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18 terms

money management vocabulary

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Asetts
consist of things of value or something that you own, such as a car, stereo system, etc.
Balance Sheet (Statement of Net Worth)
A summary of one's financial conditions (assets and liabilities and net worth)
Budget
A plan for managing money during a given period of time and consists of savings and spending
Cash Flow
Consists of money coming into an individual or net pay
Cash Flow Statement
A measure of the money you receive and the money you spent
Decision Making
The process of considering and analyzing information related to personal and financial goals to determine an action plan
Decision Making Steps
Consist of 1. Identifying the goal, 2. Gathering information, 3. Analyzing outcomes, 4. Examining alternatives, 5. Making a decision, and 6. Evaluating results
Delayed Gratification
The willingness to give up something you want now in return for something better later
Discretionary Income
Money left over from net income after all expenses
Expenditures
Money paid for goods and services
Financial Planning Process
The process of defining goals, developing a plan to achieve them, and putting the plan into action
Financial Planning Steps
Consist of 1. Setting goals, 2. Analyzing information, 3. Creating a plan, 4. Implementing the plan and 5. Monitoring and modifying the plan
Fixed Expenses
Expenses that do not change from one pay period to another and are in exact amounts
Goal
A specific statement of what you want to achieve, giving direction to your plan of action
Gross Pay
The total amount of income from your wages or salary before payroll deductions
Income
Any money coming in
Liabilities
Money owed to creditors
Long Term Goal
A goal that focuses on more than 1 year of time and requires delayed gratification