About This Chapter
Personal Financial Literacy - Chapter Summary
This chapter is designed to ensure students fully understand the basics of personal financial literacy. Lessons explore definitions, mathematical operations and examples to give students a well-rounded look at this topic. Mobile accessibility makes it possible for students to review lessons anywhere with an Internet connection. After completing this chapter, students will have the knowledge to:
- Define, identify types and share the history of the interest rate
- Demonstrate how to solve interest problems
- Use the formula to find the simple interest rate
- Share the meaning of and use the formula for compound interest
- Describe the roles and importance of managing personal investments
- Show how to find the real cost of college
- Exhibit an ability to calculate the cost of a 2- and 4-year college education
Video and text lessons explore personal financial literacy concepts in an engaging manner. Students can review the lessons anytime, day or night, to ensure they learn at their own pace. When ready, students can assess their knowledge of the lessons by taking short quizzes. Any questions about this chapter's topics can be submitted to our experts.
1. What is Interest Rate? - Definition, Types & History
Everything costs money, even money. In this lesson, you'll learn about interest rates - specifically, what they are, how they are determined, and what they mean for an individual and an economy.
2. How to Solve Interest Problems: Steps & Examples
If you want to know how your money can earn money, then it's essential to learn about solving interest problems. In this lesson, we'll practice calculating interest amounts and interest rates.
3. How to Find Simple Interest Rate: Definition, Formula & Examples
When we borrow a certain sum of money over a period of time, we agree that we will pay it back, along with a fee, known as the interest owed. Similarly, when we invest a sum of money in a savings account, the account earns us interest. This lesson will show you how to calculate a certain type of interest called simple interest.
4. What is Compound Interest? - Definition, Formula & Examples
In this lesson, find out what compound interest is and what makes it different from simple interest. Then learn the formula for calculating compound interest. Finally, compare both types of interest with a graph that shows the growth in interest.
5. Managing Personal Investments: Roles & Importance
After reading this lesson, you will know why you need to evaluate and monitor your investment choices. You will learn why keeping an accurate record is essential for your financial success.
6. Finding the Real Cost of College: Tips for Students
Many students think tuition is the only cost they need to worry about when calculating their college budget, but the cost of college goes beyond tuition. This lesson will help you learn to estimate your financial needs when planning your education.
7. Calculating the Cost of 2 & 4 Year College Education
The cost of attending college can vary greatly depending on which type of college you choose to attend. Learn about the costs associated with attending different types of colleges so you can make the best decision for you!
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