| A | B |
|---|
| Everything an individual or household owns with monetary value | Assets |
| Earning interest on interest | Compounding Interest |
| A business that offers banking and finance services | Depository Institution |
| The end result of something a person intends to acquire, achieve, do, reach, or accomplish | Goals |
| The price of money. How much you pay to borrow money. | Interest |
| The percentage rate paid on money invested or saved | Interest Rate |
| The purchase of assets with the goal of increasing future income | Investing |
| The amount of money needed to pay for the necessities and comforts currently enjoyed | Level of Living |
| Debts or what is owed to others | Liabilities |
| How quickly and easily an asset can be converted into cash | Liquidity |
| The amount of an individual’s take‐home pay after taxes and other deductions have been taken out | Net Income |
| Amount of money left when liabilities are subtracted from assets | Net Worth |
| Describes an individual or family’s financial condition on a specified date | Net Worth Statement |
| The value of the next best alternative that must be given up. Opportunity Lost | Opportunity Cost |
| A saving strategy that states to set aside a predetermined portion of money for saving each time a person is paid before using any of the money for spending | Pay Yourself First |
| The original amount of money saved or invested | Principal |
| The profit or income generated by savings and investing | Returns |
| The portion of current income not spent on consumption | Savings |
| A paper or electronic document used to record both planned and actual income through expenditures over a period of time | Spending Plan |
| Minimum necessities, comforts, or luxuries thought to be essential | Standard of Living |
| U. Money paid out or received in the future is not equivalent to money paid out or received today. The value of the dollar in the future, will be worth a different amount than it is today. (Inflation) Movie Ticket today $9.00 …Future $12.00? | Time Value Of Money |
| V. Giving up one thing for another | Trade-off |
| W. A measurement of how much a person or household owns once all debts have been paid | Wealth |
