The Core Principles of Finance

• The time value of money
• Compensation for risk
• Don’t put your eggs in one basket
• Markets are smart
• No arbitrage

Personal Financial Literacy

Personal financial literacy is the ability to read, analyze, manage, and communicate about the personal financial conditions that affect material well-being. It includes the ability to discern financial choices, discuss money and financial issues without (or despite) discomfort, plan for the future, and respond competently to life events that affect everyday financial decisions, including events in the general economy (vitt, et al. 2000)