My Best Birthday Ever

Study Unit

Consumer Math, Part 3

Are you developing a feeling for handling your money? By now, you should be acquiring a vision of the “big picture,” the master plan that you’ll use to help you manage your money.

In this study unit, you’ll receive information about different financial areas of your life—your car, your personal insurance, and your savings and investment plans.

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When you complete this study unit, you’ll be able to
• • • • • List the factors to consider before buying a new or used car Discuss the options available regarding your personal insurance Determine when you’ve saved enough money to start investing Explain the difference between common stock and preferred stock Explain why it’s important for you to plan for your retirement

Refer to the Glossary at the end of the study unit if you’re unfamiliar with any terms mentioned in the text. After absorbing this material, you may want to organize your own master plan, following the suggestions given at the end of this study unit.

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YOUR CAR YOUR PERSONAL INSURANCE
What Is Insurance? Life Insurance Insuring Your Personal Possessions Health Insurance Buying a New Car Buying a Used Car

1 9
9 10 13 13 1 7

Contents Contents

YOUR SAVINGS

15

USING A CALCULATOR AND COMPUTER FOR CONSUMER MATH
Your Calculator How to Use a Calculator Computers Are Everywhere Your Computer

Acquiring the Savings Habit Where Shall I Put My Savings? Investments The Stock Market Bonds Mutual Funds Reevaluating Your Investments Retirement Planning

15 16 18 19 22 23 24 24

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28 28 30 31

YOUR MASTER PLAN

34

SELF-CHECK ANSWERS GLOSSARY

Beginning Your Plan A Little Dreaming Goals Adjusting for Goals Help with Your Master Plan

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34 34 34 36 36

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Consumer Math, Part 3
YOUR CAR

To most people, having “wheels” is as important as having a place to live. The mobility a car gives them makes it a highly prized item. Because a car is a very...