Untitled Flashcards

Front

List and describe S.M.A.R.T.

Back

Specific, Measurable, Achievable, Relevant, and Time-Bound

Front

List and describe D.E.C.I.D.E.

Back

Define the problem, Establish criteria, Consider alternatives, Identify the best option, Develop and implement a plan, and Evaluate the decision

Front

Instant Gratification

Back

the immediate desire and satisfaction of needs or wants, without delay or waiting

Front

List and explain how goals are classified

Back

Goals are classified into four main types:

1. Short-term goals – Achievable in a short period (days to months); focus on immediate tasks.

2. Long-term goals – Achievable over a long period (years); focus on major life or career achievements.

3. Personal goals – Related to individual growth, health, relationships, or personal interests.

4. Professional goals – Related to career advancement, skills development, or job performance.

Front

List and explain 2 out of 4 reasons you're not reaching your goals

Back

• Lack of clear planning – Without a step-by-step plan, it's hard to stay focused or measure progress.

• Procrastination – Delaying tasks reduces momentum and leads to missed opportunities or deadlines.

Front

What is the difference between principal and interest?

Back

Principal – The original amount of money borrowed or invested.
Interest – The cost of borrowing money or the earnings from an investment, calculated as a percentage of the principal.

Front

What is the difference between fixed and variable rates?

Back

Fixed rate – An interest rate that stays the same for the entire term of the loan or investment.
Variable rate – An interest rate that can change over time based on market conditions.

Front

Reasons you should borrow money instead of pay cash?

Back

1. Preserve cash flow – Borrowing allows you to keep cash on hand for emergencies or other investments.
2. Build credit – Responsible borrowing and timely repayment can improve your credit score.
3. Leverage lower interest rates – If the borrowing rate is low, it may be more cost-effective than using your own funds.
4. Take advantage of opportunities – Borrowing can help you seize investment opportunities or make purchases that may appreciate in value.

Front

List and explain the types of credit accounts. (4)

Back

1. Revolving credit – A credit account that allows you to borrow up to a certain limit, pay it off, and borrow again (e.g., credit cards).
2. Installment credit – A loan that is repaid in fixed amounts over a set period (e.g., car loans, mortgages).
3. Open credit – A credit account that must be paid in full each month (e.g., charge cards).
4. Secured credit – A loan backed by collateral (e.g., home or auto loans), reducing the lender's risk.

Front

Use the simple interest formula

Back

Simple Interest Formula:
I = P × r × t

Where:

• I = Interest

• P = Principal (initial amount)

• r = Annual interest rate (in decimal form)

• t = Time in years

You can use this formula to calculate the interest earned or paid on a principal over a specific period of time at a fixed interest rate.