Vocabulary words

Financial Plan

• A document outlining an individual's retirement and estate plans
• A set of goals for acquiring, saving, and spending money.
  

• A document outlining an individual's investment strategies and risk tolerance

Financial goals

• Investing in stocks
• Buying a luxury car
• Going on an expensive vacation
• Purchasing a new phone

Needs

• Food
• Water
• Shelter
• Love

Wants

• To eat
• A person desires

• To play
• To study

Values

• beliefs about ideas and principles that are important to you.

• Your family

• Cultural
• Economic

Investing

• Investing in stocks
• Investing in real estate
• Putting money to a use that you hope will increase its value over time.

• Investing in education

Financial independence

• Having enough wealth to live without working
• Owning a luxury car
• Living in a big house
• Traveling around the world

Growth

• Increase in size

• Decrease in size
• Staying the same size
• Increase in value

Average rate of return

• The total gain or loss made on an investment over a period of time
• The return on an investment as a percentage of the amount invested
• The profit or loss made on an investment over a period of time, expressed as a percentage of the original investment
• The total return on an investment over a period of time, divided by the number of years in that period

Assets

• A type of liability
• A type of expense
• A type of revenue
• A resource with economic value that an individual, corporation or country owns or controls