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