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21 Cards in this Set
- Front
- Back
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Personal Financial Planning
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arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals.
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Goals
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the things you want to accomplish.
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Values
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beliefs and principles you consider important, correct, and desirable.
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Opportunity cost
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a trade-off, is what is given up when making one choice instead of another.
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Liquidity
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the ability to easily convert financial assets into cash without loss in value.
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Service
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a task that a person or a machine performs for you.
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Good
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a physical item that is produced and can e weighed or measured.
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Economics
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the study of the decisions that go into making, distributing, and using goods and services.
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Economy
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consists of the ways in which people make, distribute, and use their goods and services.
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Supply
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the amount of goods and services available for sale.
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Demand
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is the amount of goods and services available for sale.
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Demand
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is the amount of goods and services people are willing to buy.
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The Federal Reserve System
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or the Fed, is the central banking organization of the U.S.
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Inflation
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rise in level of prices for goods and services.
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Consumer
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a person who purchases and uses goods or services.
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Interest
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the price that is paid for the use of another's money.
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Time value of money
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the increase of an amount of money due to earned interest or dividends.
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Principal
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original amount of money on deposit.
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Future Value
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amount your original deposit will be worth in the future based on earning a specific interest rate over a specific period of time.
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Annuity
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a series of equal regular deposits.
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Present Value
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the amount of money you would need to deposit now in order to have a desired amount in the future.
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