Chapter 1 Personal Finance Vocabulary Words

The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

What a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay?

Expense: the cost of goods or services; money 

All the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time

An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings

A person or organization that uses a product or service

All the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time

Money owed to another person or company

The percentage of principal charged by the lender for use of its money​​​​​​​

The additional cost a lender charges for borrowing their money

A plan of action that allows a person to meet not only their immediate needs but also their long-term goals