PF 1
All the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
What is Personal Finance?
A plan for how you will spend and save your money.
What is a budget?
The reason to track your spending
What is to see where your money goes and make sure you stay within your budget.
A person or organization that uses a product or service
What is a Consumer?
The ability to borrow money and pay it back later.
What is Credit?
Money set aside to pay for unexpected expenses.
What is an emergency fund?
the dollar value of a person’s liabilities is larger than the value of their assets
What is Negative Net Worth?
Money owed to another person or company
What is Debt?
financial debts or obligations
What is a Liability?
The percentage of principal charged by the lender for use of its money
What is an Interest Rate?
What a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
What is Net Income?
Anything that is owned by an individual, including money in the bank or investments
What is an Asset?
Something necessary for basic living, such as food, housing, or clothing.
What is a need?
A person or entity that charges borrowers interest rates above an established legal rate
What is a Loan Shark?
A plan of action that allows a person to meet not only their immediate needs but also their long-term goals
What is a Financial Plan?
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
What is Paycheck to Paycheck?
The cost of goods or services; money paid out
What is an Expense?
The granting of a loan and the creation of debt; any form of deferred payment
What is Credit?
Something you would like to have but do not necessarily need.
What is a want?
The dollar value of a person’s assets is greater than the dollar value of their liabilities
What is Positive Net Worth?
A specific money-related target you want to reach.
What is a financial goal?
The reason it's important to start investing early
What is your money has more time to grow through growth?
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
What is Net Worth?
The additional cost a lender charges for borrowing their money
What is Interest?
Money taken out of your paycheck for things such as taxes, insurance, or retirement savings.
What is a paycheck deduction?