arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals.
100
What is a need?
something you must have to survive.
100
What is a want?
something you desire or would like to have
100
What are the opportunity costs associated with financial decisions?
you must make choices on how you spend your money.
Ex. you see a pair of 129$ sneakers at the mall, you have to decide weather to save that money or buy the shoes.
100
What is principle?
.
original amount of money on deposit
200
What is Values?
the beliefs and principles you consider important, correct, and desirable.
200
What are three time frame goals?
short term, long term, intermediate.
200
What is a consumer?
you
200
you just deposited 1,000$ into savings. you have 3 percent intrest and you earned 30$ in the first year in intrest. how much money do you have in two years?
(principal+ previously earned intrest) X annual intrest rate.
.
1,060.90$ after two years
200
What is Future value?
the amount your original deposit will be worth in the future based on earning a specific intrest rate over a specific period of time.
300
What is liquidity?
ability to easily convert financial assets into cash without loss in value.
300
Why is it important to distenguish between your needs and wants?
.
So you dont spend all your money on things you want and nothing you need
300
What is the first thing you do when you get paid?
pay yourself
300
Why should you know the future value of a deposit when making financial plans?
because you are going to know how much money you have after making your investments over time.
300
What is present value?
the amount of money you need to deposut now in order to have a desired amount in the future.
400
What is inflation?
rise in the prices of goods and services.
400
What is the 3 out of the 5 good financial habbits?
1. Save money every time you get paid.
2. spend less money than you make.
3. work out a budget and stick to it.
4. pay bills and taxes on time.
5. balance your checkbook every month.
How can you manage your time more efficiently to work and play?
By making a planner and calculating the time
400
What is annuity?
a series of equal regular deposits.
500
What is federal reserve system?
the central banking organization of the United States.
500
What are the 3 of the 6 steps used to create a financial plan?
1. determine your current financial situation.
2.develop your financial goals.
3. identify your options.
4.evaluate your alternatives.
5. create and use your financial plan of action.
6. review and revise your plan.
500
What is the GDP ( Gross Demestic Product ) of india?
3.02 trillion
500
What are the eight stratigies you can apply to achieve your financial goals?
1. obtain
2. Plan
3. spend wisely
4. save
5. borrow wisely
6. invest
7. manage risk
8. plan for retirement
500
What is time value of money?
increase of an amount of money due to earned intrests or dividends.