About This Chapter
Consumer Economics and Personal Finance - Chapter Summary
Our instructors help you understand the five major rights of consumers and some key aspects of personal finance, including budgeting, retirement and estate planning and tax planning. You'll study different types of financial investments, learn the formula for return of investment and discover the variety of options available for stocks and bonds. These lessons cover how to use quantitative data to make predictions and educate you on various types of preferred stock. This chapter also helps you brush up on the U.S. banking system and interest rates. After watching all the lessons presented in this chapter, you'll be able to describe:
- Factors that encourage the necessity of risk management
- Mutual funds and exchange-traded funds
- Preferred stock advantages
- Private investments
- Calculations for present value of an investment
- Quantitative business analysis methods
Study essential topics in consumer economics and personal finance with these quick and engaging video and text lessons. You can watch the videos all the way through then use the video tags to review main topics in the lessons. Afterwards, take the self-assessment quizzes to make sure you understand the critical concepts presented in each lesson, or read through the lesson transcripts to get up to speed on related vocabulary. The chapter closes out with a chapter exam that tests your knowledge of all the topics presented in the lessons.
1. Consumer Skills & Personal Financial Planning
You've heard that 'money can't buy happiness,' and it's true. However, money concerns can certainly cause stress, which will make anyone unhappy. In this lesson, we'll learn about four personal financial skills to help avoid that stress.
2. Five Major Consumer Rights
Consumers should expect safe products and ethical behavior from businesses. While there is not any official regulation, President Kennedy introduced four of the five major consumer rights: safety, information, choice, voice and redress.
3. External Environmental Changes Drive the Need for Risk Management
Businesses operate in a dynamic world where the only thing for certain is that things will change. Change can bring both risk and reward. In this lesson, you'll learn how change in the business environment drives the need for risk management.
4. What is a Financial Investment? - Definition, Types & Examples
Learn about the basics of financial investments and some of the key terminology that is important to understand. Find out about some of the most common types of financial investments and the unique attributes of each.
5. Return on Investment: Definition, Formula & Example
Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.
6. Investment Opportunities in Stocks and Bonds
Investors often turn to the stock and bond markets when investing their money. Each market offers opportunities and risks for the individual investor. In this lesson, we'll explore the nature of these investments.
7. Investment Opportunities in Mutual Funds and Exchange-Traded Funds
Investing in the stock market is not limited to individual stocks. Investors can also invest in mutual funds and exchange-traded funds. In this lesson, you'll learn about these opportunities, as well as their advantages and disadvantages.
8. What is Preferred Stock? - Definition, Types & Advantages
This lesson will define the hybrid investment security called preferred stock. The various types of preferred stocks will be explained and advantages of each will be explored.
9. Institutions of the U.S. Banking System
The United States banking system is diverse and consists of many different types of institutions. In this lesson, you'll learn about commercial banks, savings and loan associations, credit unions, and investment banks.
10. Private Investment and Real Interest Rates
When you borrow money, where does that money come from and why is it available? In this lesson, you'll learn about the market for loanable funds, where savers deposit money and entrepreneurs borrow money to finance private investment.
11. How to Calculate Present Value of an Investment: Formula & Examples
This lesson will provide an overview of how to calculate the present value of an investment. Various examples will also be explored using the present value formula. You can test your knowledge of the material with a quiz at the end of the lesson.
12. Basic Techniques of Quantitative Business Analysis
Quantitative business analysis requires the use of simple mathematical calculations to make financial decisions. By having a good understanding of fractions, decimals and percentages, creating and analyzing charts, graphs and tables is easy.
13. Making Estimates and Predictions using Quantitative Data
Watch this video lesson to learn how you can read a scatter plot to learn more about a particular situation. Also learn how you can make estimates within the range of data you have and predict what may happen outside the range of data.
14. Consumer Goods: Definition, Types & Examples
We all purchase and consume goods every day. Most of those goods satisfy a need or want and are called consumer goods. They are different than those goods that are used as input to produce other goods. In this lesson, you will learn about types of consumer goods and take a quiz.
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