| A | B |
|---|
| Personal Financial Planning | Arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals |
| Goals | Things you want to accomplish |
| Values | The beliefs and principles you consider important, correct, and desirable |
| Opportunity Cost | What 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 machine performs for you |
| Good | 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 | The amount of goods and services available for sale |
| Demand | The amount of goods and services people are willing to buy |
| Federal Reserve System | aka Fed. The central banking organization of the United States |
| Inflation | Rise in the level of prices for goods and services |
| Consumer | A person who purchases and uses goods and 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 |
| Principal | original amount of money on deposit |
