Test 1 Flashcards
All the financial decisions an individual or family makes in order to earn, budgets, save, sapned, and gainmoney over time
Personal finance
A person or organization that uses a product or service
Consumer
Money owed to another person or company
Debt
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
paycheck-to-paycheck
The granting of a loan and the recreation of debt
Credit
The percentage of principal charged by the lender for the use of its money
Interest rate
Person or entity that charges borrowers interest rates above an established legal rate
Loan shark
The additional cost a lender charges for borrowing their money
Interest
Use a loan shark because
lenders couldn’t charge enough interest so they didn’t want to give not to get
credit cards born, debt easier for consumer, students loans
1958
a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
Financial plan
The amount by which the value of person’s assets exceeds or falls behind the value of their liabilities
Net worth
Anything that is owned by an individual, including money in the bank or investments
Asset
Financial debts or obligations
Liability
What a person earns after payroll taxes and other deductions are taken out
Net income
