personal finance

Financial Socialization: The process of learning how to manage money through parents, schools, media, and personal experiences.

Inflation: A general increase in prices over time, reducing purchasing power.
Unemployment Rates: The percentage of the labor force that is jobless and actively seeking employment.
Interest Rates: The cost of borrowing money, affecting loans and investments.

Present Value (PV): The current worth of a future sum of money given a specific rate of return.
Future Value (FV): The value of an investment at a specific date in the future.
Annuities:
- Present Value of Annuity (PVA): The current value of a series of future payments.
- Future Value of Annuity (FVA): The value of a series of payments at a future date.

Opportunity Cost: The loss of potential gain from other alternatives when one option is chosen.
Inflation: The rate at which the general level of prices for goods and services rises.
Interest Rates: The percentage charged on borrowed money or earned on savings.

Identity Theft: The fraudulent acquisition and use of a person's private identifying information.
Secure passwords, monitor credit reports, and avoid phishing scams.

Assets: Resources owned with economic value.
Liabilities: Debts or obligations owed.
Income & Expenses: Money earned vs. money spent.
Balance Sheet (Net Worth): A statement showing assets minus liabilities.
Cash Flow: The total amount of money being transferred in and out.
Budget: A financial plan for income and expenses.
Liquidity Ratio: Liquid assets divided by monthly expenses.
Surplus vs. Deficit: Surplus = excess funds; Deficit = spending exceeds income.
Fixed vs. Variable Expenses: Fixed = constant; Variable = changes over time.
Gross vs. Net Income: Gross = before deductions; Net = after deductions.
Monetary, Tangible, Investment Assets: Categories of assets.
Short vs. Long-Term Debts: Short-term = under a year; Long-term = over a year.

Career Planning: The process of setting career goals and developing a path to achieve them.
Spartan Resources: Career services, job fairs, networking events.
Key Terms:
- Cost of Living: The amount of money needed to cover expenses in a location.
- Benefits vs. Salary: Non-wage compensation vs. earnings.
- Negotiation: Discussing terms of employment or salary.
- Matching: Employer contributions to retirement plans.
- Insurance Factors: Considerations when selecting insurance policies.

Progressive Nature of Taxes: Higher income leads to higher tax rates.
Marginal Tax Rate: The percentage paid on the last dollar of income.
Tax Deferred: Taxes postponed until a later date.
Key Terms:
- Taxable Income: The amount of income subject to taxation.
- Tax Credits: Amounts deducted from total taxes owed.
- Deductions: Expenses that reduce taxable income.
- Capital Gains: Profits from the sale of assets.
- Filing Status: Tax category determining rate and deductions.
Tax Planning Steps:
- Determine income.
- Calculate deductions & credits.
- Use tax table to estimate refund/amount owed.

Financial Institutions: Banks, credit unions, and online banking services.
Payment Methods: Cash, checks, credit/debit cards, digital payments.
Selecting Institutions: Consider fees, accessibility, and interest rates.
Key Terms:
- Compound Interest: Interest on both principal and accumulated interest.
- APR vs. APY: Annual Percentage Rate vs. Annual Percentage Yield.
- After-Tax Savings Rate: Savings rate after accounting for taxes.
Regulatory Bodies & Deposit Insurance: Organizations ensuring financial security.
Reconciling a Checkbook: Matching personal records with bank statements.