L3 Personal Finance - Recap

What is a budget?

• A type of savings account

• A way to invest for retirement

• A fund for emergencies

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

What is debt?

• Money you have borrowed and need to pay back

• Money you make from working at a job

• Money you make from the government

• Taxes that you pay when you buy something

money earned

• salary
• income
• purchase
• spend

a person's knowledge and work skills

• credit
• resources
• human capital
• savings

the work a person does

• labor
• income
• salary
• resources

the amount of money a person can earn by being self-employed or by doing a job for another person or business

• salary
• scarce
• interest
• lend

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

• borrow
• purchase
• scarce
• labor

paying for something with money that is borrowed and must be paid back, usually with interest

• credit
• income
• resources
• salary

the money paid by the borrower to the lender for the use of the lender's money

• interest
• savings plan
• scarce
• purchase

a plan that helps you save money regularly, so you can reach you goals

• credit
• savings plan
• borrow
• credit