Matthew 25:14-30
Proverbs 12:27
A good worker finishes the job set before him
Ecclesiastes 5:18-19
God enables people to require wealth and money
Proverbs 15:27
Philippians 4:11
Be content with what God has given you
I Timothy 5:8
I Timothy 5:4
The parents care for their children
The children care for their parents
Genesis 1:28
Man is to control the earth and use it wisely in order to benefit mankind
Malachi 3:10
Proverbs 3:9
Give tithe and offering
Proverbs 10:4-5
Work produces good things
Proverbs 6:6-11
Saved for the future
The 10-80-10 plan
Romans 12:17
Romans 13:13
Have integrity
Proverbs 12:11
Do not be enticed by get rich quick schemes
This person lacks judgement
Your injuries if hit by an uninsured motorist
Uninsured motorists
Who needs auto insurance
Person who drives a car
Americas life insurance capital
Hartford, Connecticut
Payment made to the insurance company to keep the policy in force
Premium
When you have a loss covered by insurance, you file a ____
Claim
A contract between an insurance company and you
Insurance policy
How long should you plan to keep your whole life policy and why?
15-20; cash benefits
Repair costs for your car (some say drop it after five years)
Collision
Covered for entire life
Premiums start high and level off
Cash value builds and can be assessed later
Includes universal life and variable
Permanent/whole life insurance
What does your health insurance depend on
Medical needs
Money
Factors to consider before getting disability insurance
Income needed (65%-80% of gross income) How long can you wait to receive benefits Policy duration
Should policy holders be concerned about the financial strength of their insurance company?
Yes
Doctors are limited to those on the insurance company list
HMO
Damage to your car from a non-accident source
Comprehensive
Are travel and mortgage insurance necessary?
No
Average annual price of a long term care policy
1,000$
Damage you cause to another’s car or property
Property damage
Read before purchasing insurance
Buyers guide
Objective:
Not to come out ahead, but preserve what you already have
Single company (State Farm)
Direct agent writers
Pay a minimum loss
Deductible
Variety of companies
Independent agents
Don’t give up this to get low prices
Service
Options if you are about to lose a group health policy
Conversion policy
Shop around for individual coverage
Coverage for limited time Inexpensive for young Premiums increase yearly Payment upon death If dropped, there is no cash value and no payment
Term insurance
The amount of homeowners insurance should be _________ value, not cash value
Replacement
The biggest investment a person will make
Home
Patients may go to any doctor if they are prepared to pay a higher price
PPO
Need life insurance
Anyone with financial obligation, and does not have resources to honor that obligation in the event of death
The two health insurance plans
HMO
PPO
The best way to insure that your company is fine
Rating companies (newspaper, magazines, Wall Street journal)
Business on a small scale
Microeconomics
Examples of representative money
Checks, credit cards, debit cards
Money that is lent to people
Loans
A tabulation of income and planned spending
Budgets
Business on a large scale
Macroeconomics
Money left with a bank until needed
Checking accounts
Anything commonly used and accepted as payment for goods and services
Money
Something represents money
Representative money
Money left in an account that draws interest/bank pays to use your money
Savings account
The original amount of money borrowed
Principle
Money is declared this by congress in order to assure that money would be the common accepted way for payments
Legal tender
Money the customer pays to the bank in order to borrow the money
Interest
Three financial services the bank provides
Checking
Savings
Loans
10-80-10 plan:
10% tithe
80% living expenses
10% savings
Determines the amount of interest
Federal Reserve Board
Keeps it face value
Store of value
One common good selected to serve as money
World wide
Businesses that try to make money by providing three financial services
Banking
Used to measure the worth of something
Standard of value
Exchanging services for services and goods for goods
Bartering: medium of exchange
Money that is backed by the word of the government
Fiat money
Something a person writes, telling the bank how much money to pay
Order
Characteristics of money:
Durable
Portable
Divisible
Stable
Terms
Intrinsic value
Something is valuable because of the nature of the item. It has sentimental value
Terms
Commodity
One common good selected to serve as money
Terms
Money
Anything commonly used and accepted in payment for goods and services
Terms
Collision insurance
Repair costs for your car
Terms
Barter
Exchanging services for services and goods for goods
Terms
Replacement value
.
Terms
Microeconomics
Businesses on a small scale
Terms
Cobra law
The employer must give departing employees the chance to buy coverage for 18 months
Terms
Economics
Greek
“Oikos Nomos”
To manage a house
Terms
Economics
English
The study of how people make choices among alternatives to improve our lifestyle
Terms
Interest
Money customers pay to the bank in order to borrow money (loans)
Or when the bank pays to use your money (savings)
Terms
HMO
Health maintenance orginizations
Doctors are limited to those on the insurance company list
Terms
PPO
Preferred provider orginizations
Patients may go to any doctor if they are prepared to pay a higher price
Terms
Macroeconomics
Businesses on a large scale
Terms
Legal tender
Money is the common accepted way for payments
Terms
Budget
A tabulation of income and planned spending
Terms
Principle
The original amount of money borrowed
The market
The means by which a product is bought/sold freely
Another name for Capitalism…the people make decisions
The #1 aspect of capitalism
Representative money
Examples
Something represents money
Ex: MasterCard, credit card debit card,checks
List the three types of businesses in capitalism
Sole proprietorship
Business partnerships
Corporation
Sole proprietorship
Owned by one person
May employ others
74% of all businesses are owned by one person (in the USA)
Business partnerships
More than one person owning a business
8% of all business are partnered
Corporation
Owned by several people People buy stock in a company 18% of businesses are corporates Success...gain money failure...lose money Ex...coke
List the three types of world economics
Traditional
Command
Market
Traditional economic system
Decisions are based on the past
Third world countries
Everyone has done what has always been done
Ex…costa rica
Command economic system
Communism
Socialism
Government makes decisions
Ex…Cuba
Market economic system
Capitolism
People make decisions
Adam smith
Wrote “the wealth of nations”
Describe capitalism as
invisible hand (government guides the things you do)
Self interest (shop at what’s best for you)
What are the three economic questions
What goods and services will be provided
How should the goods and services be produced
Who will receive the goods and services
List the things that make capitalism work
Consumers…buyers
Producers…makers
Competition…companies try to outdo each other
Profit
Private property…you can own your own things
Freedom of exchange…you can return items