| A | B |
|---|
| Rainy Day Fund | Money that is readily available for unexpected expenses |
| Values | Things that a person considers to be important |
| Financial/Investment Plan | An organized process of allocating income and investing to achieve one's financial goals |
| Net Worth | What you own minus what you owe |
| Pay yourself first | The idea that one should regularly set aside money for savings and long term financial goals |
| Goals | An end result toward which effort is directed |
| Opportunity Cost | What you give up in order to buy something else |
| Diversification | The process of reducing risk by spreading money among various types of investments |
| Liquidity | how quickly something can be converted to cash |
| Certificates of Deposit | purchased for specific amounts of money at a fixed rate of interest for a specified period of time. There are penalties for early withdrawal |
| Needs | something you need for survival |
| Wants | something you feel you need to have |
