| A | B |
|---|
| Do it Yourself | When you complete a task yourself rather than paying someone else |
| Liquidity | How quickly and easily assets can be accessed and converted into cash |
| Emergency Savings | Cash set aside to cover the cost of unexpected events |
| Compound Interest | Earning interest on interest |
| Interest Rate | Percentage rate used to calculate interest |
| Interest | Price paid for using someone else’s money |
| Time Value of Money | Money available now (today) is worth more than the same amount if received in the future |
| Consumption | The purchase of goods and services |
| Savings | Portion of income not spent on consumption |
| Pay Yourself First | Saving for the future by putting money aside before paying regular monthly bills or using |
| Money Market Account | A account at a depository institution that usually has minimum balance requirements and tiered interest rates |
| Tiered Interest Rate | The amount of interest earned depends on the account balance |
| Dividend | The share of profits distributed in cash |
| Inflation | The rise in the general level of prices |
| Certificate of Deposit | An account at a depository institution that is used for a fixed period of time and allows restricted access to the funds deposited |
| Savings Tools | Accounts offered by depository institutions whose main purpose is to help people manage their money |
| Brokerage Firm | Facilitates the buying and selling of investments from a stock exchange |
| Investment | Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss |
| Rate of Return | The total return on an investment expressed as a percentage of the amount of money saved |
| Stock | A share of ownership in a company |
