Lesson1

• Finance

  The management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting
• Types of finance

  • Personal finance
  • Corporate finance
  • Public finance
• Personal finance


  The financial management for a person or family
• Corporate finance


  The financial management of a company, often with the goal of maximizing profit while managing financial risks
• Public finance


  The financial management of a government entity, involving social and fiscal responsibilities
• Areas of personal finance

  • Income
  • Spending
  • Saving
  • Investing
  • Protection
• Income


  A source of cash inflow that an individual receives and uses to support themselves and their family
• Spending


  All types of expenses an individual incurs related to buying goods and services or anything that is consumable
• Saving


  Excess cash that is retained for future investing or spending
• Investing

  The purchase of assets that are expected to generate a rate of return
• Protection


  A wide range of products that can be used to guard against an unforeseen and adverse event
• Money can't buy happiness, but financial wellbeing is important if you want to provide for your family's basic needs
• Why we need money

  To pay for all the things that make life possible, such as shelter, food, healthcare bills, and a good education
• Benefits of money


  • Gives you freedom
  • Gives you the power to pursue your dreams
  • Gives you security
• Disadvantages of money


  • Obsession with money can create problems
  • Money can lead to disagreements
• Dimensions of wellbeing


  • Physical
  • Intellectual
  • Emotional
  • Social
  • Financial
• Characteristics of good wellbeing

  • Presence of positive emotions and moods
  • Absence of negative emotions
  • Satisfaction with life, fulfillment and positive functioning
• Financial literacy leads to a healthier life
• Understanding personal finance encourages awareness and responsibility
• Lack of financial knowledge can lead to unmanageable debts, lack of savings, poor health or depression, and bankruptcy
• Actions that could improve your financial wellbeing

  • Create a budget
  • Consider rolling debts into one
  • Try to save regularly
  • Set aside emergency cash
  • Be open to talking money with partner
  • See if you can get better deals
  • Seek financial assistance
• Finance


  The management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting
• Types of finance


  • Personal finance
  • Corporate finance
  • Public finance
• Personal finance


  The financial management for a person or family
• Corporate finance


  The financial management of a company, often with the goal of maximizing profit while managing financial risks
• Public finance


  The financial management of a government entity, involving social and fiscal responsibilities like taxing, budgeting, and spending
• Areas of personal finance

  • Income
  • Spending
  • Saving
  • Investing
  • Protection
• Income

  Source of cash inflow that an individual receives to support themselves and their family
• Spending

  All types of expenses an individual incurs related to buying goods and services or anything that is consumable
• Saving

  Excess cash that is retained for future investing or spending
• Investing

  The purchase of assets that are expected to generate a rate of return
• Protection

  Products used to guard against unforeseen and adverse events, such as life insurance, health insurance, and estate planning
• Money is necessary for obtaining the goods and services needed to survive, so an understanding of personal finance is essential
• Benefits of money

  • Gives freedom
  • Allows pursuit of dreams
  • Provides security
• Disadvantages of money

  • Obsession with money can create problems
  • Money can lead to disagreements
• Dimensions of wellbeing

  • Physical
  • Intellectual
  • Emotional
  • Social
  • Financial
• Wellbeing

  Includes the presence of positive emotions and moods, the absence of negative emotions, and satisfaction with life, fulfillment and positive functioning
• Financial literacy leads to a healthier life by encouraging good saving habits, promoting awareness and responsibility, leading to a positive relationship with money, and promoting financial stability
• Negative effects of lack of financial knowledge

  • Unmanageable debts
  • Lack of savings
  • Poor health or depression
  • Bankruptcy
• Actions to improve financial wellbeing


  • Create a budget
  • Consolidate debts
  • Save regularly
  • Set aside emergency cash
  • Communicate with partner about money
  • Seek better deals with providers
  • Seek financial assistance