Ch 1 Intro to Personal Finance

Most Americans today are wealthy and will have financial security when they retire.

Learning the language of money is not that important since you will be able to depend on financial planners

Expensive houses and new cars are a true indication of wealth

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

A period of temporary economic decline

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

The credit system today utilizes high interest rates and fees to turn huge profits

Having debt keeps you from building wealth.

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

True financial security is achieved when your money begins to generate an income

A debt evidenced by a "note", which specifies the principal amount, interest rate, and date of repayment

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

Everyone should have the same financial plan.

When creating a financial plan, one of the first things you should do is assess your current financial situation

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

A person or business that offers loans at extremely high interest rates.

A person or organization that uses a product or service

Since you are a teenager, what you do now with money will have little effect on your financial future.

A system by which goods and services are produced and distributed

Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home