Personal Finance Chapter 3.1 & 3.2

safe-deposit box

a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less.

surplus

extra money that can be spent or saved, depending on a person's financial goals and values.

Insolvency

is a financial state that occurs if liabilities are greater than assets.

Wealth

is an abundance of valuable material possessions or resources.

Money management

is planning how to get the most from your money.

net worth

is the difference between the amount that you own and the debts that you owe.

deficit

is the financial situation that occurs when more money is spent than is earned or received.

cash flow

is the money that actually goes into and out of your wallet and bank accounts.

Income

is your cash inflow is the money you receive.

real estate

land and any structures that are on it, such as a house or any other building that a person or family owns.

take-home pay,

or net pay, is the amount of income left after taxes and other deductions are taken out of your gross pay.

liabilities

or the debts that you owe.

market value

or the price at which property would sell.

personal balance sheet

also called a net worth statement, is a financial statement that lists items of value owned, debts owed, and a person's net worth.

Assets

are any items of value that an individual or company owns, including cash, property, personal possessions, and investments.

Liquid assets

are cash and items that can be quickly converted to cash.