Key Terms 1
A guess or rough calculation of the value of something
Estimate
An outline to reach a financial goal
Savings Plan
Things you cannot live without
Needs
A situation that could have good or bad outcomes
Risk
An extra amount of money given as a present or reward for good work
Bonus
A plan for how to use available money during a specific length of time
Money someone earns for their work
Income
Things you can live without but are nice to have
Wants
A regular payment usually paid bi-weekly or monthly
Salary
Stock market
Financial goal
Someone who gives another person money to make a purchase and in exchange expects to be paid back later with interest
Lender
Putting money into assets with the hope of making more money from it in the future. It involves some risk; meaning while the amount of money put away might increase, it could also decrease.
Investing
Money paid per hour worked during a time period, typically paid on a daily, weekly, or bi-weekly basis
Wage
A share of ownership in a company. When you buy this, you own a small piece of the company
Stock
Giving in to your immediate wants and desires
Short-Term Gratification
Someone who purchases something with someone else's money and agrees to pay the person back later
Borrower
Putting money aside for future use rather than spending it right away
Saving
Additional money earned for providing a service
Tips
A group of investments, such as stocks, bonds, or cash
Portfolio
Resisting temptation of immediate wants and desires in hopes of gaining something more or better in the future
Long-term gratification
Money someone borrows so that they can purchase something today while agreeing to repay the lender at a future date and with interest
Credit
The additional amount that a borrower pays for using someone else's money, and the income earned by the lender for lending their money
Interest
A percentage earned for the sale of a product, service, or good
Commission
A collection of assets that provides diversification. For example, the S&P 500 tracks the 500 largest U.S. companies
IF CORRECT - Double the Points
Exchange-traded fund
ETF