2. Supply
• The amount of
a good or
service that is
available in a
specific time.
• Best Buy has a
large SUPPLY
of Ipods.
3. Demand
• The quantity of a good or service that
people are willing to buy at all possible
prices for a certain period of time.
I can’t wait to buy the
new IPad! It’s $600
but I HAVE to have
it!!!
I’d pay ANY price!
Gosh, I hope they
don’t run out before
it’s my turn!
4. Income
• Money earned by a
person most often by
having a job
• Can also include salaries,
wages, interests and
dividends
13. Investing
• When you use money
to make money!
• Examples:
homes, stocks,
bonds, mutual funds,
real estate
14. Retirement
• A plan to provide
economic resources
for use when you no
longer work.
• Usually not accessed
until age 65.
• Help Mrs. Soper out
by answering the
question in your
notes.
15. TEST YOUR KNOWLEDGE
You need a new laptop for school.
Which is an example of effective
decision making?
A. You buy the first laptop you see at Best Buy.
B. You buy the most stylish and sleek laptop
available.
C. You shop at several stores and choose the
best laptop based on price and options.
D. You decide to buy the hot new IPhone. Who
cares about school, anyway?
16. A computer tech needs
his car fixed. He will trade
his computer skills with a
mechanic in order to get
his car fixed.
This is an example of
what economic activity?
20. Saving is the opposite of _______________
Borrowing is the opposite of ____________
Investing is the opposite of _____________
21. What are banks good for?
• Protecting your
money up to
$100,000
• Loaning money to
people for various
things (cars, houses,
boats, etc)
• Giving interest on
money deposited
22. Principal
• The amount of money
that is borrowed on a
loan.
principal
Simple interest
Compound
Interest
23. Simple Interest
• Interest paid on the principal of a loan.
• Money paid on the principal (P) on a loan or
investment.
• Caluclated using the following formula
Interest rate X Principal X number of years
6% X $150,000 X 30 years
25. .You are a credit advisor. Your friend Brian
wants to buy a new Ipod but only has
$50. What advice would you give him?
A. Put the money in a Checking Account
B. Put the money in a Savings Account
C. Put the money in your sock drawer.
D. Forget it, just get an Ipod Shuffle.
26. What does this mean?
Assets
- Liabilities
Net Worth
• What a person is
really worth
financially.
• Someone who has
millions in assets but
owes billions in
liabilities is not a
millionaire.
28. Liabilities
The amount of
debt you have
or could incur.
If you do not spend all
of the money on your
credit card, can it still
count against you?
29. Credit Report
• A report that lists all of your credit
information.
• Includes all credit cards (even old ones that
are not used anymore)
• Includes all money you have borrowed (even
if you have paid it back) and the amount you
borrowed
• Includes payment history (so, don’t forget to
pay on time!)
• Includes all addresses that you have lived at
• Includes all jobs you have worked at
31. Does the interest rate really
matter?
What could a few little points
matter?
If you were to invest $1,000
without taking any out, after
40 years you would have…
At 6% $10,285
At 12% $93,050
At 18% $750,378
So, do a few little points
really matter?
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
6% 12% 18%