Personal Finance Final Exam Paper

Opportunity cost means giving up something of value or importance to you to achieve a particular goal or outcome. It is a chance that causes you to miss out on something you want, but an individual can benefit by gaining something for the opportunity they accepted.

I for one, know the benefits of having a personal accountant, will definitely be investing in meeting with one. I would much rather be safe than sorry. I might even just meet with one every few months, just to make sure I am on the right track. This could benefit the business community by avoiding debt, and financials crisis. It would help people be more involved in the business community by allowing people to be able to invest in stocks due to the fact they know are comfortable in their

Chapter 8 addresses the financial questions an entrepreneur must ask before starting a business venture or expanding an existing one. Such questions as how you plan to use the money and how you plan to return the money back to the lenders. When carefully use of loans can help boost the business. There are also demerits coupled with borrowing money, such as interest charges and debt can inhibit growth.

The time value of money concept identifies that the present value of a dollar obtained in the future is less than a dollar today. Therefore, the expression time value of money denotes the change in the value of a dollar as time passes. It refers to fluctuations in the value of money as

Currently, I do not make serious personal financial decisions, but I do try to save any little money I have. Most of the money I have comes from my weekly allowance and gifts from various family members. I try not to spend too much money unless there are things I really need to buy, such as medicated lip balm from the winter, pencils, and other personal necessities. I also try not to keep too much money on me when going out or even at home. I make a list of all the important things I need to buy, and I check the total cost against how much money I have. Sometimes I have had to delay buying certain items because the purchase would

Location, location, location and maybe for the ladies a large kitchen, nice bathrooms; and the guys a garage (a possible man cave or work shop) influence peoples buying decision. Other buying decisions are calculations, needs, values, and opportunity costs.

Sujatha, A., describes financial literacy as the ability to grow, monitor, and effectively use financial resources to enhance the well-being and economic security of oneself, one’s family, and one’s business. Financial literacy is a process of making meaning of, and understanding, financial issues and situations. Lack of financial literacy is often tied to lack of access to financial products or failure to use them even when they are available (Sujatha, 2016).

Opportunity cost is the highest valued, next best alternative that must be sacrificed to obtain something or to satisfy a need or want. An easy way to remember what opportunity cost is that when you choose to do something whether it be homework, sports, tv, etc. you lose something else. And what you lose is being able to appoint in your next best alternative.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.

Back home on the Blackfeet reservation in East Glacier, Montana, the wind would be howling

Price is the assignment of value of a product or service. Not only paid with currency, but in multiple manners these could consist of digital money such as the “bitcoin”. The bit coin has merged in to financial market and many firms are starting to use this type of virtual currency. These currencies cannot be controlled by one party (government) that is why it has been such a controversial issue.

“Time is money money is time”, this is a slogan which is most popular now a days. The amount of money one earns determines his quality of life in this modern world. The lifestyle of a successful, individual nowadays is determined by their financial standards in the society which is a primary tool for evaluation of a person’s status.

Having financial goals is very important. I personally have three goals that are important to me. Following a budget is something I want to follow for the rest of my life. I think it is important to have a budget so you can manage and control the money you spend. Right now, I don’t have very much to budget, but soon I will be taking loans out for school and hopefully getting a stable job. To complete this goal, I plan on making a budget each month and stick with it. Another financial goal of mine is to start an emergency fund. I chose this goal because I think it is important to be ready for anything. In my case I would want around two thousand dollars in mine. For this to happen I must budget out money each month and

helps a person to manage his personal finances and also to describe the three products of

What is time value of money? The simple answer towards this question is that the same amount of money will have different value at different time. By this definition money is separated into its nominal value, which is the face amount, and the real value, which is the purchasing power of the money. The real reason here is that inflation exists, therefore when the price of a good goes up the same amount of money that was previously require to buy that good will not be able to buy that same good after the price increase. “Time value of money is the principle that the purchasing power of money can change over time” (Crosson S.V. 2008)