Question: Consumer

Answer: A person or organization that uses a product or service.

Question: Credit

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

Question: Debt

Answer: An obligation of repayment owed by one part (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest.

Question: Economy

Answer: A system by which goods and services are produced and distributed.

Question: Financial Literacy

Answer: The knowledge and skill set necessary to be an informed consumer and manage finances effectively.

Question: Interest

Answer: A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount).

Question: Loan

Answer: A debt evidenced by a “note,” which specifies the principal amount, interest rate and date of repayment.

Question: Personal Finance

Answer: All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.

Question: Key components:

Answer: 1. Assess your financial plan

2. Set money goals

3. Write out a detailed plan

4. Execute your plan

5. Know your money personality

6. Regularly monitor your financial plan

7. Replace money myths with money truths

Question: Personal finance is % behavior and % head knowledge.

Answer: 80, 20