| A | B |
|---|
| Financial planning | Managing money continuously through life in order to reach your financial goals |
| Long‐term goals | A goal that will be attained in more than one year |
| Needs | Goods or services that are required for survival |
| Opportunity cost | The value of the next best alternative that must be forgone as a result of a decision |
| Short‐term goals | A goal that will be attained in less than one year |
| Trade‐off | Giving up one thing for another |
| Values | A fundamental belief or practice about what is desirable, worthwhile, and important to an individual |
| Want | The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival |
