Lesson 1.1

Key Terms

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

Consumer: a person or organization that uses a product or service

Debt: money owed to another person or company

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

Lesson 1.2

Key Terms

Credit: the granting of a loan and the creation of debt; any form of deferred payment
Interest Rate: the percentage of principal charged by the lender for use of its money​​​​​​​
Loan Shark: person or entity that charges borrowers interest rates above an established legal rate​​​​​​​
Interest: the additional cost a lender charges for borrowing their money

Lesson 1.3

Key Terms

No Vocabulary

Lesson 1.4

Key Terms

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

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

Asset: anything that is owned by an individual, including money in the bank or investments

Liability: financial debts or obligations

Positive Net Worth: the dollar value of a person’s assets is greater than the dollar value of their liabilities

Negative Net Worth: the dollar value of a person’s liabilities is larger than the value of their assets

Net Income: what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

Expense: the cost of goods or services; money paid out

Lesson 1.5

Key Term

Financial Literacy: the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

Lesson 1.6

Key Term

No Vocabulary