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personal financial planning
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The way people spend, save, and invest their money so that they can have the kind of life they want as well as financial security.
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terms list
personal financial planning
The way people spend, save, and invest their money so that they can have the kind of life they want as well as financial security.
goals
The things a person wants to accomplish, such as getting a college education, buying a car, or starting a business.
values
The beliefs and principles a person considers important, correct, and desirable.
opportunity costs
The possibilities that a person gives up when he or she makes one choice instead of another; also known as a trade-off.
liquidity
The ability to easily convert financial resources into cash without a loss in value.
service
A task that a person or a machine performs for someone else.
good
A physical object that is produced and can be wieghed or measured.
economics
The study of the decisions that go into making, distributing, and using goods and services.
economy
The ways in which people make, distribute, and use good and services.
supply
The amount of goods and services available for sale.
demand
The amount of goods and services that people are willing to buy.
Federal Reserve System
The central banking organization of the United States; also known as the Fed.
inflation
The general rise in the level of prices for goods and services over time.
consumer
A person who puchases and uses good or services.
interest
The price that is paid for the use of another's money.
time value of money
The increase in an amount of money as a result of interest or dividends earned.
principal
The amount of money that is deposited in a savings account and on which interest is paid.
future value
The amount an original deposit will be worth in the future, based on its earning a specific interest rate over a specific period of time.
present value
The amount of money a person would need to deposit now in order ot attain a desired amount in the future.
annuity
A series of equal regular deposits.
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