assistant director of the Money Management Institute of
Household International where she wrote educational materials related to money management, con-
sumer information, and fi nancial planning.
Sally has a master’s degree in education from St. Louis University and has completed the Certifi ed
Financial Planning Professional Education Program of the College for Financial Planning. She taught
consumer education in the St. Louis public schools.
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