personal finance final review

Personal Finance

The practice of managing and planning your individual or households financial resources

Personal finance planning

The process of managing an individual or households financial resources to achieve specific goals such as savings for retirement

Money

A current medium of exchange in the form of coins and breaknotes

Bank

A financial institution that offers services like accepting deposits

Net income

Refers to the amount of money an individual has left over a deductions and taxes are taken out of their gross income

Gross income

Gross minus all deductions are made

Income tax

A tax levied on the income or profits of individuals or entities

Social security

Any government system that provides monetary assistance to people with an inadequate or no money

Sales tax

A tax on sales or on the receipts from sales

Property tax

A charge by local government and paid by the owners of real estate within its jurisdiction

Job

a paid position of regular employment

Career

A occupation undertake for a significant period of a persons life and with opportunities for progress

Job Availability

The times and days when an employee is able and willing to work

compensation

Something awarded to someone for loss, injury, or suffering

Internship

The position of a student or trainee who works in an organization

Resume

A written document that summarizes a job seekers work experience, education, and skills

Employer

A person or organization that employs people

Job interview

A meeting where potential employer evaluates a candidates suitability for a job

Cover letter

A one page business letter that you submit when applying to a job

Technical School

A post secondary institution that provides hands on, practical training in a specific trade or profession

Fixed expenses

Regular unchanging monthly cost

Assets

Valuable items owned by you

Liabilities

Debts or obligations you owe

Net worth

Assets minus all financial liabilities

Cash surplus

Extra money for necessary expenses

Wealth

Total assets minus any debts

Sticker price

The official price of something such as a car, given by the company made it

Car buying

Services help purchase cars

Dealer add ons

Extras sold by dealership

lemon

defective car reading repairs

Depreciation

Value decreases over time

Appreciation

Value increases over time

Car title

Document proving car ownership

Car registration

Government record of ownership

Emergency fund

Savings for unexpected expenses

Business cycle

The pluctuations levels of economic activity in an economy over a period of time

Sunk cost

An investment already incurred that can’t be recovered

basic needs

The fundamental support people need for survival

Wants

Non essential desires but wants

Innovation

The action or process of innovating

Trade off

Exchange something of value, especially as part of a compromise

Opportunity cost

the loss of potential gain from other alternative is chosen

Economy

Process of system by which goods and services are produced

Product advertising

A type of paid promotion that attempts to convince customers to invest in a product

Company Advertising

Advertising that describe a company, rather than its products

Industry advertising

advertising that focuses on advertising materials, products, or services

Odd number pricing

A technique that involves setting prices in odd number like $0.99 or $1.97

Unit Pricing

The price for a single unit of measure of a product sold in more or less than the single unit

Loss Leader

A product sold at loss to attract customers

Custom

Money paid to the government when you take particular goods from one country to another

Social Pressures

Pressures to confirm to unhealthy financial habits

Comparison Shopping

When you look at different types retailers, both online and in physical stores, to find lowest possible price for a specific product

Supply and Demand

If a product has a high demand and low supply, the price will increase

Discretionary Income

Amount of money you have left after covering essential expenses like taxes

Leisure Time

Time when one is not working or occupied free time

Financial Plan

Document details a persons current financial circumstances

Budget

Plan for managing financial resources

Variable Expenses

Costs changing month to months