PF OBJ 1.00 Vocab

Needs

• The value of the next best alternative that must be forgone as a result of a decision

• Giving up one thing for another

• Goods or services that are required for survival

• The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival

Opportunity cost

• The value of the next best alternative that must be forgone as a result of a decision

• A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

• The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival

• Managing money in ways that build a sense of understanding, competence, and control

Trade‐off

• Giving up one thing for another

• The value of the next best alternative that must be forgone as a result of a decision

• Feeling good about one’s life

• Specific objectives that are accomplished through financial planning

Value

• A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

• Goods or services that are required for survival

• The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival

• A goal that will be attained in more than one year

Want

• Goods or services that are required for survival

• The value of the next best alternative that must be forgone as a result of a decision

• A goal that will be attained in less than one year

• The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival

Financial goals

• Specific objectives that are accomplished through financial planning

• Managing money continuously through life in order to reach your financial goals

• Managing money in ways that build a sense of understanding, competence, and control

• Feeling good about one’s life

Financial planning

• Managing money continuously through life in order to reach your financial goals

• Managing money in ways that build a sense of understanding, competence, and control

• Feeling good about one’s life

• Specific objectives that are accomplished through financial planning

Financial well‐being

• Managing money in ways that build a sense of understanding, competence, and control

• Feeling good about one’s life

• Specific objectives that are accomplished through financial planning

• Managing money continuously through life in order to reach your financial goals

Well‐being

• Feeling good about one’s life

• Giving up one thing for another

• The value of the next best alternative that must be forgone as a result of a decision

• Goods or services that are required for survival

Goal

• Something a person intends to acquire, achieve, or accomplish in the future

• A goal that will be attained in less than one year

• A goal that will be attained in more than one year

• Specific objectives that are accomplished through financial planning