| A | B |
|---|
| Financial Planning | a process of setting goals, developing a plan to achieve them, and putting the plan into action |
| Needs | the very basic things we must have to survive |
| Wants | the things that make life more interesting and fun, but you could live without them if you had to |
| Values | the beliefs and practices in your life that are very important to you |
| Goal | something you aim for |
| Short-Term Goals | goals that you want to achieve within the next three months |
| Intermediate-Term Goals | goals that are set for three months to a year |
| Long-Term Goals | goals that will take you longer than a year to achieve |
| Opportunity Cost | because of limited resources, you may not be able to achieve both goals in a certain time frame;you must make a trade-off |
| Satellite Decisions | smaller descisions that were made from larger ones |
