CNSR SCI 275 Study Guide - List Of Fables Characters, Tax Avoidance, Financial Statement
Document Summary
Improving your standards of living: standard of living-the necessities, comforts, and luxuries enjoyed or desired by an individual or family. Different levels of affluence see luxuries differently. Current spending level is based on necessities of life (food, clothing, shelter) Average propensity to consume-the percentage of each dollar of income, on average, that a person spends for current needs rather than savings: future needs. Some portion of income set aside current income for future spending. Accumulating wealth: assets determine how wealthy we are, wealth-the total value of all items owned by an individual, such as savings, accounts, stocks, bonds, home and automobiles. Financial assets-intangible assets such as savings accounts and securities that are required for some promised future return (earning assets) Tangible assets-physical assets such as real estate and automobiles that can be held for either consumption or investment purposes. Goal is to accumulate as much wealth as possible.
