1Adult Life Cycle
The stages in the family situation and financial needs of an adult
2Economics
The study of how wealth is created and distributed
3Financial Plan
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities
4Future Value
The amount to whcih current savings will increase based on a certain interest rate and a certain time period; also refferred to as compounding
5Inflation
A rise in the general level of prices
6Liquidity
The ability to readily convert financial resources into cash without a loss in value
7Opportunity Cost
What a person gives up by making a choice
8Personal Financial Planning
The process of managing your money to achieve personal economic satisfaction
9Present Value
The current value for a future amount based on a certain interest rate and a certain time period; also referred to as discounting
10Time Value of Money
Increases in an amount of money as a result of interest earned
11Values
Ideas and principles that a person considers correct, desirable, and important