Personal Financial Planning Vocabulary

Arranging to spend, save, and invest money to live comfortably, have financial security and achieve goals.

• Personal Financial Planning

• Budgeting

• Time value of money

• Liquidity

Things you want to accomplish.

• Goals

• Values

• Wants

• Needs

The ability to easily convert financial assets into cash without loss of value.

• Liquidity

• Interest

• Time value of money

• Annuity

The price paid for the use of another's money.

• Interest

• Future value

• Present value

• Liquidity

The beliefs and principles you consider important, correct, and desirable.

• goals

• wishes

• values

• personal financial planning

Guides monetary policy

• Federal Reserve (FED)

• Securities and Exchange Commission (SEC)

• Federal Deposit Insurance Corporation (FDIC)

• National Credit Union Administration

Expenses that are consistent and require payment around the same time each month

• Anticipated expense

• Anticipated income

• Discretionary income

• Disposable income

Income that is consistent and is typically received around the same time each month.

• Anticipated income

• Unanticipated income

• Anticipated expense

• Unanticipated expense

An increase in the value of an asset

• Appreciation

• Depreciation

• Anticipated appreciation

• Unanticipated appreciation

Money or other items of value that a person owns.

• Assets

• Liabilities

• Collateral

• Income