| A | B |
|---|
| earning | gaining money by working |
| Spending | using money to purchase goods and services |
| opportunity cost | The highest-valued alternative |
| trade-off | The choice of one item while giving up another |
| Responsible spending | researching and planning purchases in advance |
| Saving | putting aside money for later use |
| Responsible saving | forming the habit of saving regularly |
| Borrowing | obtaining money, goods, or services at present in exchange for the promise of future payment |
| Responsible borrowing | borrowing only what can be paid back when due |
| standard of living | The style of living that a person can afford |
| savings rate | The amount of money people save |
| financial security | Having enough money saved to be able to withstand crises and emergencies |
| credit | Borrowing; buying now, paying later |
| interest rate | Percentage of amount borrowed |
| Responsible earning | involves realizing that career choices greatly affect lifetime earnings |
