Financial planning
This is the process of setting goals, developing a plan to achieve them, and putting the plan into action
What is financial planning?
expenses that remain the same from period to period.
What are Fixed Expenses?
putting money aside for future use.
What is Saving?
An arrangement to receive cash, goods, or services now and pay for them in the future.
What is credit?
purchasing assets to increase wealth over time.
What is investing?
This is a statement of your financial position on a specific date.
What is a net worth?
Expenses that change from period to period.
What are variable expenses?
The ease with which an investment can be converted into cash.
What is liquidity?
The cost of using credit.
What is interest?
A share of ownership in a company.
What is stock?
There are your financial goals that you plan to achieve over a year or less.
What are short-term goals?
The difference between your income and expenses.
What is cash flow?
A savings account at a credit union.
What is a share account?
A credit card issued by a specific retailer.
What is a store card?
A debt instrument issued by a corporation or government.
What is a bond?
This is a tool used to estimate income and expenses over a specific period.
What is a budget?
A budget where income is greater than expenses are greater than income.
What is a surplus?
The annual rate of return on an investment.
What is yield?
A credit score that reflects your creditworthiness.
What is a FICO score?
A collection of investments.
What is a Portfolio?
This involves protecting your wealth and assets against loss.
What is risk management?
A budget where expenses are greater than income.
What is a deficit?
The concept that money available at present is worth more than the same amount in the future due to its potential earning capacity.
What is the time value of money?
The maximum amount you can charge on a credit card.
What is a credit limit?
Spreading investments among different types of assets to reduce risk.
What is diversification?