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5.01

Choose to Save

TermDefinition
compound interest earning interest on interest
consumption purchasing goods/services
do it yourself self-reliant for task completion
emergency savings cash for unexpected events
interest price paid for using someone else's $
interest rate % rate to calculate interest
liquidity how quick and easy assets can be converted to cash
pay yourself first saving money before paying expenses
principal original $ amount invested
saving spending less than the earnings to set aside excess funds
savings part of income not spent on consumption
time value of money today's $ is worth more than if received in the future
Created by: Tate.cord70
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