| 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 | Known as a trade-off, is 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 | Known as a task that a person or a machine performs for you. |
| Good | A physical item that is produced and can be weighed or measured. |
| Economics | The study of decisions that go into making, distributing, and using goods and services. |
| Economy | Consists of ways in which people make, distribute, and use their goods and services. |
| Supply | The amount of goods and services available for the sale. |
| Demand | The amount of goods and services people are willing to buy. |
| Federal Reserve System | Known as Fed, is 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 or services. |
| Interest | The price that is paid for the use of another's money. |
| Budget | An estimate of income and expenditure for a set period of time. |
| Fixed Expenses | Any expense that does not change from period to period, such as loan payments. |
| Variable Expenses | A cost that varies with the level of output. |
| Income | Money received on a regular basis. You work for the money that you earn. |
| Expenditures | The action of spending funds. |
| Priortize | Designate or treat something as more important than other things. |
| Periodic Expenses | Expenses that occur generally one to four times a year, instead of monthly, etc. |
| Discretionary Expenses | Determined by personal needs and wants and may be controlled. |
| Budget Surplus | Amount by which planned expenses exceed actual expenses. Opposite of budget deficit. |
| Budget Deficit | An excess of expenditures over revenues. |
