| A | B |
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| Goal | the object of a person’s ambition or effort. An aim or desired result. |
| Short-term goal | something a person want to accomplish in the near future (usually within a year.) |
| Long-term goal | a goal that takes a long time to achiever. |
| Consequence | a result or effect of an action or condition. |
| Opportunity Cost | the loss of potential gain from other alternatives when one alternative is chosen. The gains that would be achieved through selection of the next best option. |
| Trade-off | the sacrifice that must be made when one choice is made over another. What a person gives up to attain a choice. |
| Resources | goods or services available to individuals and businesses to be used to produce consumer products. |
| Scarcity | the fundamental economic problem of having unlimited wants in a world of limited resources. |
| Distribution | the way that total output |
| Wealth management | involves the planning and choices made regarding the use of financial assets. |
| Allocation | an analysis of how limited resources are distributed. |
| Institution | ’a society or organization founded for a religious |
| Property rights | the theoretical socially-enforce constructs in economics for determining how a resource or economic good is used and owned. |
| Financial institution | a company engaged in the business of dealing with monetary transaction.. |
| Nonprofit organization | an organization which uses its surplus revenues to further achieve its purpose or mission rather than distributing it as income to owners or shareholder. |
| Cash | also known as money. Usually includes bank accounts and marketable securities. |
| Credit | a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future – generally with interest. |
| Debit | ”an amount of money owed by a person |
| EFT | electronic transfer of funds between accounts in a an institution or between two financial institutions on the request of an account holder. |
| Medium of exchange | an intermediary instrument accepted as a stand of value by all parties and used to facilitate the trade of goods between two parties. |
| Unit of measure | standard unit or system of units by means of which a quantity is accounted for and expressed. |
| Store of value | ”a commodity |
| Incentives | ”a reward for specific behavior |
| Values | the regard that something is held as important or of worth. |
| Risk | uncertainity that an investor is willing to take to realize a gain from an investment. |
| Return | the gain or loss of a security in a particular period. |
| Profit | the difference between the revenue received from the sale of an output and the value of the inputs used to product it. |
| Interest | the charge for the privilege of borrowing money or the incentive paid for the use of money. |
| Self-interest | actions that elicit the most personal benefit. |
| Saving | the postponement of the immediate gratification of what could be had today in order to maintain wealth to meet future wants or needs. |
| Investing | the purchase of goods that are not consumed today but are used in the future to create wealth. |
| Financial needs | wants or needs that can be met through the use of financial assets. |
| Financial goals | targets driven by specific future financial needs. |
| Good faith | a deposit made into an account by a buyer to show that he/she has the intention of completing a deal. |
| Disclosure | the act of releasing all relevant information pertaining to the finances of a company or individual. |
| Float | the total number of regular shares that a company has issued to the public and are available for investors to trade. |
| Time value of money | the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity through interest. |
| Inflation | a general increase in prices and fall in the purchasing value of money. |
| Interest rate | the proportion of a loan that is charged to the borrower. It is typically expressed as an annual percentage of the outstanding loan. |
| Present value | the value in the present of a sum of money in contrast to some future value it will have when it has been invested with compound interest. |
| Compound interest | interest calculated on the initial principal as well as the accumulated interest of previous periods of a deposit or loan. |
| Wage | payment typically paid on a daily or weekly basis by an employer to an employee. |
| Salary | a fixed regular payment typically paid on a monthly or biweekly basis but often expressed as an annual sum made by an employer to an employee. |
| Rent | a tenant’s regular payment to a landlord for the use of property or land. |
| Dividends | a sum of money paid regularly by a company to its shareholders out of its profits or reserves. |
| Transfer payments | a one-way payment to a person for which no money |
| On-boarding | the action or process of integrating a new employee into an organization or familiarizing a new customer or client with one’s products or services. |
| W-4 | tells the employer the correct amount of tax to withhold from an employee’s paycheck based on marital status and number of exemptions. |
| Personal allowances | an amount of money that can be earned each year before you have to start paying tax on your income. |
| Exemption | removal from taxation of a particular item or for a particular use of funds. |
| Form I-9 | used for verifying the identity and employment authorization of an individual. |
| Pay period | a recurring length of time over which employee time is recorded and paid. |
| Gross income | the total income earned for a particular time period. |
| Net income | the total income earned less taxes and other deductions. |
| Deduction | any item or expense subtracted from gross income. |
| Pension | a regular payment made during a person’s retirement from an investment fund to which that person or their employer has contributed during their working life. |
| 401(k) | a qualified employer-established plan to which eligible employees may make salary deferral contributions in order to invest into future retirement. |
| FICA | Federal Insurance Contributions Act – a US federal payroll tax paid by both employees and employers to fund Social Security and Medicare. |
| Asset | a resource or thing of value that is owned by an individual or company. |
| Liability | amounts owed to others. |
| Net worth | the difference between assets and liabilities. A measure of actual wealth. |
| Personal budget | ”a finance plan that allocates personal income towards expenses |
| Income | money received for work or through investments. |
| Expenses | the cost required for something or the money spend on something. |
