Personal Finance Basics And The Time Value Of Money

Front 1

Personal Financial Planning

Back 1

The process of managing your money to achieve personal economic satisfaction

Front 2

1st Step of Financial Planning Process

Back 2

Determine current financial situation

Front 3

2nd Step of Financial Planning Process

Back 3

Develop financial goals

Front 4

3rd Step of Financial Planning Process

Back 4

Identify alternative courses of action

Front 5

4th Step of Financial Planning Process

Back 5

Evaluate alternatives

Front 6

5th Step of Financial Planning Process

Back 6

Create and implement your financial action plan

Front 7

6th Step of Financial Planning Process

Back 7

Review and revise the financial plan

Front 8

4 Courses of Action

Back 8

1) Continue same course

2) Expand current situation

3) Change current situation

4) Take new course

Front 9

Opportunity Cost

Back 9

What a person gives up by making a choice

Front 10

5 Risks

Back 10

1) Inflation

2) Interest Rate

3) Income

4) Personal

5) Liquidity

Front 11

Adult Life Cycle

Back 11

Th stages in the family situation and financial needs of an adult

Front 12

Values

Back 12

Ideas and principles that a person considers correct, desirable, and important

Front 13

Economics

Back 13

The study of how wealth is created and distribution

Front 14

Consumer Prices

Back 14

The buying power of a dollar; changes in inflation

Front 15

Consumer Spending

Back 15

The demand for goods and services by individuals and households

Front 16

Interest Rates

Back 16

The cost of money

Front 17

Money Supply

Back 17

The dollars available for spending in our economy

Front 18

Unemployment

Back 18

The number of people without employment who are able and willing to work

Front 19

Housing Starts

Back 19

The number of new homes being built

Front 20

Gross Domestic Product

Back 20

Total value of goods and services produced within a country's borders

Front 21

Trade Balance

Back 21

The difference between a country's exports and its imports

Front 22

Timing of financial goals

Back 22

Short-term, intermediate, long-term

Front 23

Types of goals

Back 23

Consumable-product, durable-product, intangible-purchase

Front 24

SMART goal setting

Back 24

Specific

Measurable

Action-oriented

Realistic

Time-based

Front 25

Time value of Money

Back 25

Increases in an amount of money as a result of interest earned

Front 26

Future Value

Back 26

The amount to which current savings will increase based on a certain interest rate and a certain time period (compounding)

Front 27

Present value

Back 27

The current value for a future amount based on a certain interest rate and a certain time period

Front 28

Liquidity

Back 28

The ability to readily convert financial resources into cash without loss in value