earning

gaining money by working

inflation

prices rise

Spending

using money to purchase goods and services

Law of Scarcity

Choices because of unlimited needs and wants

opportunity cost

The highest-valued alternative

trade-off

The choice of one item while giving up another

Responsible spending

researching and planning purchases in advance

Saving

putting aside money for later use

Responsible saving

forming the habit of saving regularly

Borrowing

obtaining money, goods, or services at present in exchange for the promise of future payment