| A | B |
|---|
| savings | a portion of current income not spent |
| goal | something a person intends to acquire, achieve, do, reach or accomplish |
| short term goals | can be achieved in less than one year |
| long term goals | can be achieved in a time period of more than one year |
| financial goals | specific objectives to be accomplished through financial planning |
| contingency plan | a plan for emergencies |
| saving and investment plan | prepares for meeting long-term needs and wants |
| pay yourself first | set aside a portion of money for saving each time a person is paid |
| financial institution | a business that holds and protects money for a person |
| money market | a type of account that pays a higher interest rate than savings account |
| certificate of deposit | an account that pays interest on a lump sum of money |
| savings account | a person should keep 3 to 6 months in this account |
| Inflation | The steady rise in the general level of prices |
| Liquidity | how quickly assests can be converted to cash |
| Compounding interest | making your money work for you by earning interest on interest |
| Checking account | a tool used to transfer funds deposited into an account to make a cash purchase |
| Cash Management | daily routine of handling money |
| Life Situation | a factor that influences financial planning |
