Financial Literacy Ch 4 Vocabulary Review

Things needed for survival, such as food, water, clothing, shelter, and medical care.

• needs
• wants
• assets
• liabilities

Things people desire for reasons beyond survival and basic comfort.

• needs
• wants
• assets
• liabilities

Money and items of value that you own.

• needs
• wants
• assets
• liabilities

Debts that you owe.

• needs
• wants
• assets
• liabilities

Money or other items of value that are used to acquire goods and services.

• financial resources
• cash inflows
• cash outflows
• net worth

Income from your job, investments, and other sources.

• financial resources
• cash inflows
• cash outflows
• net worth

Expenses, or items for which you must spend money.

• financial resources
• cash inflows
• cash outflows
• net worth

The difference between your assets and liabilities.

• financial resources
• cash inflows
• cash outflows
• net worth

Giving up one option in exchange for another.

• trade-off
• cash inflows
• cash outflows
• opportunity cost

The value of your next best option—what you are giving up.

• trade-off
• cash inflows
• cash outflows
• opportunity cost