Building Wealth 1. Asset- anything an individual or business owns that has commercial or exchange values. 2.

Liability- money you owe. 3. Investment- is anything you acquire for future income or benefit. 4. Principal- the amount borrowed or the unpaid balance on a loan. 5. Pay-Day Loans 3 Characteristics; (A) Very high, double digit interest rates, (B) Very high fees, (C) Additional fees to extend repayment terms. 6. How long will it take to pay off credit cards? $1,000 @ 14%=71 $150 @ 24%=6.25 $300 @ 20%=15