Consumer Education

Values

Your personal beliefs and standards used to judge right from wrong

Goals

The things you want to accomplish in life

Short term goals

You should achieve a short term goal within a year

Long term goals

You should achieve a long term goal over a period of years

Needs

Things you can’t live withoutW

Wants

Things you would like to have, but can live without

Opportunity cost

The value of your next best alternative whenever you make a choice

Specific

a precise objective to meet

Measurable

part of the goal that is expressed as to when it is metach

Achievable

characteristic of the goal that can be met - may be challenging

Relevant

goal relates to the overall success for the person trying to achieve the goal

Time-bound

The goal has to be accomplished by a specific date or time

Life values

principles that are important to you in life

Work values

principles that are important to you in work

Cultural values

important because of your ethnicity and heritage

Social values

related to how you interact with family and friends

Demographic values

important to you because of how and where you live

Evaluate the results

Decision 5 Study

Credit unions

non-profit member owned organizations

Federal Reserve System

Controlling agency of banks in the US that insures 250k

Checking accounts

directly deposit money freely

debit

withdrawl

deposit

credit

Pin 4 digits

Personal Identification Number

name/drawer

personal information of the account holder

date

the day which you are paying the check

payee

who is recieving the money

numeric amount

money given in numbers

written amount

money given in words

memo

reason for paying the check

signature

name of checking accounts owner on a signature card

routing number

identification number of the bank

account number

identification number of the personal checking account

check number

identification number of check order

pen

always use a ___

void

what do you write after making a mistake

fourteen and 75/100

14.75

23.45

twenty three and 45/100

checkbook register

a book used to keep a record of all deposits, debits, and transfers of a checking account

compound interest

interest calculated on both the initial principal and accumulated interest allowing money to grow faster

money market account

a savings account that typically offers a higher interest rate in exchange for larger minimum deposits

fixed expense

a recurring expense that stays the same each month

checking account

a banking account used for daily transactions, such as paying bills or making purchases

interest

the cost of borrowing money or the earnings from saving/investing money

credit union

a financial institution owned by its members that offers similar services to a bank, often with lower fees.

FDIC (Federal deposit insurance corporation)

A government agency that insures bank deposits up to a certain amountC

Certificate of Deposit (CD)

A savings account with a fixed interest rate and set withdrawal date

Inflation

the rise in the price of goods and services over time, reducing purchasing power

budget

a plan for managing income and expenses over a certain period

savings

money set aside for future use rather than spent immediately

principal

the original amount of money invested, borrowed, or deposited before interest

savings account

a bank account designed for storing money and earning interest over time

bank account

an arrangement with a bank to deposit, withdraw, or store money

emergency fund

money saved to cover unexpected expenses, like medical bills or car repairs

variable expense

an expense that changes from month to month (eg. electricity bills)

expense

money spent on goods and services

simple interest

interest calculated only on the original amount deposited or borrowed

return on investment (roi)

the profit or loss made from an investment relative to its cost

portfolio

a collection of investments owned by an individual or institution

dividend

a portion of a company’s earnings paid to shareholders

stock

a share of ownership in a company that allows investors to earn profits (or losses) based on a company’s performance

mutual fund

a pooled investment managed by professionals that allows investors investors to buy shares in multiple assets

asset

anything of value owned by an individual or business, such as cash, stocks, or property

capital loss

the loss incurred when selling an investment for less than its purchase price

stock exchange

a specific place where stocks and other financial instruments are traded

liquidity

the ease with which an asset can be converted into cash without losing value

stock market

a marketplace where stocks and other securities are bought and sold

exchange traded fund (etf)

an investment fund traded on stock exchanges, similar to stocks but holding multiple assets

bonds

a loan made to a government or company, which is paid back with interest

investment

the act of using money to make more money, often through stocks, bonds, or real estate

diversification

the strategy of spreading investments across different assets to reduce risk

capital gain

the profit made from selling an investment for more than its purchase price

risk

the chance of losing money on an investment

401(k)

a retirement savings plan sponsored by an employer, often with employer matching contributions

roth IRA

a type of retirement account where contributions are taxed, but withdrawls in retirement are tax-free

pension

a retirement plan that provides a fixed income after retirement, usually funded by an employer

broker

a person or company that buys and sells investments on behalf of clients

bear market

a period when stock prices are falling, and investor confidence is low

growth stock

a stock from a large, well-established, financially stable company

shareholder

a stockholder or someone who owns shares in a company

IRA

an account that allows tax-advantaged savings for retirement

annuity

a financial product that provides regular payments over time, often used for retirement income

hedge fund

a high risk investment fund that uses advance strategies to maximize returns

bull market

a period when stock prices are rising, and investor confidence is high

compound growth

growth that accelerates over time as earning are reinvested and generate additional earnings

securities

financial instruments, such as stocks and bonds, that represent ownership or debt

net worth

the total value of a person’s assets minus their debts

interest rate

the percentage of a loan that is charges as interest to the borrower

mortgage

a loan used to purchase a home, typically paid back in monthly installments

debt

money owed to another party, often with interest

loan

money borrowed that must be repaid with interest

credit score

a number representing a person’s creditworthiness based on their financial history

financial literacy

the ability to understand and effectively manage personal finances, including budgeting, investing and saving