Chapter One: Personal Finance Basics and the Time Value of Money

The stages in the family situation and financial needs of an adult

The study of how wealth is created and distributed

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities

The amount to whcih current savings will increase based on a certain interest rate and a certain time period; also refferred to as compounding

A rise in the general level of prices

The ability to readily convert financial resources into cash without a loss in value

What a person gives up by making a choice

The process of managing your money to achieve personal economic satisfaction

The current value for a future amount based on a certain interest rate and a certain time period; also referred to as discounting

Increases in an amount of money as a result of interest earned

Ideas and principles that a person considers correct, desirable, and important