Personal Financial Planning
arranging to spend, save, and invest money to live comfortably to have financial security and achieve Goals
Goals
things that you want to accomplish
Values
these are beliefs and principles you consider correct, important and desirable
Opportunity cost
the trade off; what is given up when making one choice instead of another
Liquidity
the ability to convert assets into cash without loss in value
Service
a task a person or machine performs for you
Good
a physical item that is produced that can be weighed or measured
Economics
the study of all decisions that go into making, distributing, and using goods and services
Supply
the amount of goods and services available for sale
Demand
the amount of goods and services people are willing to buy
Federal Reserve System
the central banking system of the United States
Inflation
the rise of the level of prices for goods and services
Consumer
the people who purchase and uses goods and services
Interest
the price you pay for the use of another's money
Time Value of Money
the increase in the amount of money due to earned interest or dividends
Principal
the original amount of money on deposit
Future Value
the amount your original deposit will be worth in the future based on earning a specific interest rate over a period of time
Annuity
A series of equal regular deposits
Present Value
the amount of money you would need to deposit now in order to have a desired amount in the future