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36 Cards in this Set
- Front
- Back
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Financial Literacy
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is knowledge of:
facts concepts principles technological tools ...that are fundamental to being smart about money |
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Personal Finance
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is the study resources important for achieving financial success and invovles:
spending saving protecting and investing |
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Financial Responsibility
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you are accountible for your future financial well being
and you strive to make wise personal financial decisions |
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Financial Success
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achievement of financial aspirations
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Financial Happiness
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satisfaction about money matters
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Economy
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system of managing resources of a country, state or community
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Economic Growth
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increasing production and consumption in the economy
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Expansion
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economy is increasing
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Peak
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economy has ended expansion and began contraction
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Contraction
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economy is falling
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Trough
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end of contraction and begin of expansion
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How long does the economic cycle?
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6-8 years
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GDP
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economic activity in a country
2% change is low 4% change is high |
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Pro-cyclical Indicator
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economic indicator that moves in the same direction as the economy
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Counter-cyclical Indicator
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economic indicator that moves opposite of the economy
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Index of Leading Economic Indicators
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a composite index reported monthly by the conference board that suggests the future direction of the US economy
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Consumer Confidence Index
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indicates the degree of optimism that consumers are expressing about the state of the economy
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Inflation
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steady rise in the general level of prices
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Consumer Price Index
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a broad measure of changes in the prices of all goods and services purchased for consumption by urban consumers
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Real Incomes
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income measured in constant prices relative to some base time period
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Federal Funds Rate
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rates banks charge each other set by the FED
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Opportunity Cost
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cost of decision measured by the value of the next best alternative
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Marginal Utility/Cost
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usefulness or cost of the next increment of something
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Marginal Tax Rate
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tax rate at which your next dollar is taxed
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Future Value
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the valuation of an asset projected to the end of a particular time period in the future
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Present Value
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the current value of an asset that will be received in the future
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Compounding
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when interest on an investment itself earns interest
ROAD TO WEALTH |
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Future Value of a Lump Sum
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valuation of an asset projected to the end of a particular time period in the future
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Rule of 72
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reveals number of years for principle to double
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Future Value of an Annuity
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valuation of a series of deposits projected to the end of a particular time period in the future
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Flexible Benefit Plans
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offer tax free money
offer a menu of benefits from which you may select (no cash equivalencies but tax free) |
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Health Care Plans
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fully or partially paid by the employer for heath care
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High Deductible Health Care Plans
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may cost less but have high out of pockets costs for heath care
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Health Savings Account
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provide tax sheltered savings for health expenses
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Pretax Dollars
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money income that has not been taxed by the government
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Flexible Spending Accounts
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can pay for child care and medical expenses with pretax dollars
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