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