1.1
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 granting of a loan and the creation of debt; any form of deferred payment
Credit
anything that is owned by an individual, including money in the bank or investments
Asset
the cost of goods or services; money paid out
Expense
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Financial Literacy
: a person or organization that uses a product or service
Consumer
the additional cost a lender charges for borrowing their money
Interest
financial debts or obligations
Liability
the dollar value of a person’s assets is greater than the dollar value of their liabilities
Positive Net Worth
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
person or entity that charges borrowers interest rates above an established legal rate
Loan Shark
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 liabilities is larger than the dollar value of their assets
Negative Net Worth
the percentage of principal charged by the lender for use of its money
Interest Rate
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Net Worth