| A | B |
|---|
| Values | Beliefs and principles you consider important, correct and desirable |
| Goals | Things you want to accomplish |
| 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 a machine performs for you |
| Demand | The amount of goods and services people are willing to buy |
| 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 |
| Federal reserve system | The central banking organization of the United States |
| Inflation | The rise of level of prices for goods and services |
| Consumer | Person who purchases and uses goods or services |
| Interest | Price that is paid the use of another’s money |
| Time value of money | The increase of and 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 |
| Annuity | A series of equal regular deposit |
| 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, for $100 a year or less |
| 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 back account |
| 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 |
| Surplus | Extra money that can be spent or saved |
| Deficit | The financial situation that occurs |
| Budget | Plan for using money to meets wants and needs |
| Consumer price index | 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 |
