Flashcards
Introduction to Personal Finance Vocabulary
Cards in this deck (9)
- 1ConsumersA person or organization that uses a product or service.
- 2CreditThe granting of a loan and the creation of debt; any form of deferred payment.
Ex: Credit Cards, Loans, House Loans, Car loans, etc... - 3DebtAn obligation of repayment owned by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original amount plus interest.
- 4EconomyA system by which goods and services are produced and distributed.
- 5Financial Literacythe knowledge and skillset necessary to be an informed consumer and manage finances effectively.
Ex: Saving, budgeting, and dealing with taxes. - 6InterestIs the fee paid by the borrower to the lender for the use of borrowed money.
(Is the cost of using someone else's money.) - 7LoanA debt evidenced by a note, which specifies the principal amount, interest rate, and date of repayment.
- 8Personal Financeall the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc...
- 9Personal finance is 80% __________ and 20% ___________Behavior
Head knowledge