Chapter 1 Key Terms

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

• Consumer

• Debt

• Loan

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

• Financial Literacy

• Consumer

• Economy

A person or organization that uses a product or service

• Economy

• Consumer

• Personal Finance

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)

• Loan

• Interest

• Credit

A system by which goods and services are produced and distributed

• Economy

• Debt

• Loan

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

• Credit

• Debt

• Loan

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

• Personal Finance

• Economy

• Financial Literacy

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

• Personal Finance

• Debt