financial literacy chapter 1 and 2 vocab

the knowledge and skillset necessary to be an informed consumer and manage finances effectively

interest paid on interest previously earned

a system by which goods and services are produced and disturbed

500 dollars in readily available cash to be used only to be used int the event of an emergency

percentage paid to a lender for the use of borrowed money

the granting of a loan and the creation of debt; any form of deferred payment

saving money over time for a large price

a fee paid by a borrower to the lender for the use of borrowed money

the five steps to financial sucess

an obligation of repayment owed by one party to a second party

a debt evidenced by a "note" which specifies the principal amount

all of the decisions and activities of an individual or family regarding their money

A person or organization that uses a product or service