(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
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| adult life cycle | The stages in the family situation and financial needs of an adult. (See page(s) 9) |
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| bankruptcy | A set of federal laws that allow you to either restructure your debts or remove certain debts. (See page(s) 21) |
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| compounding | A process that calculates interest based on previously earned interest. (See page(s) 17) |
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| economics | The study of how wealth is created and distributed. (See page(s) 11) |
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| financial plan | A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities. (See page(s) 23) |
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| future value | The amount to which current savings will increase based on a certain interest rate and a certain time period; typically involves compounding. (See page(s) 17) |
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| inflation | A rise in the general level of prices. (See page(s) 13) |
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| liquidity | The ability to readily convert financial resources into cash without a loss in value. (See page(s) 21) |
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| opportunity cost | What a person gives up by making a choice. (See page(s) 5) |
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| personal financial planning | The process of managing your money to achieve personal economic satisfaction. (See page(s) 3) |
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| present value | The current value for a future amount based on a certain interest rate and a certain time period; also referred to as discounting. (See page(s) 17) |
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| simple interest | Interest computed on the principal, excluding previously earned interest. (See page(s) 16) |
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| time value of money | Increases in an amount of money as a result of interest earned. (See page(s) 16) |
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| values | Ideas and principles that a person considers correct, desirable, and important. (See page(s) 4) |