AMDM Chapter 1 Vocab

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

Learning the language of money is not important because you can depend on financial planners to manage your money

An obligation of repayment owed by one party (debtor/borrower) to a second party (creditor/lender).

When it comes to managing money, success is _____% knowledge and _____% behavior.

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

A system by which goods and services are produced and distributed

A person or organization that buys/uses goods or services

All decisions and activities of an individual or family regarding their money including spending, saving, and budgetting

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

A debt evidenced by a 'note' showing the principal amount, interest rate, and date of repayment. (Ex. house mortgage)