1
anything that is owned by an individual, including money in the bank or investments
asset
a person or organization that uses a product or service
consumer
the granting of a loan and the creation of debt; any form of deferred payment
credit
the dollar value of a person’s liabilities is larger than the value of their assets
negative net worth
financial debts or obligations
liability
an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
paycheck to paycheck
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
net income
the percentage of principal charged by the lender for use of its money
interest rate
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
personal finance
the additional cost a lender charges for borrowing their money
interest
person or entity that charges borrowers interest rates above an established legal rate
loan shark
money owed to another person or company
debt
the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
financial literacy
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
net worth
the cost of goods or services; money paid out
expense
a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
financial plan
the dollar value of a person’s assets is greater than the dollar value of their liabilities
positive net worth