Personal Finance

Personal Financial Planning

Arranging to spend, save, invest money to live comfortably.

Goals

Things that you want to accomplish.

Values

Beliefs and principles that you consider important, correct, and desirable.

Opportunity Cost

When you give up something and make a choice for something else.

Liquidity

The ability to convert an asset into cash without loss in value.

Service

A task a person or machine performs for you.

Good

A physical item that is produced that can be weighed or measured.

Economics

The study of the decisions that go into making, distributing, and using goods and services.

Economy

Consists of the ways people make, distribute, and use their goods and services.

Supply

The amount of goods and services available for sale.

Demand

The amount of goods and services that people are willing to buy.

Federal Reserve System

The central banking organization of the USA.

Inflation

The rise in prices for goods and services.

Consumer

The person who purchases and uses goods or services.

Interest

The price that is paid for the use of another's money.

Time Value of Money

The increase in an amount of money due to earned interest or dividends.

Principal

The original amount of money on deposit.

Future Values

The amount of original deposit will be worth in the future based on the interest rate over a specific period of time.

Annuity

A series of equal regular deposits.

Present Value

The amount of money you would need to deposit now to have a desired amount in the future.