Economics Vocab Flashcards
Liabilities
The money you owe
Postive net worth
assets are more than liablities
negative net worth
liabilities are larger than assets
financial plan
A game plan that evaluated current asserts and debts identifies te things you want or need and lays out a strategy to pay for them
Principal
The original amour you are investing
Compounding
The ability of an asset to generate earning that are then reinvested and generate their own earnings
Budget
An itemized listing of what you expect to make (income) and what you think you will spend (expenses)
CD
A saving certificate issue by a commercial bank entitling you to receive interest has a maturity date ( you cannot withdraw your money for a specific time period)
Skimming
Electronic method of capturing a persons personal information. Use a small device to scan credit card store information with magnetic strip
IRA
Personal retirement plans that give you a tax incentive for participating. Only requirement for opening one is that you must use earned income
Dumpster diving
Retrieving personal paperwork and mail from trash dumpsters.
401k
Having your employer deduct cash directly from your paycheck pretax. Some employers also contribute ash to this retirement plan called matching
Supply
The quantity of product or service that businesses are willing and able to provide at a particular price
Demand
The quantity of a product or service that consumers are willing and able to buy at a particular price.
Opportunity cost
Whenever limited resources are used to satisfy one want or needs that remain unsatisfied
