| A | B |
|---|
| Service | A task that a person or a machine performs for you. |
| Personal finance Planning | Is arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals. |
| Opportunity cost | A trade-off; what is given up when making one choice instead of another. |
| Liquidity | The ability to easily convert financial assess into cash without loss in value. |
| Good | A physical item that is produced and can be weighted or measured. |
| Economics | The study of the decisions that go into making, distributing, and using foods and services. |
| Economy | Consists of the ways in which people make, distribute, and use their goods and services. |
| Supply | The amount of goods and services available for sale. |
| Demand | The amounts of goods and services peoples are willing to buy. |
| Federal Reserve System (Feds) | 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 of services. |
| Goals | The things you want to accomplish. |
| Values | The beliefs and principles you consider important, correct, and desirable. |
| Interest | The price that is paid for the use of another’s money. |
| Time value of money | The increase of an amount of money due to earned interest or dividends. |
| Principal | The original amount of money on deposit. |
| Future 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 have a desired amount in the future. |
| Money Management | Planning how to get the most from your money. |
| Safe-deposit box | A small, secure storage compartment that you can rent in a bank, usually for $100 a year or less. |
| Personal financial statement | A document that provides information about an individual’s current financial position and presents a summary of income and spending. |
| Net worth | The difference between the amount that you own and the debts that you owe. |
| Assets | Any items of value that an individual or company owns, including cash, property, personal possessions, and investments. |
| Wealth | An abundance of valuable material possessions or resources. |
| Liquid assets | Cash and items that can be quickly converted to cash. |
| Real estate | Land and any structures that are on it, such as a house or any other building that a person or family owns. |
| Market value | The price at which property would sell. |
| Liabilities | The debts that you owe. |
| Insolvency | Financial state that occurs if liabilities are greater than assets. |
| Cash Flow | The money that actually goes into and out of your wallet and bank account. |
| Income | Also called cash inflow is the money you receive. |
| Take-home pay | Or the net pay is the amount of income left after taxes and other deductions are taken out of your gross pay. |
| Discretionary income | The money left over after paying essentials, such as food, clothing, shelter, transportation, and medication. |
| Surplus | Extra money that can be spent or saved, depending on a person’s financial goals and values. |
| Deficit | The financial situation that occurs when more money is spent than is earned or received. |
| Budget | A plan for using money to meet wants and needs. |
| Consumer price index (CPI) | The measure of the changes in prices for commonly purchased goods and services in the United States. |
| Budget variance | The difference between the budgeted amount and the actual amount that you spend. |
