21st Century Student FinLit -Getting Personal SW

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GETTING PERSONAL: YOU ANDYOUR MONEY

C H A P T E R 1

W here do you see yourself in 20 years? What will your life-style be? Will you be enjoying the perks of great financial success, or barely able to keep a roof over your head or food on the table? What are your personal financial goals? Q: I expect to be… a. Crazy rich (Think Bill Gates, Mark Zuckerberg…) b. Rich c. Moderately well off d. Living paycheck-to-paycheck e. Flat broke, without a penny to your name You probably believe (or at least hope), that you’ll experience moderate, if not great, financial success. The reality is, however, too many people do not have the skills or knowledge they need to meet their financial challenges or understand their financial risks. They are not financially literate . This lack of skills and knowledge about money is contributing to rising consumer debt, unstable financial futures, income and wealth disparity, and poverty. Whether you live the lifestyle of the rich and famous, are moderately comfortable and secure, or crash and burn into a pit of debt and financial despair depends a great deal on whether you are financially literate. Let’s get started exploring the knowledge and skills you’ll need to live an a, b or c lifestyle, and how to avoid a lifetime of d and e!

PRODUCT PREVIEW

Learning Goals By the end of this chapter you will be able to: • State the elements of comprehensive financial literacy • Compare income and wealth • List key features of U.S. socioeconomic classes • Explain the significance of the FPL • Summarize the relationship of wealth to financial security • (Opt.) Argue for or against Gender Pay Gap reforms

Chapter Resources: The Pew Research Center has an income calculator that enables comparison of income by education, age, race or ethnicity, and marital status. (Search Pew Research Center Income Calculator. ) Investopedia.com is a good go-to site for financial terms and definitions with easy to understand explanations of complex financial instruments and concepts.

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