| A | B |
|---|
| Personal financial planning | ARRANGING TO SPEND, SAVE, AND INVEST MONEY TO LIVE COMFORTABLY, HAVE FINANCIAL SECURITY, AND AHIEVE GOALS. |
| Goals | THINGS YOU WANT TO ACCOMPLISH |
| Values | BELIEF AND PRINCIPLES YOU CONSIDER IMPORTANT, CORRECT, OR DESIRABLE |
| Oppertunity cost (trade off) | WHAT IS GIVEN UP WHEN MAKING ONE CHOICE INSTEAD OF ANOTHER. |
| Liquidity | ABILITY TO EASILY CONVERT FINANCIAL ASSETS INTO CASH WITHOUT LOSS OF VALUE. |
| Services | TASK THAT A PERSON OR MACHINE PERFORMS FOR YOU. |
| Good | PHYSICAL ITEM THAT IS PRODUCED AND WEIGHED OR MEASURED. |
| Federal reserve system | CENTRAL BANKING ORGANIZATION OF THE U.S. |
| Inflation | 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 AMOUNT OF MONEYDUE TO EARNED INTEREST OR DIVIDENDS |
| Principal | ORIGINAL AMOUNT OF MONEY |
| Future value | AMOUNT YOUR ORIGINAL DEPOSIT WILL BE WORTHIN THE FUTURE BASED ONE EARNING A SPECIFIC INTERSET RATE OVER A SPECIFIC PERIOD OF TIME. |
| Annuity | SERIES OF EQUAL REGULAR DEPOSITS |
| Present value | AMOUNT OF MONEY YOU WOULD NEED TO DEPSOIT NOW IN ORDER TO HAVE A DESIRED AMOUNT IN THE FUTURE |
| Money management | PLANNING HOW TO GET THE MOST FROM YOUR MONEY |
| Safe deposite box | SMALL SECURE STORAGE COMPARTMENT THAT YOU CAN RENT IN A BANK USUALLY FO $100 OR LESS |
| Personal financial statement | DOCUMENT THAT PROVIDES INFORMATION ABOUT AN INDIVIDUAL'S CURRENT FINANCIAL POSITION AND PRESENTS A SUMMARY OF INCOME AND SPENDING |
| Personal balance sheet | FINANCIAL STATEMENT THAT LISTS ITEMS OF VALUE OWNED, DEBTS OWED, AND A PERSON'S NET WORTH |
| Net worth | DIFFERENCE BETWEEN THE AMOUNT THAT YOU OWN AND THE DEBTS THAT YOU OWE |
| Assests | ANY ITEMS OF VALUE THAT AN INDIVIDUAL CASH, PROPERTY, PERSONAL POSSESIONS, AND INVESTMENTS |
| Wealth | AN ABUNDANCE OF VALUABLE MATERIAL POSSESIONS 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 | PRICE AT WHICH PROPERTY WOULD SELL |
| Liabilities | DEBTS YOU OWE |
| Insolvency | FINANCIAL STATE THAT OCCURS IF LIABILITIES ARE GREATER THAN ASSETS |
| Cash flow | MONEY THAT ACTUALLY GOES INTO AND OUT OF YOUR WALLET, AND BANK ACCOUNTS |
| Income (cash flow) | IS THE MONEY YOU RECIEVE |
| Discretionary income | AMOUNT OF MONEY LEFT OVER AFTER PAYING FOR THE ESSENTIALS SUCH AS FOOD CLOTHING SHELTER TRASNPORTATION AND MEDICATION |
| Surplus | EXTRA MONEY THAT CAN BE SPENT OR SAVED |
| Take home pay | AMOUNT OF INCOME LEFTAFTER TAXES AND OTHER DEDUCTIONS ARE TAKEN OUT OF YOUR GROSS PAY |
| Deficit | FINANCIAL SITUATION THAT OCCURS WHEN MORE MONEY IS SPENT THAN EARNED OR RECIEVED |
| Budget | PLAN FOR USING MONEY TO MEET WANTS AND NEEDS |
| Consumer price index | (CPI) MEASURE OF THE CHANGES IN PRICE FOR COMMONLY PURCHASED GOODS AND SEVICES IN THE U.S. |
| Budget Variance | DIFFERENCE BETWEEN THE BUDGET AMOUNT AND THE ACTUAL AMOUNT THAAT YOU SPEND |
