Introduction to Personal Finance - Chapter 1

A person or organization that uses a product or service

• Consumer

• Debt

• Company

• Personal Finance

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

• Layaway

• Credit

• Financial Literacy

• Bank

An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest

• Credit Card

• Credit

• Debt

• Banker

A system by which goods and services are produced and distributed

• Economy

• Bank

• Credit

• Loan

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

• Budgeting

• Financial Literacy

• Personal Finance

• Credit

A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount)

• Interest

• Equity

• Loan

• Credit

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

• Loan

• Debt

• Contract

• Bank

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

• Decisions

• Budgeting

• Personal Finance

• Loan