Finance Section 1

A person or organization that uses a product or service

• Consumer

• User

• Debtor

• Economist

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

• Credit

• Debit

• Loan

• Loss of Income

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

• Loan

• Interest

• Debt

• Overtime

A system by which goods and services are produced and distributed

• Walmart

• Economy

• Communism

• Creditors

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

• Banker

• Lawyer

• Study of Economics

• Financial Literacy

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

• Interest

• Loan

• Payback

• Overtime

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

• Gift

• Interest

• Loan

• IOU

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

• Experience

• Personal Finance

• Money management

• Debt

Winning at money is 80%______ and 20%______

• Luck; Skill

• Behavior; Head Knowledge

• Income; Finance

• Saving; Spending

What is the first key component of a successful financial plan?

• Set goals

• Assess you financial situation

• Write it down

• Become rich