The Actuarial Foundation

Money Math Learning Series
Personal Finance & Investments
James A. Tilley

Scope
This MoneyMath Learning Series textbook is generally appropriate for students in grades 9, 10, 11 of high school. Chapters 1, 2, 3, 8, 9, and 10 form the "core curriculum" and are the easiest to read and understand. As to reading level, Chapters 11, 12, and 13 are the most difficult, and are best suited to grade 11 and 12 students. Parents of students can also use this material. No deep knowledge of mathematics is required for study of this text. It is assumed that you know how to represent numbers as fractions, decimals, and percentages. For example, you should be able to determine that the fraction 1/16 (one sixteenth) can be expressed as 0.0625 in decimal form, and as 6.25% or 6¹% in percentage form.

Also, it is assumed that you know how to use a computer and a mouse, and that you have access, either at home or at school, to a computer with a spreadsheet or worksheet application installed, such as Microsoft Excel^TM or Lotus 1-2-3^TM. Most of the material in this text is developed through the use of spreadsheets. No algebraic equations are used in the text, and no knowledge of algebra is assumed. However, you will learn how to enter simple formulas into the cells of a spreadsheet.

Many software tools exist today to help people with their matters of personal finance and investments. Also, there are many special functions available in spreadsheet applications that perform financial calculations directly and painlessly. Yet, I believe that people cannot make sound financial decisions until they have some understanding of key financial concepts and until they know how to do the basic calculations themselves. There is no better method to figure out these calculations than playing around with simple spreadsheets. So, I have opted for spreadsheets as the "right" way for people to learn the basics of personal finance and investments. If they wish, advanced students can then graduate to a rigorous mathematical treatment of this subject.