Ch 1 Terms Personal Finance

A person or organization that uses a product or service

• Customer

• Consumer

• Business

• School

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

• Debt

• Bank Loan

• Credit

• Secondary Account

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

• Debt

• Bank Loan

• Promissory Note

A system by which goods and services are produced and distributed

• Wealth

• Personal Finance

• Economy

• Loan Sharks

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

• Personal Finance

• Financially Stable

• Financial Literacy

• Consumer 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)

• Debt

• Interest

• Loan Credit

• PBA

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

• Consumer Credit

• Lien

• Loan

• Promissory Note

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

• Dave Ramsey University

• Financial Literacy

• Personal Finance

• Budgetary Procedures