| A | B |
|---|
| financial planning | Ongoing process that can take you from where you are to where you wish to be financially. |
| financial security | Ability to meet your essential needs without taking on more debt than you can repay. |
| financial literacy | Possession of a body of financial knowledge, a set of basic skills, and the ability to apply your knowledge and skills to making informed and responsible financial choices. |
| management | the process of organizing and using your resources to achieve predetermined objectives. |
| goods | Tangible items that can be touched, used, and purchased, such as food or clothing. |
| services | Intangible activities that another person usually performs for a fee, such as cleaning services or doing tax returns. |
| needs | necessities. |
| wants | nonessential things you would like to have. |
| values | personal beliefs about what is important and desirable. |
| value system | the overall structure of values and goals that guides behavior and provides a sense of direction. |
| ethics | the moral principles or beliefs that direct a person’s behavior |
| goal | an objective you wish to attain. |
| priority | a value or goal that is given more importance than other values and goals. |
| standard | Established measure of quality, value, or quantity. |
| resources | Tools you can use to reach goals. |
| cost-benefit analysis | a method of weighing the costs against the benefits of an action, a purchase, or a financial decision. |
| marginal benefit | the change in total benefit of using one additional unit. |
| marginal cost | the change in total cost of using one more unit |
| trade-off | Choice you give up when you make one choice over another. |
| opportunity cost | Value of the option you gave up. |
| systematic decisionmaking | process of choosing a course of action after evaluating available information and weighing the costs and benefits of alternative actions and their consequences. |
| economic conditions | the state of the economy at a given time |
| recession | Period of slow or no economic growth. |
| inflation | Period of rising prices. |
| demographics | the statistical characteristics of a population. |
| culture | the beliefs, behaviors, and other characteristics common among members of a group or society |
| technology | the application of science and research to human life and environments. |
| globalization | the worldwide spread and integration of production, markets, communications, and technology. |
