Chapter+6

=Chapter 6: Personal Finance=

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Chapter Objectives:

 * Describe difference between salary and wage
 * What are factors that influence income?
 * Name and describe advantages and disadvantages of savings options
 * What are the pros and cons of consumer credit?
 * Define: simple interest, compound interest, annual percentage rate (APR)
 * Three C's of Credit worthiness?

Extra Credit (each question is to be answered in 3-4 COMPLETE sentences to be considered for extra credit).

 * 1) Explain why you agree or disagree with the following statement: "The marketplace is the best protector of consumers' interests."
 * 2) Suppose you decide to begin saving $25 a month. What alternatives do you have as places to put your savings? Would the alternatives you choose differ after you accumulate a substantial amount of savings? Explain your responses.
 * 3) According to the legal principle, //caveat emptor// - let the buyer beware - consumers are responsible for checking the quality of items they purchase. What responsibilities, if any, do you think the government should have to protect consumers from buying shoddy merchandise?