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Financial Decisions Vocabulary - Personal Finance

AB
NeedsGoods or services that are required for survival
Opportunity CostThe value of the next best alternative that must be forgone as a result of a decision
Trade-OffGiving up one thing for another
ValueA fundamental belief or practice about what is desirable, worthwhile, and important to an individual
WantThe desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival



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