Adult financial life can be overwhelming. Among the most bewildering of adult responsibilities is money management. Balancing checkbooks, understanding bank statements, getting credit—all of these are complex and intimidating, but necessary skills. Join Kate, a recent high school graduate living at home, as she struggles to get her finances in order. Realizing that she knows almost nothing about finance, she asks for help. The first thing she learns is the importance of a sound spending plan that takes into account the different types of expenses—fixed, flexible, and periodic. Learn how to set short-term goals (for a stereo or a prom dress) and how to set long-term goals (for a car or a house). A detailed breakdown of taxes reminds viewers that they will not get all the money they expect from their paychecks and illustrates where the missing money goes. We follow Kate as she balances and reconciles her checkbook, thus demonstrating the basic principles of money management. Finally, students learn about credit: how to get it, the advantages and disadvantages of the different types of credit cards, interest, and finance charges. The program concludes with an explanation of the Truth in Lending Law. A thorough and entertaining introduction to the basics of money management! A Cambridge Educational Production. (30 minutes)
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