A | B |
personal financial planning | arranging to spend, save, and invest money to live comfortably, have financial security and achieve goals |
goals | the things you want to accomplish |
values | the beliefs and principles you consider important, correct and desirable |
opportunity cost | aka a trade off, is what is given up when making one choice instead of another |
liquidity | the ability to easily convert financial assets into cash without loss in value |
service | a task that a person or machine performs for you |
good | a physical item that is produced and can be weighed or measured |
economics | the study of decisions that go into making, distributing, and using goods and services |
economy | consists of the ways in which people make, distribute an duse their goods and services |
supply | the amount of goods and services available for sale |
demand | the amount of goods and services people are willing to buy |
Federal Reserve System | aka "The Fed", the central banking organization of the U.S. |
inflation | the rise in the level of prices for goods and services |
consumer | a person who purchases and uses goods or services |
interest | the price that is paid for the use of another's money |
time value of money | the increase of an amount of money due to earned interest or dividends |
principal | the original amount of money on deposit or borrowed |
future value | the amount your original deposit or borrowed money will be worth in the future based on earning or paying a specific interest rate over a specified period of time |
annuity | a series of equal regular deposits |
present value | the amount of money you would need to deposit now, or borrow, in order to have a desired amount in the future |