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personal money mgmt

TermDefinition
finance study of ways to manage money
budget a plan for managing money
income is the money that comes in
needs food, water, shelter clothing and transportation are ways to survive
wants is something that is desired but might not necessarily be vital to the persons life
expenses there are two kinds of expenses needs and wants food and housing are needs and clothes and movies are wants
spending when you payout money for something you need or want
credit when you buy something and promising to pay it later
interest when you rent a truck and you bring back the truck you pay a fee for using it
saving when you have extra money and you save it
investing using money to make money
loan a pile of money you promise to pay back
debt when you owe money to the bank
opportunity cost you choose you loose
capital is a pile of money that enables you to get something started
Created by: Jackson10