Introduction to Personal Finance

A period of temporary economic decline during which trade and industrial activity are reduced; generally identified by a fall in gross domestic product (GDP)

• recession

• failure

• crash

A person or business that offers loans at extremely high interest rates

• entrepreneur

• loan shark

• creditor

All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.

• Personal finance

• Economy

A person or organization that uses a product or service

• consumer

• borrower

A fee paid by a borrower to the lender for the use of borrowed money.

• bills

• interest

A system by which goods and services are produced and distributed

• economy

• liabilities

A debt evidenced by a "note," which specifies the principal amount, interest rate and date of repayment

• bank fee

• loan

The knowledge and skill set necessary to be an informed consumer and manage finances effectively

• financial literacy

• budgeting

An obligation of repayment owed by one party to a second party

• debt

• ownership

The granting of a loan and the creation of debt; any form of deferred payment

• annual fee

• credit