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Standard 1.3

Standard 1.3. General Financial Literacy. Revised: Shelley Bracken, 2011. Standard 1 Students will use a rational decision-making process to set and implement financial goals. Objective 3 Relate financial decisions to personal and societal consequences. Importance of Numbers. DENMARK.

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Standard 1.3

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  1. Standard 1.3 General Financial Literacy Revised: Shelley Bracken, 2011
  2. Standard 1Students will use a rational decision-making process to set and implement financial goals. Objective 3 Relate financial decisions to personal and societal consequences.
  3. Importance of Numbers DENMARK
  4. Inflation An increase in the price of goods and services. A dollar in the future won’t buy as much as a dollar today. Did you know… Inflation usually averages between 3% and 4% each year. Inflation has influenced our economy for decades ranging from .5% to 18%. In 1971 a first class stamp cost 8 cents.
  5. Debt The entire amount of money a person owes to lenders.
  6. Bankruptcy A legal process to get out of debt when you can no longer make all your required payment. Source: NEFE
  7. Reasons for Bankruptcy Medical Expenses Job Loss Business Losses Natural Disaster Credit Card Debt
  8. Reasons for Bankruptcy DEBT Source: Consumer Bankruptcy Project III; bankruptcy filing data from Administrative Offices of the U.S. Court, 1999. Salt Lake Tribune
  9. Bankruptcy Basics Chapter 7 LIQUIDATION Chapter 13 REORGANIZATON
  10. Consequences of Bankruptcy Influences financial freedom Limits choices Pay more for credit Other people absorb your debt
  11. Changes to Bankruptcy Law New law in effect October 17, 2005. New limits on personal bankruptcy. Requires those filing to get counseling before they are allowed to file. Bars filers with above-average income from filing Chapter 7 (liquidation). Those who have $100/month left over after paying certain debts and expenses have to submit repayment plan under Chapter 13 guidelines (reorganization).
  12. Assessment IdeaStandard 1 Objective 3 Write a one page reflective paper on bankruptcy. Use notes, books, and all information given in class to synthesize your opinions and insights on bankruptcy. Consider the causes of the high Utah bankruptcy rates, who is filing, why they are filing, and how it can be prevented. Include statistics from Utah’s current bankruptcy situation, and the consequences of bankruptcy. Explain the difference between Chapter 7 and Chapter 13, and how the new filing law influences each.
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