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Vocab

TermDefinition
Interest A fee paid by a borrower to the leader for the use of borrowed money
Debt An obligation of repayment owed by one party (debtor /borrower) to a second party (creditor/lender)
Consumer A person or organization that buys/uses goods or services
Loan A debt evidenced by a "note," which specifies the principal amount, interest, rate and date of repayment (example:house mortgage
Credit The granting of a loan and the creation of a debt; any form of deferred payment
Economy A system by which goods and services are produced and distributed
Financial Literacy The knowledge and skillset necessary to be an informed consumer and manage finances effectively
Personal Finance All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.
Created by: djuwan98
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