Econ

Are cash and other tangible property with a monetary value

Assets

A net worth statement or statement of financial position, reports what you own and what you owe

Balance sheet

Our spending plan is necessary for successful financial planning.

Budget

Is the difference between the amount budgeted and the actual amount received or spent

Budget variance

Is the actual inflow and outflow of cash during a given time period

Cash flow

Also called a personal income and expenditure statement is a summary of cash receipts and payments for a given period such as a month a year

Cash flow statement

Are debts you must pay within a short time usually less than a year like medical bills or tax payments

Current liabilities are

Spending exceeded their planning

Deficit

Is left over money after paying for housing, food, and other necessities

Discretionary income

Is the inflows of cash for an individual or a household

Income

Is the inability to pay debts when they are due; it occurs when a person's liabilities far exceed available assets EX: bankruptcy

Insolvency

Are amounts owed to others but do not include items not yet due, such as next months rent

Liabilities

Are cash and items of value that can easily be converted into cash

Liquid assets

Debts you do not have to pay in full until more than a year from now ex: loans

Long term liabilities

Day to day financial activities necessary to manage current personal economic resources while working toward lon term financial security

Money management

Is the difference between your total assets and your total liabilities

Net worth

A private storage area at a financial institution with maximum security for valuables

Safe deposit box

Spending less than they have planned

Surplus

Also called net pay is a persons earnings after deductions and taxes and other items

Take home pay