| A | B |
|---|
| Emergency Fund | a savings account set up specifically to be used to cover financial emergencies |
| Large Purchase | a purchase that requires a significant amount of money |
| First Foundation | Save $500 |
| Interest Rate | the percentage of principal charged by the lender for the use of its money |
| Accrued Interest | the amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued |
| Compound Growth | the average rate of growth for an investment over time; often expressed as an annual figure |
| Compound Interest | interest paid on interest previously earned |
| Principal | the initial amount of money invested or borrowed |
| Rate of Return | the measure of an investment’s profit or loss, usually expressed as a percentage of the initial investment |
| Inflation | the persistent rise in the cost of goods and services over time |
| Time Value of Money | concept that an amount of money is worth more today than in the future due to earning potential |
| Second Foundation | Get out and stay out of debt |
| Third Foundation | Pay cash for your car |
| Fourth Foundation | Pay cash for college |
| Fifth Foundation | Build weath and give generously |
