Assignment

Identify and analyze concepts on the topic/s presented

1. Financial Literacy - is the ability to understand and effectively use various financial
skills, including personal financial management, budgeting, and investing. The meaning
of financial literacy is the foundation of your relationship with money, and it is a lifelong
journey of learning.
2. Investing - involves putting capital to use today in order to increase its value over time.
3. Budgeting - allow or provide a particular amount of money in a budget.
4. Personal Financial Management - defines all financial decisions and activities of an
individual or household, including budgeting, insurance, mortgage planning, savings and
retirement planning.” Understanding these terms can help you better control your funds
and prepare for future financial success.
5. Financial Products - a product that is connected with the way in which you manage and
use your money, such as a bank account, a credit card, insurance, etc.: We offer our
customers a comprehensive range of financial products.
6. Debts - is an obligation that requires one party, the debtor, to pay money or other agreed-
upon value to another party, the creditor. Debt is a deferred payment, or series of
payments, which differentiates it from an immediate purchase.
7. Credit - is generally defined as an agreement between a lender and a borrower. Credit
also refers to an individual's or business's creditworthiness or credit history. In
accounting, a credit may either decrease assets or increase liabilities as well as decrease
expenses or increase revenue.
8. Interest - is payment from a borrower or deposit-taking financial institution to a lender or
depositor of an amount above repayment of the principal sum, at a particular rate. It is
distinct from a fee which the borrower may pay the lender or some third party.
9. Financial Stability- is a property of a financial system that dissipates financial
imbalances that arise endogenously in the financial markets or as a result of significant
adverse and unforeseeable circumstances.
10. Earning - are the profit that a company produces in a specific period, usually defined as
a quarter or a year. 11. Saving and Investing - Saving is an act of putting money aside,
typically into bank accounts. Meanwhile, investing is the act of buying assets like
equities, pooled funds like Unit Investment Trust Funds (UITFs) and Mutual Funds
(MFs), bonds, real estate, and other types of investments with an expectation that their
value will grow overtime.
11. Spending - includes all types of expenses an individual incurs related to buying goods
and services or anything that is consumable (i.e., not an investment). All spending falls
into two categories: cash (paid for with cash on hand) and credit (paid for by borrowing
money).
12. Protecting - is achieved when direct payments made to obtain health services do not
expose people to financial hardship and do not threaten living standards.
13. Emergency Fund - is money saved for the unexpected. An emergency fund isn't money
you use when you want to buy a big-ticket item or travel out of town on a whim.
14. Borrowing - To receive money from another party with the agreement that the money
will be repaid. Most borrowers borrow at interest, meaning they pay a certain percentage
of the principal amount to the lender as compensation for borrowing.
15. Loans - To receive money from another party with the agreement that the money will be
repaid. Most borrowers borrow at interest, meaning they pay a certain percentage of the
principal amount to the lender as compensation for borrowing.
16. Money - a current medium of exchange in the form of coins and banknotes; coins and
banknotes collectively.
17. Taxation - is a term for when a taxing authority, usually a government, levies or imposes
a financial obligation on its citizens or residents. Paying taxes to governments or officials
has been a mainstay of civilization since ancient times. 19. Budget Plan - is a chart that
shows you the flow of money in your everyday life. A budget can help you determine
where you are overspending as well as help you adjust bad spending habits. By making
slight adjustments to your budget, you may have the ability to save more or make larger
payments on your debts.