💰 Category 1: Personal Finance Basics
This term refers to managing your money, including saving, spending, and investing.
What is personal finance?
A plan for how you will spend and save your money.
What is a budget?
Anything of value that you own.
What is an asset?
Ownership in a company represented by shares.
What is stock?
The money coming into your account from income or other sources.
What is a cash inflow?
The amount of money you earn from work, investments, or other sources.
What is income?
A prediction or estimate of future financial outcomes.
What is a forecast?
Anything you owe to another person or company.
What is a liability?
A certificate representing a loan made by an investor to a corporation or government.
What is a bond?
How easily an asset can be turned into cash.
What is liquidity?
This is the cost of using someone else’s money, usually shown as a percentage rate.
What is interest?
Regular payments that stay the same each month, like rent or insurance.
What is a fixed expense?
The total amount of money owed that must be paid within one year.
What is a current liability?
Property such as land or buildings owned by an individual or family.
What is real estate?
An asset that can quickly be converted to cash without losing value.
What is a liquid asset?
The total value of what you own minus what you owe.
What is net worth?
The money that goes out of your account to pay bills or buy goods.
What is a cash outflow?
A liability that takes more than a year to pay off, such as a mortgage.
What is a long-term liability?
A collection of investments pooled together by many investors and managed professionally.
What is a mutual fund?
The value or benefit you give up when choosing one option over another.
What is opportunity cost?
A list that helps you track your financial assets and liabilities at a specific point in time.
What is a personal balance sheet?
Expenses that change from month to month, like food or entertainment.
What is a variable expense?
The difference between what you own (assets) and what you owe (liabilities).
What is equity?
The price an asset would sell for on the open market.
What is market value?
When you are unable to pay your debts and are legally declared insolvent.
What is bankruptcy?