Foundations of Personal Finance

This unit introduces core personal finance concepts including cash flow, budgeting, saving, debt reduction, basic investing, taxes, insurance, and the use of financial accounts and tools. It prepares learners to assess their current financial situation and apply practical money-management strategies needed for deeper planning, investing, and career-related financial decisions in subsequent units.

Learning Objectives

• Analyze personal cash flow by calculating gross and net income, categorizing fixed and variable expenses, and computing net worth to establish a baseline budget
• Apply strategies to prioritize savings goals, allocate emergency and short- and long-term savings, and design a step-by-step plan to reduce consumer debt using budgeting and savings techniques
• Evaluate spending choices and financial trade-offs by assessing tax obligations, identifying insurance needs (including life and homeowners insurance), and weighing the buy-versus-rent decision using cost-benefit reasoning
• Demonstrate knowledge of basic financial products and tools by comparing bonds, mutual funds, and retirement accounts, selecting appropriate transaction and investment accounts, and using digital apps, software, and media to support entry-level financial goals and first-job finances