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SPENDING AND BUDGETING -- REMOTE LEARNING

Terms in this set (19)

asset
things you own worth a value
debt
money you owe to somebody else (also liabilities)
income
any new money that a person receives in a given time period
liability
money you owe to somebody else (also debt)
spending
using money to buy things
expense
the cost of something, or the amount of money a person has to pay to get or do something
budget
a tool to plan and track spending and saving
comparison shopping
one strategy that consumes use to gather information to help them make informed buying decisions
habit
things that we do regularly, often without thinking about them--help people achieve goals
short-term goal
goal that takes less than a year to attain
long-term goal
generally takes 5 years or longer to attain
fixed expense
expenses which stay basically the same from month to month, such as housing and transportation that are REQUIRED to pay
flexible expense
an expense that can be changed, such as food costs, household items, clothes, and entertainment; usually NOT REQUIRED
spending tool
the form used to buy things/spend money. Ex. debit cards, credit cards, cash, gift cards, etc.
budget process
A perpetual cycle of setting goals, tracking income/expenses, prepare budget, review budget, adjust budget, create a yearly budget
needs
things that are required in order to live
wants
things that add comfort and pleasure to your life
net income
The money that is left to budget (create a savings plan, reach goals, track income/expenses)
savings plan
A step-by-step approach for putting money aside in savings through your budget to reach financial goals.
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