Financial Peace Chapter 7 Key Terms
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6 terms
Terms | Definitions |
|---|---|
 Budget | cash flow plan; assigns every dollar to a specific category/expense at the beginning of each month. |
| Discipline | self-control used in directing behavior; the key to wealth building is being consistent over time. |
| Envelope System | series of envelopes, divided into pre-determined categories, used to store cash for planned monthly expenses; self-imposed discipline tool to assist people in managing their monthly finances; possible categories include food, entertainment, gas, etc. |
| Impulse Purchase | To buy an item without thinking about it. |
| Reconcile | to match your bank statement with your checkbook, preferably within 72 hours of receiving the statement. |
| Zero-Based Budget | cash flow plan that assigns an expense to every dollar of one's income, wherein the total income minus the total expenses equals zero. |
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