Glossary
The management of an individual's financial decisions, including budgeting, saving, spending, and planning for the future.
Personal Finance
A cognitive bias where individuals mimic the actions, opinions, and decisions of a group, often overriding their own judgments and preferences.
Herd Mentality
A person who enjoys using their money to purchase products and experiences without much hesitation, and with less concern for saving.
Spender
This function allows both buyers and sellers to compare the value of different items easily.
Unit of Measure
Physical forms of money, such as banknotes and coins, that serve as a medium for exchanging goods and services.
Cash
An instrument that represents a standard and agreed upon value, used to purchase goods and services and to pay debts.
Medium of Exchange
A cognitive bias where the discomfort of something losing value, is perceived as greater than the pleasure derived from it gaining in value.
Loss Aversion
Someone who prioritizes accumulating money, often seeking security and stability through regular saving habits.
Saver
This characteristic allows an asset to maintain its value over time without depreciating significantly.
Store of Value
An electronic method of payment allowing the card owner to purchase goods and services with someone else's money.
Credit Card
A social science that studies the production, distribution, and consumption of goods and services to satisfy needs and wants, given the scarcity of resources.
Economics
A cognitive bias that occurs when people ascribe more value to things merely because they own them.
Endowment Effect
Someone that takes a moderate approach to finances, carefully managing their spending, saving, and investing, to maintain financial health and achieve long-term goals.
Balancer
This characteristic allows individuals to carry money with them and make transactions wherever they go.
Portability
A software-based system that securely stores users' payment information and passwords for numerous payment methods and websites, enabling transactions to be made electronically through a computer or smartphone.
Digital Wallet
The distinct patterns or tendencies in how individuals perceive, interact with, and manage their finances.
Money Personalities
A systematic deviation from rational thinking, leading to illogical judgments and decisions due to mental shortcuts and influences.
Cognative Bias
Someone that focuses on using their money to make more money, often by allocating funds into stocks, bonds, real estate, or other investment types.
Investor
This characteristic allows for money it to be used in all realms of the economy.
Acceptability
The act of creating, altering, or imitating objects, documents, or signatures, with the intent to deceive or defraud by passing off the forged item as genuine.
Forgery
A monetary system where a country's basic unit of currency equals a certain quantity of gold.
The Gold Standard
A cognitive bias where further investments are justified on the basis of previously incurred, unrecoverable costs.
Sunk Cost Fallacy
Someone that tends to shy away from dealing with financial matters, either due to lack of interest, understanding, or fear of confronting their financial reality.
Avoider
This characteristic ensures economic stability.
Limited Supply
A method for sending funds directly and quickly between bank accounts, often used for immediate and large transactions.
Wire Transfer