Personal Finance & Economics Final Review

What is a want?

• something you need to have

• something you desire to have

• something to maintain survival

• a purchase that is made often

What are values?

• beliefs and principles the individual considers important, correct, and desirable

• material items

• something you need to give up in order to gain something else

• something you desire to have

What are your goals?

What is personal financial planning?

• something needed for survival

• something you need to give up for a better option

• a task that someone else performs for you

• arranging to save, spend, and invest money

What is an opportunity cost?

• the amount of money that is lost when making a decision

• how much making a decision will cost

• something you need to give up in order to gain a more desirable outcome

• the best option when making decisions

Short-term goals take less than ____ year(s) to complete. (Write out the number)

What is a service?

• volunteer work

• becoming a soldier in the army

• giving away money to others

• a task that a person or machine performs for the individual

What is liquidity?

• describes how flexible the economy is

• measures the rate at which money can be lost

• describes how likely the economy is going to fluctuate

• describes how easy financial assets can be converted into cash without losing value

Intermediate goals take ____ to ____ year(s) to complete. (Write out the numbers like "three, eight")

Long-term goals take ____ year(s) or more to complete. (Write out the number)