Vocab Ch. 1

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

• Paycheck to Paycheck

•  Personal Finance

• Credit
  

• Debt

1. money owed to another person or company

• Investment

• Debt

• Credit

• Consumer

a person or organization that uses a product or service

• Financial Plan

• Loan Shark

• Interest

• Consumer

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

• Financial Plan

• Financial Literacy

• Personal Finance

• Loan Shark

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

• Credit

• Debt

• Mortgage

• Investment

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

• Interest Rate

• Interest

• Loan Shark

• Net Worth

1.  person or entity that charges borrowers interest rates above an established legal rate​​​​​​​

• Mobster

• Consumer

• Mortgage Broker

• Loan Shark

the additional cost a lender charges for borrowing their money

• Premium

• Compound Growth

• Interest

• Interest Rate

1. the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities

• Intrinsic Value

• Net Worth

• Positive Net Worth

• Negative Net Worth

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

• Financial Advisor

• Financial Plan

• Personal Finance

• Financial Literacy