adult life cycleThe stages in the family situation and financial needs of an adult.

bankruptcyA set of federal laws that allow you to either restructure your debts or remove certain debts

economicsThe study of how wealth is created and distributed

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

future valueThe amount to which current savings will increase based on a certain interest rate and a certain time period; also referred to as compounding

inflationA rise in the general level of prices

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

opportunity costWhat a person gives up by making a choice

personal financial planningThe process of managing your money to achieve personal economic satisfaction

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

time value of moneyIncreases in an amount of money as a result of interest earned

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