Modified- Personal Finance Spring 2020 mid-term

the work a person does

• Job

• income

money earned

• spend

• income

a person's knowledge and work skills

• human capital

• savings

to give money to someone else in exchange for something

• spend

• lend

another person gives you money that you will then need to pay back

• borrow

• purchase

to obtain by paying money for an item or a service

• income

• purchase

to let someone else use your money and they will need to pay you back

• human capital

• lend

What is a budget?

• A financial plan that defines expenses for a period of time.

• A way to invest for retirement

What is an emergency fund?

• A savings account set aside for unexpected situations.

• A way to invest for retirement.

Which of the following is an example of a "need"?

• video game

• Home