PF Flashcards
is the process of planning and managing personal financial activities
such as income generation, spending, saving, investing, and protection
Personal Finance
is your knowledge of facts, concepts, principles, and technological
tools that are fundamental to being smart about money.
Financial Literacy
, also known as Financial Intelligent (FI) or Financial IQ
(FIQ), refers to an individual’s ability to understand and manage their finances
effectively. It encompasses a range of skills and knowledge related to money
management, including budgeting, investing, saving, and understand financial risks
Financial Quotient (FQ)
typically includes several key steps, such as gathering
financial information, setting financial goals, analyzing the financial situation, developing
a financial plan, implementing the plan, monitoring the plan, and making adjustments as
needed.
Personal Financial Process
is a process of systematically matching career goals and individual
capabilities with opportunities for their fulfillment.
Career Planning
refers to the methods people take to protect themselves from unexpected
events, such as illnesses or accidents, and as a means to preserve wealth. Protection
includes life and health insurance and estate and retirement planning.
Protection
are compilations of personal financial data designed to
communicate information on money matters.
Financial Statements
describes an individual’s or family’s financial condition on a specified
date. It provides a current status report and includes information on what you own, what
Balance Sheet
is a document that outlines your income and
expenses over a specific period, typically monthly or yearly. It helps you understand your
financial position and manage your money more effectively.
Personal Finance Income Statement
is a financial document that provides a detailed summary of the
cash inflows and outflows of a business over a specific period. It Is one of the three main
financial statements, alongside the balance sheet and income statement. The CFS is
crucial for understanding a company liquidity and financial health.
Cash Flow Statement
are quantitative measurements for evaluating a person’s
financial situation and assisting them in making financially wise decisions.
Personal Financial Ratios
also known as the emergency fund ratio, the basic liquidity ratio
alerts you to whether you have adequate cash reserves to cover your monthly expenses in
the event of an emergency, expenses (urgent medical bills).
Basic Liquidity Ratio
is financial term that represents the total wealth of an individual, company, or
household. It is calculated by subtracting all liabilities (debts and obligations) from all
assets (things of value owned).
Net Worth
offers clarity as to whether you have sufficient assets in your portfolio to
service your debts.
Solvency Ratio
this indicates how much of your assets are funded by debt and helps
you understand if you have borrowed more than you should.
Debt to assets Ratio
is a process of an estimation of revenue and expenses over a specified future
period of time.
Budgeting
refers to the portion of your disposable income that you set aside rather than
spend on consumption. Essentially, it’s the money left over after you subtract your
expenses from your income.
Savings
is a valuable tool used by lenders, such as banks and financial institutions,
to asses the risk of lending to you. It is a three-digit number that represent your
creditworthiness, or how likely you are to repay borrowed money on time.
Credit Score
means a secure or unsecured loan given to individual for personal,
family, or household purposes, or for consumable items such as a Home, Car, Home
Appliances, Land, Home equity line of credit, etc.
Consumer loan
are convenient financial tool that allows you to borrow money up to a
certain limit to make purchases
Credit Cards
