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Personal Finance Ch
Question | Answer |
---|---|
Consumer | A person or organization that uses a product or service |
Credit | The granting of a loan and the creation of deb, any form of deferred payment |
Debt | and obligation of replacement by 1 party ( the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the orginial loan amount plus interest |
Economy | A system by which goods and services are produced and distributed |
Financial Litetacy | The knowledge and skills necessary to be an informed consumer and manage finances effectively |
Intrests | A fee paid by a borrower to the lender for the use of borrowed money; typically interests is calculated as a percentages of the principal (original loan amounts) |
Loan | A debt evidenced by a "note", which specifies the principal amount, interests rate and date of repayment |
Personal Finance | All the decisions and activities of an individual or family regarding this money, including spending, saving, budgeting, etc. |
why should students learn about personal finance | to manage your money, Eliminates future financial mistakes and promotes financial benefits |
what are the key elements of financial planning | - Right out a detailed plan for accomplishing goals - Replace money myths with money truths - Set Money Goals - Execute your plan |
how are Americans being outsmarted by banks and other lenders | credit is marketed to the U.S. |
how does one have success with their personal finance |