28 Chapter 1 Personal Finance: An Overview
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Chapter Summary
Section 1.1 Personal Finance Basics
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and can apply your knowledge and skills to making informed and
responsible financial choices. You are the manager of your life and will
make decisions that matter to you.
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direction and purpose and requires a clear understanding of personal
needs, wants, values, goals, and standards. Management involves
using resources to reach goals. Goals for spending and well-established
priorities can guide you to choices that provide personal satisfaction.
Section 1.2 Managing Your Personal Finances
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Economic decision-making tools remind you to live within your means so
you can enjoy financial well-being now and in the future.
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can help you achieve your goals. The process of management also requires
making decisions and solving problems.
Section 1.3 Financial Influencers
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are economic, social, cultural, and technological forces. Government
actions and advancing globalization affect personal finances as well.
Individually and together, these factors will cause you to redefine your
financial needs, priorities, and goals over time.
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cost of credit, job opportunities and employment trends, growth and
international trade, and a host of other economic conditions. Public
assistance is provided through government programs such as Medicaid,
Medicare, Social Security, and other less well-known programs.
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communications, and technology. Globalization gives consumers access to a
vast diversity of goods and services through worldwide markets.