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100 Vocabulary
PF
| Term | Definition |
|---|---|
| personal finance | All the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time |
| consumer | A person or organization that uses a product or service |
| debt | Money owed to another person or company |
| paycheck to paycheck | An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings |
| credit | The granting of a loan and the creation of debt any form of deferred payment |
| interest rate | The percentage of principal charged by the lender for use of its money |
| loan shark | Person or entity that charges borrowers interest rates above an established legal rate |
| interest | The additional cost a lender charges for borrowing their money |
| financial plan | A plan of action that allows a persona to meet not only their immediate needs but also their long term goals |
| net worth | The amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities |
| asset | Anything that is owned by an individual, including money in the bank or investments |
| liability | Financial debts or obligations |
| positive net worth | The dollar value of a person’s assets is greater than the dollar value of their liabilities |
| negative net worth | The dollar value of a person’s liabilities is larger than the value of their assets |
| net income | What a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay |
| expense | The cost of goods or services; money paid out |
| financial literacy | The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively |