PF OBJ 5.01 Vocab

Front

Compound Interest

Back

Earning interest on interest

Front

Consumption

Back

The purchase of goods and services

Front

Do it yourself

Back

Completing a task yourself instead of hiring someone.

Front

Emergency savings

Back

Cash set aside for unexpected events.

Front

Interest

Back

Price paid for using someone else’s money

Front

Interest rate

Back

Percentage rate to calculate interest

Front

Liquidity

Back

How quickly and easily assets can be accessed and converted into cash.

Front

Pay yourself first

Back

Saving for the future by setting aside money before bills or discretionary spending.

Front

Principal

Back

The original amount of money saved or invested

Front

Saving

Back

Accumulation of excess funds by spending less than you earn.