SSPFL2 Describe how budgeting and actively reviewing finances can be used to allocate scarce income. a. Explain the importance of setting short-term, medium-term, and long-term savings goals. b. Differentiate between needs and wants. c. Analyze the basic components of a personal budget including income, expenses, and savings. d. Explain how to reconcile a checking account, either online or on paper, including how to account for transactions that have not been posted (i.e. checks or weekend debit card transactions). e. Describe overdraft fees including why they are assessed and how to avoid them. f. Explain the concept of net worth. | Opening: CNN News Work Session
Closing
|
| |
- Short term financial goals: These are smaller financial targets that can be reached within a year. This includes things like a new television, computer, or family vacation.
- Mid-term financial goals: Typically, midterm goals take about five years to achieve. A little more expensive than an everyday goal, they are still achievable with discipline and hard work. Paying off a credit card balance, a loan or saving for a down payment on a car are all mid-term goals.
- Long-term financial goals; This type of goal usually takes much more than 5 years to achieve. Some examples of long term goals are saving for a college education or a new home.