CH 1
Money owed to another person or company
What is debt
What is a budget?
Save a $500 emergency Fund
the first step
Adults devise and plan and stick to it. Children....
Do what feels good
Interest paid on interest that was previously earned
Compound interest
the additional cost a lender chages for borrowing their money
What is Interest
money received for work, as a gift, or through investments
What is Income
Pay off all debt & save 3-6 months
the 2nd and 3rd steps
Don't put all your ____ in one _____
Don't put all your EGGS in one BASKET
Credit that automatically renews whenever a payment is made to reduce the debt
Revolving Credit
the amount by which the value of a persons assets exceeds or falls behind the value of their liabilities
What is Net Worth
a record that summarizes allof the income and spending over a ertain time period
Cash-flow Statement
Invest 15%
The 4th step
SMART Goals
Specific -
Measurable -
Achievable -
Relevant -
Time Sensitive
a statistical number used to represent a consumers creditworthiness
Credit Score
anything that is owned by an individual, including money in the bank or investments
What is an Asset?
earnings based on a percentage of the sales made
Commission
Save for kids college & Pay off house
5th and 6th steps
What time does this class start?
10:45
an arrangement in which an individual will receive financial ptection or reimbursement of losses from an insurer
Insurance
financial debts or obligations
What are liabilities
Emergency Fund
Build wealth and give
the 7th step
Who was the first person that I killed in an example?
Jonathan
concept that an amount of money is worth more today than in the future due to earning potential
Time Value of Money