Chapter 1

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Unformatted text preview: CHAPTER 1 Understanding Personal Finance Financial Literacy Knowing the facts, concepts, principles and the technical tools fundamental to being smart about your money. PERSONAL FINANCE The study of personal and family resources important to financial success. It involves how people spend, save, protect, and invest their financial resources. Financial Responsibility You are accountable for your financial well-being. Level Vs Standard of Living Our level of living is the way we can afford to live today and make ends meet. The standard of living is how we want to live financially. Sometimes we have to work to bring the two together. Financial Success The achievement of financial aspirations that are desired, planned, or attempted. It is defined by the individual who seeks it. Financial Happiness The satisfaction you feel about money matters. It depends on practicing good financial behaviors. Successful financial planning involves understanding the economic environment. There are...
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This note was uploaded on 04/10/2008 for the course CSM 204 taught by Professor Carolinefulmer during the Spring '08 term at Alabama.

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