| A | B |
|---|
| Consumer | A person or organization that uses a product or service |
| Economy | A system by which goods and services are produced and distributed |
| Personal Finance | All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting |
| Credit | The granting of a loan and the creation of debt; any form of deferred payment |
| Loan Shark | A person or business that offers loans at extremely high interest rates |
| Recession | A period of temporary economic decline during which trade and industrial activity are reduced; generally identified by a fall in gross domestic product (GDP) |
| Financial Literacy | The knowledge and skill set necessary to be an informed consumer and manage finances effectively |
| Interest | A fee paid by a borrower to the lender for the use of borrowed money. |
| Debt | An obligation of repayment owed by one party to a second party |
| Loan | A debt evidenced by a ʺnote,ʺ which specifies the principal amount, interest rate and date of repayment |
| Emergency fund | $500 in readily available cash to be used only in the event of an emergency |
| Five Foundations | The five steps to financial success |
| Sinking fund | Saving money over time for a large purchase |
| Debt snowball | Preferred method of debt repayment; list of all debts from smallest to largest bal; min. payments made to all debts except the smallest, which is attacked with the largest possible payments |
| 20, 80 | Knowledge and behavior related to managing money percentages. |
| Behavior | Math is easy, this is challenging. |
