Personal Finance

1/14/25

1. Personal Financial Planning- Arranging to spend, save, invest money to live comfortably

2. Goals- Things that you want to accomplish

3. Values- These are beliefs and principles that you consider important, correct, and desirable 

4. Opportunity cost- it is when you give up something and make a choice for something else

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

6. Service- a task a person or machine performs for you 

7. Good- a physical item that is produced that can be weighed or measured

8. Economics- the study of the decisions that go into making, distributing, and using goods and services

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

10. Supply- The amount of goods and services available for sale

11. Demand- the amount of goods and services that people are willing to buy

12. Federal Reserve System- the central banking organization of the USA

13. Inflation- the rise in prices for goods and services

14. Consumer- the person who purchases and uses goods or services

15. Interest- the price that is paid for the use of another's money 

16. Time Value of Money- The increase in an amount of money due to earned interest or dividends 

17. Principle- the original amount of money on deposit

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

19. Annuity- The 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