SHS PF Spending Plans
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27 terms
Terms | Definitions |
|---|---|
 financial planning | process used achieve long-term financial success while having a quality standard of daily living |
| spending plan | paper or electronic document used to record both planned and actual income through expenditures over a period of time |
| value | fundamental belief or practice about what is desirable, worthwhile, and important to an individual |
| want | something unnecessary, but desired--or an item which increases the quality of living |
| goal | end result of something a person intends to acquire, achieve, do, reach, or accomplish in the near or distant future |
| income | money earned |
| expense | money spent |
| fixed expenses | fixed amount due each month, are contractual, and not easy to reduce or eliminate |
| flexible expenses | vary each month in the amount owed, are not contractual, and do not have to be paid by a certain date making it easy to reduce or eliminate the expense |
| net gain | amount of money remaining after expenses are subtracted-- to either save, spend, or invest |
| net loss | more money is spent than is being earned requiring the use of credit (borrowed money) to meet financial obligations |
| wealth | having a large amount of money or valuable possessions--most important predictor of overall financial security |
| net worth | assets minus liabilities--what remains after all debts are paid (net worth) |
| net worth statement | describes an individual or family's financial condition on a specified date |
| assets | everything a person owns that has monetary value |
| liabilities | debts--what is owed to others |
| short-term goal | attainable in less than one year |
| long-term goal | target date to be accomplished is beyond one year |
| control systems | ways to assure that the tracking of expenses is done accurately |
| net income | income after all deductions (take-home pay) |
| gross income | income earned during a pay period before payroll deductions |
| taxes | required citizen charges by local, state and federal governments |
| mortgage | home loan |
| risk | uncertainty about a situation's outcome |
| insurance | arrangement between an individual and an insurance company to protect the individual against risk |
| savings | portion of current income not spent on consumption |
| need | something thought to be a necessity or essential item required for life |
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