1
Management of money (p.5)
Finance
Amounts of money you spend to pay bills or for other needs and wants (p.6)
Expenses
A charge on borrowed money (p.7)
Interest
Funds raised by companies through the sales of shares (p.8)
Stocks
How you manage your money and other things of financial value (p.5)
Personal finance
Things that you must have to sustain your livelihood (p.6)
Needs
Interest on accumulated unpaid interest (p.7)
Compound interest
Equal parts into which company stocks are divided (p.8)
Shares
A document that outlines your financial goals and how you plan to reach them (p.6)
Financial Plan
Things that you do not have to have, but would like to have, or own (p.6)
Wants
Something of value that you own (p.8)
Asset
A type of investment that helps a company or government agency raise funds for a return greater than the money invested (p.8)
Bond
A detailed summary of expected income and expenses during a given period (p.6)
Budget
Access to funds to cover a short-term cash need (p.6)
Liquidity
An agreement between two parties under which one party-usually an insurance company-guarantees the other that if an asset is lost or destroyed, the insurance company will pay for it (p.8)
Insurance
An investment that often includes a mix of stocks, bonds, or other securities purchased in shares (p.8)
Mutual Fund
What is earned or made available to you (p.6)
Income
Obtaining or providing money for a specific purpose (p.7)
Financing
Something you own that you expect to increase in value over time (p.8)
Stock
The period (usually later in life) during which you no longer work full-time at a job (p.8)
Retirement