| A | B |
|---|
| Personal financial planning | Arranging to spend, save, and invest money into living comfortably, have financial security, and achieve goals |
| Goals | The 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 losing value |
| Service | A task that a person or machine preforms 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 | The amount of goods and services available for sell. |
| Demand | 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 and/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 in order to have a desired amount in the future |
