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SAE UNIT1 vOCABULARY jOHN casco January 11,2015

Published on Jan 11, 2016

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PRESENTATION OUTLINE

SAE UNIT1 vOCABULARY
jOHN casco
January 11,2015

Benefits

Positive Outcomes that result from a choice or decison

The benefits of saving money early is building your 401k.

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Choices

Possible alternatives or options; the best option under a given circumstance  

WE MAKE CHOICES EVERYDAY TO SAVE OR SPEND OUR MONEY

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Compound interest

The interest earned on principal plus PREVIOUSLY accured interest 

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decision making

The process used to determine the best possible choices at a given time based on available info and resources 

It is good to learn decision making skills to make good choices

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Diversification

A STRATEGy for reducing risk by spreading investment money among a number of investment types and industries

countries have much diversification between each other like currencies

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Financial Plan

a systematic course of action for identifing financial goals 

A financial plan should include your retirement

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investment plan

a roadmap for individuals who invest in the market

Your investment plan now could determine your future financially

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goal

an end result toward which effort is directed

Most peoples goals is to be successful in life

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interest rate

a percetage of the principal amount that serves as the cost of using that money 

because interest rate has come down this year house prices will be high

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investing

money spend to increase current or future income

you should invest in whatevero you think benefits you

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limited resources

a term indication that ones resources may not be enough to satisfy all needs and wants

gas is a limited resource we must save

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market returns

the increase or decrease of ones investment portfolio

your market return could change depending on the rate

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needs

things essential to human existence

Water is somthing you need because it is essential to human life

wants

things that are not necessary for sustaining life but makes ones life easier
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our wants will are endless because of our desire for them

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opportunity cost

the next most valuable alternatives that will be given up as a result of choosing another option

opportunity cost is not settling for one investment

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rainy day fund

liquid assests that are saved and readily available in the event of emergency

rainy day funds could improve state credit ratings

risk

the possibilty that an investment will lose value

"with risk comes reward"

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savings

income withheld from current spending for future use

to invest your money you need saving strategies to learn

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time value of money

the concept that initial investment made early in life will accure more interest than a series of deposits made later

the ealier you invest the value of money will increase for you

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trade-off

something that is lost by choosing one option over another

sometimes a trade-off is risky but the outcomes could be worth it

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values

concepts important to an individual that provides a foundation upon which decisions are made

we value our wants more then needs

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