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Vocab Chapter 1


Liquidity ability to easily convert financial resources into cash w/o loss of value
Personal Financial Planning the way you spend, save, & invest your $ to have the kind of life you want as well as financial security
Principal amount of $ deposited & on which interest is paid
Economics study of the decisions that go into making, distributing, & using goods & services
Values Beliefs & principles that a person considers iportant, correct, & desirable
Future Value amt. that your original deposit will be worth in the future based on a specific interest rate over a specific period of time
Present Value amt. of $ you need to deposit now to attain a desired amt. in the future
Time Value of $ increase in an amt. of $ as a result of interest or dividends earned
Demand amt. of goods & services ppl are willing to buy
Economy the ways in which people make, distribute, & use their goods & services
Long-term Goals financial plans that are more than 5yrs off
Services Exc: cake decorating, tailoring, accounting
Supply amt. of goods & services available
Intermediate Goals saving for a mission's trip 2 summers away
Created by: Butterfly92