| A | B |
|---|
| Personal Financial Planning | Spending, saving, & investing so you can live comfortably, have financial security, and achieve goals. |
| Goals | Things you want to accomplish. |
| Values | The beliefs & principles you consider important, correct, & desireable. |
| Opportunity Cost (trade-off) | What you give up when you make 1 choice instead of another. |
| Liquidity | The ability to easily convert your financial resources into cash W/O losing value. |
| Service | A task that a person or machine performs for you. |
| Good | A physical object that is produced and can be weighed or measured. |
| Economics | The study of decisions that go into making, distributing, & using goods & services. |
| Economy | Consists of the ways people make, distribute, & use their goods & services. |
| Federal Reserve System | The central banking organization of the USA. |
| Inflation | The rise in the level of prices for goods & services. |
| Consumer | A person who purchases & 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 as a result of interest or dividends earned. |
| Principal | The amount of money you deposit on which interest is paid. |
| Future Value | The amount your original deposit will be worth in the future based on earning a specific interest rate over a specific period of time. |
| Annuity | A series of equal regular deposits. |
| Present Value | The amount of $ you need now in order to attain a desired aount in the future. |
| Supply | The amount of goods & services available for sale. |
| Demand | The amount of goods & services people are willing to buy. |
