Vocab Ch. 1

Front

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

Back

Paycheck to Paycheck

Front

money owed to another person or company

Back

Debt

Front

a person or organization that uses a product or service

Back

Consumer

Front

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

Back

Personal Finance

Front

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

Back

Credit

Front

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

Back

Interest Rate

Front

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

Back

Loan Shark

Front

the additional cost a lender charges for borrowing their money

Back

Interest

Front

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

Back

Net Worth

Front

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

Back

Financial Plan