simple vocab
A person or organization that uses a product or service
what is a Consumer
a written cash flow plan
budget
A public sale in which property or items of merchandise are sold to the highest bidder
auction
The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)
branding
Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually
compound interest
The granting of a loan and the creation of debt; any form of deferred payment
credit
A summary that shows total income and spending for a given time period
cash flow statement
Retail store where people sell items and the owner of the shop gets a percentage of the sale
Consignment shop
Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.
Brand recognition/awareness
Five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the First Foundation
Emergency Fund
An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest
debt
A copy of each check you write
Carbon Check
The process of quantifying costs and benefits of a decision
cost-benefit analysis
Feeling regret or concern after making a large purchase
Buyer's remorse
Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing)
interest rate
A system by which goods and services are produced and distributed
economy
Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses
Envelope System
Type of yard sale with more items, usually the entire contents of a household
estate sale
Latin term for "buyer beware"
caveat emptor
The five steps to financial success
Five Foundations
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
financial literacy
Occurs when money is withdrawn from a bank account and the available balance goes below zero
overdraft
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
Foreclosure
To buy an item with credit; paying over time
Financing
Saving money over time for a large purchase
sinking fund