| A | B |
|---|
| personal financial planning | the way people spend, save, and invest their money so that they can have the kind of life they want as well as financial security |
| goals | the things a person wants to accomplish |
| values | the beliefs and principles a person considers important, correct, or desirable |
| opportunity cost | the possibilities that a person gives up when making one choice instead of another |
| liquidity | the ability to easily convert your financial resources into cash without a loss in value |
| service | a task that a person or a machine performs for you |
| good | physical object that is produced and can be weighed or measured |
| supply | amount of goods and services available for sale |
| economics | the study of the decisions that go into making, distributing, and using goods and services |
| economy | consists of the ways in which people make, distribute, and use their goods and services |
| demand | the amount of goods and services people are willing to buy |
| Federal Reserve System | the central banking organization of the United States |
| inflation | the rise in the level of prices for goods and services |
| consumer | a person who purchases and uses goods or services |
| interest | the price that is paid for the use of another's money |
| time value of money | the increase of an amount of money as a result of interest or dividends earned |
| principal | the amount of money you deposit and on which interest is paid |
| fututre value | the amount your original deposit will be worth in the future based on earning a specific interest rate over a specific period of time |
| annuity | a series of equal regular deposits |
| present value | the amount of money you would need to deposit now in order to attain a certain desired amount |
