Financial Literacy Unit 1 Study Guide

This represents your personal and financial goals at one point in time.

• Opportunity Cost

• Assets

• Variable Expenses

• Financial Plan

• Value

Things that you have to pay for that you don’t plan for.

• Unexpected Expenses

• Assets

• Value

• Personal Goals

• Opportunity Cost

An increase in the general level of prices for goods and services.

• Inflation

• Assets

• Value

• Personal Goals

• Opportunity Cost

The amount of money a person has to spend after needs are met.

• Opportunity Cost

• Personal Goals

• Value

• Assets

• Discretionary Income

To allocate or provide for an amount of money.

• Value

• Assets

• Opportunity Cost

• Budgeting

• Personal Goals

Money and items of value that you own.

• Variable Expenses

• Personal Goals

• Opportunity Cost

• Assets

• Value

This is the difference between your assets and your liabilities.

• Opportunity Cost

• Personal Goals

• Value

• Assets

• Net Worth

Any debts that you owe for a tangible item that must be repaid.

• Assets

• Personal Goals

• Value

• Liabilities

• Opportunity Cost

The benefit or item you give up.

• Assets

• Value

• Personal Goals

• Variable Expenses

• Opportunity Cost

Things you want to achieve.

• Personal Goals

• Variable Expenses

• Assets

• Opportunity Cost

• Value