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Personal Finance
Vocabulary
Question | Answer |
---|---|
The amount of money you earn. This can come from a job or investments. It is limited. | INCOME |
Money earned per hour in exchange for your physical or mental labor | WAGE |
Fixed amount of money earned per day, month, or year in exchange for your physical or mental labor | SALARY |
Giving money in order to receive a good or a service. | SPENDING |
Things you must have to survive | NEEDS |
Things you would like to have to raise your standard of living. | WANTS |
A spending plan | BUDGET |
Long term plan on how you are going to use your money (kind of like a long term budget) | PERSONAL MONEY MANAGEMENT PLAN |
Fancy word for putting money somewhere in your budget | ALLOCATE |
Money put away to be used later. | SAVINGS |
Borrowing money and promising to pay it back later with interest added. Can be a loan or credit cards. | CREDIT |
Fee paid for the use of borrowed money. | INTEREST |
Allowing others to use your money in return for giving you interest. | INVESTING |
Someone who takes on personal risk to start a business | ENTREPRENEUR |
There is a yearly rate that determines how much interest you will pay for loans (called the interest rate). | INTEREST RATE |