| A | B |
|---|
| Personal Financial Planning | Arranging to spend, save, and invest money to live comfortably. Having financial security, and achieve goal. |
| Goals | Things you want to accomplish |
| Values | Are the beliefs and principles you consider important, correct, and desirable. |
| Opportunity Cost | Trade-off that is given up when making one choice instead of another. |
| Liquidity | The ability to easily convert financial assets into cash without loss in value. |
| Service | A task that a person or a machine performs for you. |
| Good | A physical item that is produced and can be weighed or measured. |
| 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. |
| Supply | Is the amount of goods and services available for sale. |
| Demand | Is 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 due to earned interest or dividends. |
| Principle | 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 |
| Personal Balance Sheet | A financial statement that lists items of value owned, debts owned, and a person's net worth. |
| Net Worth | The difference between the amount that you own and the debts that your own. |
| Assets | Any items of value that an individual or company owns. |
| Wealth | (Liquid Assets,Real estate,Personal Possessions, and investment assets)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. |
| Market Value | The price at which property would sell. |
| Liabilities | Debts that you owe. |
| Insolvency | A 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 accounts. |
| Income | The money you receive. |
| Take-Home Pay | 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 for the essential, 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 then is earned or received. |
| Budget | Plan for using money to meet wants and needs. |
| Consumer Price Index (CPI) | A 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. |
