Copyright Goodheart-Willcox Co., Inc. 10 Chapter 1 Financial Literacy Basics You set standards for the way you want to live, what you want to do, and the goods and services you want to buy. These standards depend on your values and goals. They often vary from situation to situation. For instance, if a big, perfect picture is a top priority when you buy a television, you may only settle for the best. Your standards for a TV would be high. If you just want a small TV that fits the corner of a workspace, your standards would call for something smaller and less pricey. Think about situations in which you look for the best and other situations when you just want what is good enough. A clear understanding of your standards in different situations will help you make financial decisions that are right for you. Resources A resource is a supply of something that can be used when needed. Resources are tools you can use to reach goals. Two types of resources are human and nonhuman resources. Human resources are internal. They include energy, knowledge, experience, skills, talents, motivation, imagination, and determination. These resources vary greatly from one person to the next. The people in your life often serve as resources, too. Parents, friends, teachers, and neighbors are among the people who may be helpful resources. Nonhuman resources are external, such as money, time, and equipment. It is easy to overlook some of these resources. People often do not see their possessions as resources or as a means to achieving goals. Consider the resource value of a computer, camera, car, time, and other things available for your use. You often can make use of public resources, such as libraries, parks, recreational facilities, schools, and public transportation. As you plan the use of your resources, consider the following points. • Resources are scarce. The amount of available time, energy, money, land, and other resources is limited. By planning, you can make the most of them. • Resources are manageable. Resources can be managed to meet specific goals. For example, saving money or using credit lets you buy costly items you cannot purchase with a single paycheck. Planning your errands to follow direct routes and avoid backtracking saves time and fuel. Reading a book when you are on a bus or in a waiting room makes idle time productive. Ethics What Are Ethics? Ethics are the moral principles or beliefs that direct a person’s behavior. Ethics often conform to accepted standards of right and wrong. They are the set of rules that define what is wrong and right. Ethics help people make good decisions in both their personal and professional lives.