| A | B |
|---|
| Financial Planning | Process of setting goals, developing a plan to achieve them, and putting the plan into action. |
| Needs | Things we must have to survive; for example, food, clothing, water, shelter. |
| Wants | Things that make life more interesting and fun but that people can live without if they have to. |
| Values | The beliefs, qualities, or standards that you consider important or desirable. |
| Goal | A statement of something a person wants or needs to do. |
| Short-term goals | Goals set that you want to achieve within the next three months. |
| Intermediate-term goals | Goals set for three months to a year. |
| Long-term goals | Goals that will take you more than a year to achieve. |
| Delayed gratification | The willingness to give up something you want now in order to get something better in the future. |
| S in smart goals | Specific |
| M in smart goals | Measurable |
| A in smart goals | Attainable |
| R in smart goals | Realistic |
| T in smart goals | Time bound |
| Cash flow | Measurement of the money you receive and the money you spend. |
| Opportunity cost | The value of what is given up when you choose one option over another. |
| Satellite decisions | When a major decision leads to several smaller ones. |
