U5-Saving Investing-L1-Choose to Save Flashcards Preview

Personal Finance > U5-Saving Investing-L1-Choose to Save > Flashcards

Flashcards in U5-Saving Investing-L1-Choose to Save Deck (13)
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1
Q

earning interest on interest

A

compound interest

2
Q

purchase of goods and services

A

consumption

3
Q

complete a task yourself rather than paying someone else to do it

A

do it yourself

4
Q

cash set aside to cover the cost of unexpected events

A

emergency savings

5
Q

price paid for using someone else’s money

A

interest

6
Q

percentage rate used to calculate interest

A

interest rate

7
Q

how quickly and easily assets can be converted to cash

A

liquidity

8
Q

something of owned of value

A

asset

9
Q

saving for future by putting money aside before paying regular expenses/spending money

A

pay yourself first

10
Q

original amount of money saved or invested

A

principal

11
Q

accumulation of excess funds by intentionally spending less than you earn

A

saving

12
Q

portion of income not spent on consumption

A

savings

13
Q

money available today is worth more than the same amount if received in the future

A

time value of money