Chapter 1
What you give up by making a choice.
Opportunity cost.
Job vs Career
Surplus
The amount of money you have left.
Gross income after certain reductions have been made.
Adjusted gross income (AGI)
CREDIT BUREAUS
Experian
TransUnion
Equifax
The process of managing your money to achieve personal economic satisfaction.
Personal Financial Planning.
Deficit
A negative balance.
An amount subtracted from adjusted gross income (AGI) to arrive at taxable income.
Tax deduction
The total dollar amount you pay to use credit.
Finance Charge
Economics
The study of how wealth is created and distributed
Networking
The process of making and using contacts to obtain and update career information.
MONEY MANAGEMENT
The day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security.
Compounding refers to
Interest that is earned on previously earned interest.
A legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts.
BANKRUPTCY
Inflation
Inflation is a rise in the general level of prices.
Resume
A quick summary of a person's relevant education and experiences.
Inability to pay debts when they are due.
Insolvency.
Overdraft protection
An automatic loan made to checking customers to cover the amount of checks written in excess of the available balance.
Types of Bankruptcy
Rule of 72.
The number of years it will take for your investment to double.
Aptitudes
Natural abilities that people possess (numbers, problem solving skills).
Specific plan for spending income.
Budget.
A legal agreement that provides for the management and control of assets by one party for the benefit of another.
Trust
A written guarantee from the manufacturer or distributor that specifies the conditions under which the product can be returned, replaced, or repaired.
A warranty