Personal Finance Chapter 1 Vocabulary Flashcard

Front

Asset

Back

Anything of value that is owned by an individual

Front

What does a budget help you do?

Back

Plan how to save and spend your income

Front

Compound Interest

Back

Interest paid on an investment and on any interest previously earned

Front

Who is a consumer?

Back

A person or organization that purchases a product or service

Front

What does credit involve?

Back

The granting of a loan and the creation of debt

Front

What is debt?

Back

An obligation to repay borrowed money

Front

Expense

Back

The cost of goods or services

Front

Interest

Back

The charge for borrowed money, generally defined as a percentage

Front

What are investments?

Back

Money put into an account intended for growth

Front

Liability

Back

Anything you owe; a debt