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Opportunity cost
A(n) ________, sometimes called a tradeoff, is what you give up when you make one choice instead of another.
Deficit
A(n) ________ occurs when more money is spent than is earned or received.
Surplus
A(n) ________ is extra money that can be spent or saved, depending on a persons goals and values.
Personal finance
________ refers to all the things in your life that involve money.
Identify possible courses of action
________: It is important to consider your options before making a decision.
Money management
________ is a method of planning to get the most from ones money.
Interest Rate
________: Risk Interest rates rise and fall, which may affect the cost of borrowing or the profits you earn when you save or invest.
financial decisions
When making ________, the Internet is a good place to get information on social and economic conditions.
Money management
________ is necessary for consumers, businesses, and governments.
Determine your financial situation
Once you have determined your financial situation, you will be able to start planning
Develop your financial goals
To develop clear financial goals, you will need to think about your attitude toward money
Identify possible courses of action
It is important to consider your options before making a decision
Evaluate your alternatives
When you evaluate your alternatives, use the sources of financial information that are available
Implement a financial plan of action
A plan of action is a list of ways to achieve your financial goals
Review and revise your plan
You should reevaluate and revise it every year
Inflation Risk
Inflation is a general increase in the cost of goods and services
Interest Rate
Risk Interest rates rise and fall, which may affect the cost of borrowing or the profits you earn when you save or invest
Income Risk
Your income may rise or fall
Personal Risk
Some choices increase risk
Liquidity Risk
You may have to withdraw your savings or investments
Note 
Flashcard (104)