Studied by 7 people
Financial Literacy
Understanding financial principles like budgeting, saving, investing, and debt management for informed money decisions.
Financial Decision-Making Process
Involves identifying goals, gathering information, analyzing options, making choices, implementing decisions, and reviewing regularly.
Income
Money received regularly from work, investments, or other sources.
Expenditure
Money spent on goods, services, and obligations.
Budgeting
Allocating resources effectively, planning for expenses, and ensuring financial goals are met.
Savings Accounts
Bank accounts earning interest on deposited funds.
Compound Interest
Interest calculated on the principal and accumulated interest.
Credit Scores
Numerical representations of creditworthiness.
Risk Management
Identifying and managing financial risks like market, inflation, and personal risks.
Online Banking
Provides convenient access to financial services through technology.
Earned Income
Money received from employment or self-employment.
Passive Income
Earnings derived from investments, rental properties, or other sources where active involvement is minimal.
Fixed Expenses
Regular, recurring costs such as rent, mortgage payments, and insurance premiums.
Variable Expenses
Costs that vary with usage or consumption, like utility bills and groceries.
Discretionary Expenses
Non-essential spending on items like entertainment and dining out
Loans
Borrowed sums of money that must be repaid with interest.
Mortgages
Long-term loans specifically for purchasing property.
Credit Cards
Short-term borrowing tools allowing purchases on credit.
Simple Interest
Calculated on the principal amount only.
Inflation Risk
The risk that inflation will erode purchasing power over time.
Personal Risk
Risks related to individual circumstances, such as job loss or health issues.
Market Risk
The potential for investment losses due to market fluctuations.
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