Chapter 3 Learning Outcomes

In this chapter, students will…
  • Understand the purpose of cash flow planning.
  • Identify reasons some people avoid having or sticking to a budget.
  • Identify changes in personal spending behavior that contribute to wealth building.
  • Explain the difference between a cash flow statement and a budget.
  • Develop a filing system for keeping financial records, both paper and electronic.
  • Describe record-keeping features that financial institutions provide for online account management.
  • Describe how to use different payment methods and banking features.
  • Define zero-based budget.
  • Develop a plan for spending and saving that has both long-term and short-term components.
  • Analyze how changes in circumstances can affect a personal budget.

Chapter 3 Vocabulary

  • Budget
  • Cash Flow Statement
  • Carbon Check
  • Envelope System
  • Impulse Purchase
  • Overdraft
  • Reconcile
  • Zero-Based Budget

Academic Standards Met in Chapter 3

    Financial Responsibility and Decision Making: Apply reliable information and systematic decision making to personal financial decisions.
  • HS-PF1-1: Take responsibility for personal financial decisions.
  • HS-PF1-4: Make financial decisions by systematically considering alternatives and consequences. 
    • Planning and Money Management: Organize personal finances and use a budget to manage cash flow.
  • HS-PF3-1: Develop a plan for spending and saving.
  • HS-PF3-2: Develop a system for keeping and using financial records.
  • HS-PF3-3: Describe how to use different payment methods.
  • HS-PF3-4: Apply consumer skills to purchase decisions.
  • HS-PF3-6: Develop a personal financial plan. 
    • Credit and Debt: Maintain creditworthiness, borrow at favorable terms, and manage debt.
  • HS-PF4-3: Describe ways to avoid or correct debt problems.
    • Saving and Investing: Implement a diversified investment strategy that is compatible with personal goals.
  • HS-PF6-3: Evaluate investment alternatives.

Files for Download

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Chapter 3

Chapter 3 Assignments

3.1 - Comparing Debit and Credit Cards
3.2 - Balancing Your Checkbook
3.3 - How to Manage Your Checking Account
3.4 - The Student Budget
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