Financial Competence Terms
An ongoing process that can take you from where you are financially to where you wish to be
What is Financial Planning
Neccessities
What are needs
An objective you want to attain
What is a goal
Method of weighing the costs against the benefits of an action
What is a cost benefit analysis
Period of rising prices
What is inflation
The happy feeling you get when you have the ability to meet your essential needs without taking on more debt than you can repay
What is financial security
Things you would like to buy, but the things are not essential, like toys and candy
What are wants
Tools or people you use to reach your goals
What are resources
The choice you give up when you make one choice over another
wWt is trade-off
A period of slow growth
What is a recession
The possession of a body of financial knowledge , a set of basic skills, and the ability to apply your knowledge and skills to making informed and responsible financial choices.
What is Financial literacy
Tangible items that can be touched, used, and purchased, such as food and clothing
What is Goods
Overall structure of values and goals that guide your behavior and provide a sense of direction for your life
What is a value system
The dollar value of the option you give up
What is an opportunity cost
Statistical characteristics of a population
What is demographics
The process of organizing and using resources to achieve predetermined objectives.
What is managment
Intangible activities that another person usually performs for a fee, such as mowing a lawn
What is services
Moral principles or beliefs that direct a person's behavior; accepted standards or right and wrong
What are ethics
What is the first step in budgeting or the planning phase of management?
What is establishing goals
Beliefs, behaviors, and other characteristics common among members of a group or society
What is culture
Name of athlete that earned 400 million during his career and was 50 million in debt because he never learned about how to handle money in his younger years
What is Mike Tyson
Your beliefs about what is important and desirable
What are values
A value or goal that is given more importance than other values and goals
What is a priority
Common sense rule you should follow in managing your finances
What is don't spend more than you have
Application of science and research to human life and environments
What is technology