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Personal Finance

Quiz yourself by thinking what should be in each of the black spaces below before clicking on it to display the answer.
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Term
Definition
Compound Interest   Earning interest on interest.  
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Consumption   The purchase of goods and services.  
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Do It Yourself   When you complete a task yourself rather than paying someone else.  
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Emergency Savings   Cash set aside to cover the cost of unexpected events.  
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Interest   Price paid for using someone else's money.  
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Interest Rate   Percentage rate used to calculate interest.  
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Liquidity   How quickly and easily assets can be accessed and converted into cash.  
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Pay Yourself First   Saving for the future by putting money aside before paying regular monthly bills or using income for discretionary purchases.  
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Principal   The original amount of money saved or invested.  
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Saving   Accumulation of excess funds by intentionally spending less than you earn.  
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Savings   Portion of income not spent on consumption.  
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Time Value of Money   Money available at the present time (today) is worth more than the same amount if received in the future.  
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Created by: MarkEfird
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