Upon successful completion of this unit, you will be able to:

  • Explain the purpose of a personal budget and the “pay-yourself-first” philosophy;
  • Describe budget analysis and record-keeping methods used in the budgeting process;
  • Discuss the importance of savings and establishing an emergency fund;
  • Compute interest on savings at a fixed interest rate and compound interest; and
  • Explain how inflation affects savings and purchasing power.
Back to 'Unit 2: Budgeting and Saving'