PLANNING
Desired results from one's efforts to achieve personal economic and financial satisfaction.
FINANCIAL GOAL
Deposit account at a bank that pays interest but cannot be withdrawn by check writing.
SAVINGS ACCOUNT
Desires that can be satisfied by consuming a good or service.
WANTS
A check issued to an employee in payment of salary or wages.
PAYCHECK
Collection of securities such as stocks, bonds, and mutual funds that an individual investor owns.
PORTFOLIO
The value of possible alternatives that a person gives up when making one choice instead of another; also known as trade-off.
OPPORTUNITY COST
Process of seeking information about products/services to find the best quality or utility at the best price.
COMPARISON SHOPPING
A cost that does not change from period to period or that changes only very slightly.
FIXED COST
Positive difference between total revenue and total expenses of a business or investment.
PROFIT
Measures of the likelihood of loss or uncertainty of an investment's rate of return; and a satisfying result or benefit from an event/action.
RISK AND REWARD
Financial tool, also called a budget, which is used to manage income and expenses.
SPENDING PLAN
Money set aside for unexpected expenses or for living costs in case of job loss.
EMERGENCY FUND
An announcement usually paid - of the benefits of a product or service that is intended to encourage its purchase.
ADVERTISEMENT
Measure of a person's financial condition at any given time; equal to what they own minus what they owe.
NET WORTH
STOCK MARKET
Method of selecting a course of action after gathering and evaluating data and considering the costs and benefits of alternatives and consequences.
SYSTEMATIC DECISION-MAKING
Interest that is credited on both principal and previously credited interest.
COMPOUND INTEREST
Card that may be used repeatedly to borrow money or buy goods and services.
CREDIT CARD
Government fees on business and individual income, activities, or products.
TAXES
A single unit of ownership in a corporation or mutual fund.
An overall rise in the price of goods and services; the opposite of the less common deflation.
INFLATION
Commitment to invest in your financial future before paying for expenses such as bills, vacations, a new car, or movies.
"PAY YOURSELF FIRST"
Obligation or liability to pay or to render something to someone else.
DEBT
Short-term loans granted regardless of credit history, often very short periods and at high interest rates.
EASY ACCESS CREDIT
Investment that offers the investor the benefits of portfolio diversification and professional management.
MUTUAL FUND