Chapter 1: Personal Financial Overview Flashcards Preview

Financial Planning > Chapter 1: Personal Financial Overview > Flashcards

Flashcards in Chapter 1: Personal Financial Overview Deck (28)
Loading flashcards...
1

Helps you reach important goals and financial security over your lifetime

Financial Planning

2

The ability to meet essential needs without taking on more debt than you can repay

Financial Security

3

Possessing and applying financial knowledge to make informed and responsible financial choices

Financial Literacy

4

Using your resources to achieve predetermined objectives

Management

5

Tangible items that can be purchased

Goods

6

Intangible activities that another person usually performs for a fee

Services

7

Things that are considered necessities

Needs

8

Things you would like but they are not essential

Wants

9

Your beliefs about what is important and desirable

Values

10

The overall structure of values and goals that guides your behavior

Value System

11

The moral principles or beliefs that direct a person’s behavior

Ethics

12

An objective you want to attain

Goal

13

A value or goal that is given more importance than other values and goals

Priority

14

An established measure of quality, value, or quantity

Standard

15

Tools you can use to reach goals

Resources

16

Weighing the costs against the benefits of an action, purchase or financial decision

Cost-benefit analysis

17

The change in total benefit of using one additional unit

Marginal benefit

18

The change in total cost of using one more unit

Marginal cost

19

The choice you give up when you make one choice over another

Trade-off

20

The value of the option you gave up

Opportunity cost

21

A process of choosing a course of action after evaluating information and the costs and benefits of alternative actions

Systematic decision-making

22

The state of the economy at a given time

Economic conditions

23

Period of slow or no economic growth

Recession

24

Period of rising prices

Inflation

25

The statistical characteristics of the population

Demographics

26

The beliefs, behaviors, and other characteristics common among members of a group or society

Culture

27

The application of science and research to human life and environment

Technology

28

Refers to worldwide markets, links and communications

Globalization