First Semester Flashcards
(32 cards)
What is the management of money and financial decisions for a person or family including budgeting,investments, retirement planning?
Personal finance
What is an expense that will be the same total amount regardless of changes in the amount of sales, production, or some other activity?
Fixed expenses
What is a cost that can change depending on your use of the product or services?
Variable expense
What is an itemized summary of likely income and expenses for a set period of time?
Budget
What are reasons to develop a budget?
Eye on the prize, ensures your don’t spend money you don’t have, happy retirement, prepare for emergencies, allows you to see your bad spending habits
Where do you start when making a budget?
Look at how much you make and track daily expenses
What is the process of setting goals and developing ways to achieve goals to make dreams become reality and provide financial security for the future?
Financial planning
What is an objective that is expressed in or based upon money?
Financial target
What three time frames is financial target split into?
Short, medium, long term goals
What are the number of years for each type of goal?
Short-less than 1 year
Medium- 1-5 years
Long- more than 5 years
What is the condition of having resources to support a standard of living now and in the future?
Financial security
What two categories is need split into?
Essential and near essential
What is something you desire or would like
Want
What is something you must have to survive?
Basic need
What is a negative outcome the decision maker identifies?
Cost
What is a positive outcome the decision maker identifies?
Benefits
What does the S stand for in SMART?
Specific-what you want to achieve
What does the M in SMART stand for?
Measurable-specific value to your goal
What does the A in SMART stand for?
Attainable- makes goal reasonable to achieve using skills you have available
What does the R stand for in SMART?
Realistic- set goals that are doable
What does the T stand for in SMART?
Timely- set a time frame
What is the knowledge, skills, and training people possess?
Human capital
What are five ways to pay for college?
Scholarships, grants, work study, savings, student loans
What helps people determine activities that they enjoy and provides them with a high level of satisfaction when they are engaged in activities?
Interest inventory
