Chapter 12-Money Management Strategy
Personal Balance Sheet
also called a net worth statement; a financial statement that lists items of value owned, debts owed, and a person's net worth
Budget Variance
any difference between actual spending and budgeted amounts
Encounter
A brief or an unexpected meeting
Budget
A plan for making and spending money
Liquid Assets
cash and items that can be quickly converted to cash
Liabilities
debts that you owe
Surplus
extra money
Evaluate
form an idea of the amount, number, or value of; assess.
Personal Financial Statement
gives information about your current financial position and presents a summary of income and spending
Assets
money and other valuables belonging to an individual or business
Income
money received, especially on a regular basis, for work or through investments.
Take-Home Pay
the amount of income left after taxes and other deductions are taken out of your gross pay
Foundation
the basis from which an idea or situation develops
Money Management
the day-to-day financial activities associated with using limited income to satisfy your unlimited needs and wants.
Net Worth
the difference between assets and liabilities
Insolvency
the inability to pay debts when they are due because liabilities far exceed the value of assets
Discretionary Income
the money that remains after paying for taxes and necessities
Market Value
the price at which property would sell
Wealth
the value of assets owned
Cultivate
to nurture, improve, refine, promote
Resolve
to reach a decision
Secure
Lock, put away or stop work; gain control of
Cash Flow
Movement of the money you receive and the money you spend.
Real Estate
Property such as land, houses and office buildings.
Deficit
Spending more than you received
Safe-Deposit Box
a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less