Unit 5 E?s Personal Finance CH 10, 11 & p.

503-535 Name:_______________________________
SSEMA2 Explain the role and functions of the Federal Reserve System. a. Explain the roles/functions of money as a medium of exchange, store of value, and unit of
account/standard of value.
SSEPF1 Apply rational decision making to personal spending and saving choices. a. Use a rational decision making model to evaluate the costs and benefits of post-
high school life choices (i.e., college, technical school, military enlistment, workforce participation, or other option).b. Create a budget that includes a savings or
financial investment plan for a future goal.
SSEPF2 Explain that banks and other financial institutions are businesses that channel funds from savers to investors. a. Compare services offered by different financial
institutions, including banks, credit unions, payday lenders, and title pawn lenders. b. Explain reasons for the spread between interest charged and interest earned. c.
Give examples of the direct relationship between risk and return. d. Evaluate the risk and return of a variety of savings and investment options, including: savings
accounts, certificates of deposit, retirement accounts, stocks, bonds, and mutual funds
SSEPF4 Evaluate the costs and benefits of using credit. a. Describe factors that affect credit worthiness and the ability to receive favorable interest rates including
character (credit score), collateral, and capacity to pay. b. Compare interest rates on loans and credit cards from different institutions. c. Define annual percentage rate
and explain the difference between simple and compound interest rates, as well as fixed and variable interest rates.
SSEPF5 Describe how insurance and other risk-management strategies protect against financial loss. a. List and describe various types of insurance such as automobile,
health, life, disability, and property. b. Explain the costs and benefits associated with different types of insurance, including deductibles, premiums, shared liability, and
asset protection.
SSEPF6 Describe how the earnings of workers are determined in the marketplace. a. Identify skills that are required to be successful in the workplace, including
positive work ethics, punctuality, time management, teamwork, communication skills, and good character. b. Explore job and career options and explain the

Provide your example in this column. (Listen in class!) Provide a “Tweet” definition in this column. (<140 letters)

1. Money What is $? 2-3-4

2. Medium of Exchange
3. Unit of Account
4. Store of Value
5. Currency
6. Commodity Money
7. Representative Money
8. Fiat Money
9. Legal tender
10. Interest
11. Bank
12. Credit Card
13. Interest
14. Principal
15. Debit Card/Check Card
16. Checks
17. Checking Account
18. Automatic Payment/Debit
19. Savings Account
20. Budget
21. Credit
22. Credit Bureau
23. Credit Rating
24. Collateral
25. Annual Percentage Rate
26. Interest Rate
27. Simple Interest
28. Compound Interest
29. Fixed Rate
30. Variable Rate
31. Saving
32. Investing
33. Payday lenders
34. Title pawn lenders
35. Time Deposit
Unit 5 E?s Personal Finance CH 10, 11 & p. 503-535 Name:_______________________________
36. Certificate of Deposit (CD)
37. Bonds
38. Stocks
39. Mutual Funds
40. Insurance
41. Life Insurance
42. Disability Insurance
43. Premium
44. Deductible
45. Co-payment
46. FDIC

E?s You need to answer each question correctly for credit. This is your STUDY GUIDE.
1. What are the 6 1.
characteristics of money?
2.
3.
4.
5.
6.
Element: SSEPF2.b
Explain reasons for the
spread between interest
charged and interest earned.
2. Define credit.

3. Define interest.

4. Compare simple
interest to compound
interest.

5. Credit card:
6. Debit card:

7. What are the C’s of

Credit to get a loan?
a. *Character
b. Collateral
c. Capacity to pay

8. *What is your credit

score (credit rating) and
Unit 5 E?s Personal Finance CH 10, 11 & p. 503-535 Name:_______________________________
how is this score vital to
your future? (Part of
your Character!)

Element: SSEPF1.b 9. Define savings.

Use a rational decision
making model to select one
option over another.

Element: SSEPF1.a
10. Define investing.
Explain that people respond
to positive and negative
incentives in predictable
ways.
.

11. 3 Types of Investing:

Element: SSEPF2.a
Compare services offered by a. BONDS:
different financial
institutions.
b. Stock:
Element: SSEPF2.d
Evaluate a variety of savings
and investment options,
including stocks, bonds and c. Mutual Funds
mutual funds.
Element: SSEPF2.c 12. List the 3 types of Savings accounts and the risks and returns (pros/cons) of each
Give examples of the inverse
relationship between risk PROS CONS
and return. 13. ______________

14. ______________

15. ______________

16. Define RISK.

17. Define RETURN.

18. Define stock.

Element: SSEPF5.b 19. What is insurance? How does it work?

Explain the costs and
benefits associated with
different types of insurance.
Unit 5 E?s Personal Finance CH 10, 11 & p. 503-535 Name:_______________________________
Element: SSEPF5.a
List various types of
20. Car Insurance:
insurance such as
automobile, health, life, 21. Home Owners Insurance (Property):
disability and property. 22. Health Insurance:
23. Life Insurance:
a. WHOLE-
b. TERM-
24. Renters Insurance:
25. Dental Insurance
26. Disability Insurance:
27. Explain how insurance represents shared liability and asset protection.
Shared liability:
Asset protection:
28. How will you save? In detail, explain your plan to stay out of debt.

29. What are your financial goals? List 3 investments you will make before you turn 30 years old. DO NOT say “make $”; “be
successful”. Explain HOW you plan to meet your goals.

Element: SSEPF6.a 30. Tuition:

Identify skills are required to
31. Grants:
be successful in the
workplace. 32. Loans:
33. What are your post-high school plans for the next 5 years? Make a list of your plan. Do
Element: SSEPF6.b
not simply state… make money; be successful and or be happy. Where are you going in
Explain the significance of
investment in education, August of next year? What skills do you hope to gain? What job/career/profession do
training and skill you hope to obtain? How will you pay for your plan?
development.

NOTES:
Unit 5 E?s Personal Finance CH 10, 11 & p. 503-535 Name:_______________________________

RISK

Reward

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