Time Value of Money
The word that proceeds the period of time that tells you how often interest is calculated
What is compounded?
The value of the next best alternative foregone.
What is opportunity cost?
Car repair bill is classified as this type of expense
What is non-monthly or occasional and variable?
Deeply held beliefs that help guide decision making
What are core values?
Income earned before taxes and deductions.
What is gross income?
The future value of $1,000 compounded annually at 5% for three years.
What is $1,157.63?
Job satisfaction is an example of what type of benefit, financial or non-financial?
What is non-financial?
An example of a fixed monthly expense
What is rent, car payment, insurance, etc.?
Appreciation for what one has
What is gratitude?
SMART acronym meaning
Specific
Measurable
Action-oriented
Realistic
Time-based
The interest rate used to calculate present value from future value
What is the I/Y key or discount rate?
Higher ______ generally leads to higher lifetime earnings.
What is education?
50/30/20 budget breakdown
What are 50% needs, 30% wants, and 20% savings/debt repayment?
A strength that could be useful in managing personal finances.
What is Discipline, Responsibility, or Analytical?
Interest earned on both principal and accumulated interest
What is compound interest?
The key that needs to be changed to a negative number for TVM calculations
What is the present value?
Factors to consider when evaluating a job offer besides salary.
What are benefits, work-life balance, location, and growth opportunities.
Tool that helps identify overspending
What is a budget?
Identifies your top five strengths.
What is the StrengthsFinder assessment?
Impact inflation has on purchasing power over time
What is it reduces the value of money over time?
The present value of $10,000 received in five years with 6% interest compounded annually.
What is $7,472.58?
Alignment of long-term goals with saving, investing, budgeting, and income potential.
What is career planning?
Suggested amount is 3 - 6 months of essential expenses.
What is an emergency fund?
FOMO stands for
What is Fear of Missing Out?
Create a SMART financial goal related to saving for a vacation.
Save $(total amt) for a vacation in X months by setting aside Z amount per month in this account.