Personal Financial Literacy Vocab Unit 1.1

Financial Literacy

 The ability to read, analyze, manage, and communicate about personal financial conditions that affect material well being.

Personal Financial Planning

The ability to understand and effectively use financial skills, like budgeting, saving, investing, and managing debt, to make informed decisions for lifelong financial well-being.

Financial Plan

A document detailing a person's short- and long-term goals and the spending, saving, and investing strategies that can be followed.

Need

Expenditures that are essential for you to be able to live and work and are recurring.

Want

A non-essential expense for enjoyment or comfort, not survival.

Consumer

An individual or household using financial products/services (loans, banking, insurance) or buying goods/services for personal, family, or household use.

Good

Tangible items that satisfy human wants or needs, providing utility, are are physical, movable, storable, and transferable.

Service

An intangible act or helpful activity performed for another person or entity, delivering value by facilitating desired outcomes without transferring ownership of a physical good.

Values

The beliefs and principles that matter most to you and guide the way you make decisions, including financial ones.

Value System

The collection of your personal values, organized by importance, that shapes how you behave and what choices you make.

Ethics

A set of moral rules or standards that help you decide what is right and wrong when making decisions, including how you earn, spend, and manage money.

Priority

Something that is considered more important than other things and therefore receives more time, attention, or money.

Standard

A level of quality or expectation you set for yourself that helps guide your behavior, decisions, and goals.

Resource

Anything you can use to achieve a goal, such as time, money, skills, knowledge, or tools.

Goal

A specific result you want to achieve in the future, often requiring planning, effort, and responsible use of resources.