Personal Finance Review

Front

What is an opportunity cost?

Back

What was given up by making a decision.

Front

What is income?

Back

Money that you earn

Front

What is an expense?

Back

Money that you spend

Front

What is a budget?

Back

A plan for your money

Front

What is NOT an example of an opportunity cost?

Back

It costs you money to invest in an opportunity like owning a business

Front

What is an emergency fund?

Back

Money that you save for unexpected expenses.

Front

What does investing mean?

Back

Spending money to own something that hopefully makes money or that goes up in value.

Front

What is interest?

Back

The price/fee that is paid to borrow/use money. Usually a percentage of the amount borrowed or invested.

Front

What is a savings account?

Back

A bank account that pays a small amount of interest on the money in that account

Front

What is a Pay Yourself First budget?

Back

A plan where you set money aside for your goals first, then pay your needs/ bills, then spend everything that is left on wants.