Simple Interest Calculations. I = PRT Simple Interest Formula explained and demonstrated. Description of how Simple Interest is calculated with several numerical examples and that Simple Interest applies to bank deposits/investments as well as with bank/lender loans (mortgages, car loans etc.)

Unit 1 Financial Responsibility & Decision-Making

Liabilities, Assets, Equity, and Balance Sheets. Importance of Equity as a measure of current financial health and stability. Balance Sheet use to determine Equity or Net Worth: Differences between a Budget and a Balance Sheet. The significance of Equity in qualifying for a Bank Loan or other business loans to start a business, obtain a mortgage etc. Identification of Current (short term) Liabilities and Assets.
Discussion of Long-Term Liabilities (payback periods longer than 1 year) and examples of Long-Term
(Fixed) Assets and investments. Review of HW assignment.

Chapter 2 The Financial Plan – We examined the second component which is creating a plan for managing our liquidity. We made a plan for how much cash or liquid assets to keep in reserve and how much to invest.

Liabilities, Assets, and Equity: Definitions and examples of these key terms. Video presentation which included Short-term Liabilities, Long-Term Liabilities, Current/Liquid Assets, Long-Term/Fixed Assets, Tangible Assets, and Intangible/Investment Assets. Equity defined as difference between Assets and Liabilities. Balance Sheets and Net Worth. During today's class, Aiden learned about several key terms in basic financial analysis which included Assets , Liabilities, and Equity. The important concept of Net Worth (Equity) and Balance sheets were explained in detail.

Chapter 2 The Financial Plan – We went through step one: determining your net worth, step two: establishing your income, and step three: identifying your expenses. We learned the meaning of equity, income, and interest. We explored the impact of income tax on our expenses.

Liabilities and Assets. Short-term and long-term liabilities and effects on budgeting. Video on specific types of liabilities/debt and how to minimize and/or eliminate liabilities.

Chapter 2 The Financial Plan – We began to examine the components of a personal financial plan. We examined the spending habits of millennial’s, Gen X, and boomers. The first component is budgeting and taxes. The purpose of a budget is to plan spending and savings given your current income level. Step one of this component is to determine your net worth which is assets – liabilities.

We learned how financial planning helps you achieve personal short and long-term goals. We understand the need for emergency funds. We discovered that there are several categories or goals that require financial planning such as: buying a home, car, having a family, retirement, and charitable giving.

Liabilities: Definition and examples. Liabilities defined as debts which have a payback schedule/period. Liabilities also explained as when money owed on an asset is higher than the intrinsic value. Video on Assets and Liabilities. Review of written homework on short-term and long-term financial planning.