Chapter 3 - Budgets
Order by
15 terms
Terms | Definitions |
|---|---|
 Budget | A plan that matches your estimated income with your estimated ependitures (living expenses). |
| Short-term goals | These goals involve immediate needs or desires. |
| Medium-range goals | These are goals you hope to achieve within the next few years. |
| Long-range goals | These are goals you hope to achieve in five, ten, or more years from now. |
| Assets | How much you own. |
| Liabilities | How much you owe. |
| Net Worth | The amount you get when you subtract your liabilities from your assets. |
| Net Pay | The amount of money you take home after taxes and other deductions have been subtracted. |
| Withholding | The amount that your employer takes out of your check each month to pay your income tax. |
| FICA Tax | Social Security tax. |
| Allowance | The number that reduces the amount withheld for taxes, but it does not reduce the tax owed. |
| Fixed Expense | Amounts that you have already commited to pay; are the same payment every month. |
| Variable Expense | Living expenses that may vary each month. |
| Liquid Assets | Assets that can quickly be converted to cash. |
| Gross Pay | The salary or wages earned before taxes have been withheld. |
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