| A | B |
|---|
| Personal financial planning | arranging to spend save and invest money to live comfortably |
| Goals | the things you want to accomplish |
| Values | the beliefs and principles you consider important |
| Liquidity | the ability to easily convert financial asset 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 |
| Consumer | 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 |
| Principal | the original amount of money on deposit or borrowed |
| 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 |
| Scarcity | the economic issue of humans having unlimited wants and needs and limited resources |
| Opportunity Cost | the most valuable alternative that is not chosen when a choice is made |
| Incentive | the reason that a choice is made |
| Short-term goals | take one year or less to achieve (must be specific |
| Intermediate goals | take two to five years to achieve (must be specific |
| Long-term goals | take more than 5 years to achieve (must be specific |
| Accumulate | to collect |
| Money Management | the day to day financial activities necessary to get the most from your money |
| Safe-deposit box | a small |
| Personal Financial Statements | give information about your current financial position and presents a summary of income and spending (could include balance sheets and cash flow statements) |
| Personal Balance Sheet | net worth statement |
| Net Worth | the difference between the amount you own and the debts you owe |
| Assets | any items of value that you own |
| Wealth | property that has a money value or an exchangeable value |
| 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 | the debts that you owe |
| Insolvency | the inability to pay debts when they are due |
| Cash Flow | the movement (cash) in and out of your wallet and/or bank account |
| Net Pay | take home paythe amount of income left after taxes and other deductions are subtracted from your gross pay |
| Discretionary income | the money you have left after paying for your essentials |
| Surplus | extra money that you can spend or save |
| Deficit | spending more than you received |
| Budget | a plan for spending and investing your money to meet your wants and needs |
| Budget Variance | the difference between the budgeted amount and the actual amount spent |
| Cultivate | promote the growth of |
| Approach | method |
| Transactions | dealings |
| Down Payment | a portion of the total cost of an item that must be paid at the time of purchase |
| Impulse buying | purchasing items on the spur of the moment |
| Open dating | a labeling method that indicates the freshness |
| Unit Pricing | the use of a standard unit of measurement to compare the prices of packages that are different sizes |
| Rebate | partial refund of the price of a product |
| Warranty | a written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned |
| Service Contract | a separately purchased agreement by the manufacturer or distributor to cover the costs of repairing the item |
| Fraud | Dishonest business practices that are meant to deceive |
| Document | Record |
| Mediation | attempt by a neutral third party to resolve a conflict between a customer and a business through discussion and negotiation |
| Arbitration | a process whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding |
| Small claims court | a court that deals with legal disputes that involved amounts below a certain limit |
| Class-action suit | a legal action on behalf of all the people who have suffered the same injustice |
| Legal aid society | a network of community law offices that provide free or low-cost legal assistance |
| Eligible | qualified |
