Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/32

Click to flip

32 Cards in this Set

  • Front
  • Back
personal financial planning
the process of managing your money to achieve personal economic satisfaction
opportunity cost
what a person gives up by making a choice
adult life cycle
the stages in the family situation and financial needs of an adult
values
ideas and principles that a person considers correct, desirable and important
economics
the study of how wealth is created and distributed
inflation
a rise in the general level of prices
time value of money
increases in an amount of money as a result of interest earned
future value
the amount to which current savings will increase based on a certain interest rate and a certain time period; also referred to as compounding
present value
the current value for a future amount based on a certain interest rate and a certain time period; also referred to as discounting
liquidity
the ability to readily convert financial resources into cash without a loss in value
gross domestic product (GDP)
total value of goods and services produced within a country's borders, including items produced with foreign resources
bankruptcy
a set of federal laws that allow you to either restructure your debts or remove certain debts
consumer spending
the demand for goods and servies by individuals and households
Dow Jones average, S&P 500 other stock market indexes
the relative value of stocks represented by the index
unemployment
the number of people without employment who are willing and able to work
trade balance
the difference between a country's exports and its imports
financial plan
a formalized report that summarizes your current financial situation, analyzes your financial needs and recommends future financial activities
housing starts
the number of new homes being built
consumer prices
the value of the dollar; changes in inflation
money supply
the dollars available for spending in our economy
financial planning process: step 1
determine current financial situation
financial planning process: step 2
develop your financial goals
financial planning process: step 3
identify alternative courses of action
financial planning process: step 4
evaluate alternatives
consider: life situation, personal values, economic factors
assess: risk, time value of money
financial planning process: step 5
create and implement your financial action plan
financial planning process: step 6
review and revise the financial plan
personal financial planning: part 1
planning your personal finances: obtaining and planning
personal financial planning: part 2
managing your personal finances: saving and borrowing
personal financial planning: part 3
making your purchasing decisions: spending
personal financial planning: part 4
insuring your resources: managing risk
personal financial planning: part 5
investing your financial resources: investing
personal financial planning: part 6
controlling your financial future: retirement and estate planning