Personal Finance

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n)

Financial Planning

Inflation

A rise in the general level of prices. Is the most harmful ro people living in a fixed income. It also affects lender of money.

A question associated with the saving component of financial planning is:

Do you have an adequate emergency fund?

Value

Ideas and principles that a person considers correct, desirable and important

An advantage of personal financial planning is:

Increased control of your financial situation

Attempts to increase income through employment, investments, or ownership of a business are part of the _____________ component of financial planning.

Obtaining

Changes in personal, social, and economic factors make it necessary to

Review and revise your plan.

Economics

The study of how wealth is created and distributed

Rule of 72

To see how fast prices will double you use the rule of 72. Just divide 72 by the annual inflation or interest rate.