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WHS Finance Unit 1
Personal Finance
Term | Definition |
---|---|
Financial goals | Specific objectives that are accomplished through financial planning |
Financial planning | Managing money continuously through life in order to reach your financial goals |
Financial well‐being | Managing money in ways that build a sense of understanding, competence, and control |
Well‐being | Feeling good about one’s life |
Needs | Goods or services that are required for survival |
Opportunity cost | The value of the next best alternative that must be forgone as a result of a decision |
Trade‐off | Giving up one thing for another |
Value | A fundamental belief or practice about what is desirable, worthwhile, and important to an individual |
Want | The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival |
Goal | Something a person intends to acquire, achieve, or accomplish in the future |
Long‐term goals | A goal that will be attained in more than one year |
Short‐term goals | A goal that will be attained in less than one year |