test 1 Flashcards
(22 cards)
Personal Finance
financial decisions one must make in order to earn, budget, save, spend money overtime
Consumer
a person or organization that uses a product or service
debt
money owed to another person or company
paycheck to paycheck
household whose monthly income is devoted to expenses and has little to no savings
credit
the granting of a loan and the creation of debt; any form of deferred payment
interstate rate
the percentage of principal charged by the lender for use of its money
loan shark
person or entity that charges borrowers interest rates above an established legal rate
interest
the additional cost a lender charges for borrowing their money
what was pres. Franklin d Roosevelt responsible for?
new deal programs, designed to promote economic recovery and help working-class Americans get back on their feet.
financial plan
a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
net worth or wealth
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities. shows you where you are financially
assets
anything you completely own, including money in the bank or investments.
liability
any debt you have
expense
what you spend money on each month, bills and any debt payments
positive net worth
assets outweigh your liabilities
negative net worth
liabilities outweigh your assets
net income
what a person earns after payroll taxes and other deductions are taken out; take home pay
personal finance is what percent head knowledge?
20%
personal finance is what percent behavior
80%
when did the student loan marketing association begin?
1972
what is the average student loan debt?
26,000
What is Sallie Mae?
Student Loan Marketing Association, offers gov funded federal loans to college students.
