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16 Cards in this Set
- Front
- Back
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Study of how wealth is created and distributed |
Economics |
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Rise in the general level of prices |
Inflation |
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report that summarizes current financial needs and recommends future financial activities |
Financial Plan |
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What a person gives up by making a choice |
Opportunity Cost |
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Statistical estimate of the change in prices of goods and services bought for consumptions |
Consumer Price Index |
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Increase in an amount of the money as a result of interest earned |
Time value of money |
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S M A R T |
Specific Measurable Action Oriented Realistic Time Frame |
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Which goal can be achieved within the next year or so
Ex. saving for vacation, paying off small debts |
Short Term |
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Which goal is more than five years off
Ex. Retirement |
Long Term |
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Inflation, Interest Rate, Income, Personal, Liquidity are types of what? |
Risks |
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How can it be a risk: Inflation |
cause change in buying power |
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How can it be a risk: Interest Rate |
can affect your costs and benefits |
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How can it be a risk: Income |
loss of job |
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How can it be a risk: Personal |
tangible/intangible factors create a less desirable situation |
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How can it be a risk: Liquidity Risk |
Savings and investments potential for higher earnings are difficult to convert to cash or sell |
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amt. in Annual TIme savings x Interest x period = ? rate |
interest |
