7
Terms
Financial plan
Financial goals
Needs
Wants
Values
Wealth
Net worth
Assets
Liabilities
Investing
Financial independence
Growth
Average rate of return
Interest
Compound interest
Principal
Simple interest
Rule of 72
1
Objectives
When you complete Chapter 1, you will be able to:
Explain the purpose of a financial plan.
Define wealth and calculate net worth.
Define investing and calculate average rate of return and
compound interest.
Planning Your Financial
Future: It Begins Here
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