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22 Cards in this Set
- Front
- Back
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Assets |
Everything an individual or household owns with monetary value |
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Compounding interest |
Earning interest on interest |
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Depository institution |
Business that offers banking and finance services |
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Goal |
End result of something a person intends to acquire, achieve, do, reach, or accomplish |
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Interest |
The price of money |
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Interest rate |
% rate paid on $ invested or saved |
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Investing |
Purchase of assets with goal of increasing future income |
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Level of living |
Amount of $ needed to pay for necessities & comforts currently enjoyed |
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Liabilities |
Debts or what is owed to others |
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Liquidity |
How quickly and easily an asset can be converted into cash |
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Net income |
Take home pay after taxes |
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Net worth |
Amount of $ left when liabilities are subtracted from assets |
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Net worth statement |
Describes person or family's financial condition on a specified date |
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Opportunity cost |
The value of the next best alternative that must be forgone |
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Pay yourself first |
Saving strategy that states to set aside a predetermined portion of $ for saving each time a person is paid before using any of the $ for spending |
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Principal |
Original amount or $ saved or invested |
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Return |
The profit or income generated by savings and investing |
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Savings |
The portion of income not spent on consumption |
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Spending plan |
A paper or electronic document used to record both planned and actual income through expenditures over a period of time |
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Time value of money |
Money paid out or received in the future is not equivalent to money paid out or received today |
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Trade off |
Giving up one thing for another |
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Wealth |
Measurement of how much a person or household owns once all debts have been paid |
